<PAGE>
Exhibit 11
El Paso Electric Company
Computation of Earnings Per Share
(In Thousands Except for Share Data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
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2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Net income applicable to common stock:
Income before extraordinary item........................ $ 25,442 $ 26,224 $ 49,166 $ 30,537
Extraordinary loss on extinguishments of debt, net of
income tax benefit................................... (1,223) (2,068) (1,772) (3,251)
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Net income applicable to common stock................ $ 24,219 $ 24,156 $ 47,394 $ 27,286
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Basic earnings per common share:
Weighted average number of common shares
outstanding.......................................... 54,400,463 59,232,142 54,691,003 59,879,180
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Net income per common share:
Income before extraordinary item..................... $ 0.468 $ 0.443 $ 0.899 $ 0.510
Extraordinary loss on extinguishments of debt, net
of income tax benefit............................. (0.023) (0.035) (0.032) (0.054)
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Net income........................................ $ 0.445 $ 0.408 $ 0.867 $ 0.456
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Diluted earnings per common share:
Weighted average number of common shares
outstanding.......................................... 54,400,463 59,232,142 54,691,003 59,879,180
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Effect of dilutive potential common stock options based
on the treasury stock method using average market
price:
Quarter ended March 31............................ - - 542,564 -
Quarter ended June 30............................. - - 745,362 384,767
Quarter ended September 30........................ 874,872 498,828 874,872 498,828
Quarter ended December 31......................... - - - -
Effect of dilutive potential restricted common stock
based on the treasury stock method using average
market price:
Quarter ended March 31............................ - - 22,749 -
Quarter ended June 30............................. - - 51,623 29,186
Quarter ended September 30........................ 70,209 45,471 70,209 45,471
Quarter ended December 31......................... - - - -
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945,081 544,299 2,307,379 958,252
Divided by number of quarters..................... 1 1 3 3
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Net effect of diluted potential common stock... 945,081 544,299 769,126 319,418
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Weighted average number of common shares and dilutive
potential common shares outstanding.................. 55,345,544 59,776,441 55,460,129 60,198,598
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Net income per common share:
Income before extraordinary item..................... $ 0.460 $ 0.439 $ 0.887 $ 0.507
Extraordinary loss on extinguishments of debt, net
of income tax benefit............................. (0.022) (0.035) (0.032) (0.054)
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Net income........................................ $ 0.438 $ 0.404 $ 0.855 $ 0.453
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</TABLE>
<PAGE>
Exhibit 11
El Paso Electric Company
Computation of Earnings Per Share
(In Thousands Except for Share Data)
Twelve Months Ended
September 30,
--------------------------
2000 1999
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Net income applicabe to common stock:
Income before extraordinary items............. $ 50,241 $ 33,518
Extraordinary loss on extinguishments of
debt, net of income tax benefit............. (1,857) (3,251)
Extraordinary gain on discharge of debt,
net of income tax expense................... - 3,343
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Net income applicable to common stock....... $ 48,384 $ 33,610
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Basic earnings per common share:
Weighted average number of common shares
outstanding................................. 55,412,512 59,952,191
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Net income per common share:
Income before extraordinary items........ $ 0.907 $ 0.559
Extraordinary loss on extinguishments
of debt, net of income tax benefit..... (0.034) (0.054)
Extraordinary gain on discharge of
debt, net of income tax expense........ - 0.056
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Net income............................. $ 0.873 $ 0.561
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Diluted earnings per common share:
Weighted average number of common shares
outstanding................................. 55,412,512 59,952,191
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Effect of dilutive potential common stock
options based on the treasury stock
method using average market price;
Quarter ended March 31................... 542,564 -
Quarter ended June 30.................... 745,362 384,767
Quarter ended September 30............... 874,872 498,828
Quarter ended December 31................ 514,212 479,130
Effect of dilutive potential restricted
common stock based on the treasury stock
method using average market price;
Quarter ended March 31................... 22,749 -
Quarter ended June 30.................... 51,623 29,186
Quarter ended September 30............... 70,209 45,471
Quarter ended December 31................ 56,258 39,433
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2,877,849 1,476,815
Divided by number of quarters............ 4 4
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Net effect of dilutive potential
common stock......................... 719,462 369,204
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Weighted average number of common shares
and dilutive potential common shares
outstanding................................. 56,131,974 60,321,395
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Net income per common share:
Income before extraordinary items........ $ 0.895 $ 0.556
Extraordinary loss on extinguishments
of debt, net of income tax benefit..... (0.033) (0.054)
Extraordinary gain on discharge of
debt, net of income tax expense........ - 0.055
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Net income............................. $ 0.862 $ 0.557
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