<PAGE>
Exhibit 11
El Paso Electric Company
Computation of Earnings Per Share
(In Thousands Except for Share Data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- ----------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net income applicable to common stock:
Income before extraordinary item.............................. $ 15,168 $ 7,038 $ 23,724 $ 4,313
Extraordinary loss on repurchases of debt, net of income
tax benefit................................................. - (1,183) (549) (1,183)
----------- ----------- ----------- -----------
Net income applicable to common stock....................... $ 15,168 $ 5,855 $ 23,175 $ 3,130
=========== =========== =========== ===========
Basic earnings per common share:
Weighted average number of common shares
outstanding................................................. 54,375,819 60,206,105 54,837,870 60,208,059
=========== =========== =========== ===========
Net income per common share:
Income before extraordinary item............................ $ 0.279 $ 0.117 $ 0.433 $ 0.072
Extraordinary loss on repurchases of debt, net of income
tax benefit............................................... - (0.020) (0.010) (0.020)
----------- ----------- ----------- -----------
Net income................................................ $ 0.279 $ 0.097 $ 0.423 $ 0.052
=========== =========== =========== ===========
Diluted earnings per common share:
Weighted average number of common shares
outstanding................................................. 54,375,819 60,206,105 54,837,870 60,208,059
----------- ----------- ----------- -----------
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..................................... 745,362 384,767 745,362 384,767
Quarter ended September 30................................ - - - -
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 51,623 29,186
Quarter ended September 30................................ - - - -
Quarter ended December 31................................. - - - -
----------- ----------- ----------- -----------
796,985 413,953 1,362,298 413,953
Divided by number of quarters............................. 1 1 2 2
----------- ----------- ----------- -----------
Net effect of dilutive potential common stock............ 796,985 413,953 681,149 206,977
----------- ----------- ----------- -----------
Weighted average number of common shares and dilutive
potential common shares outstanding......................... 55,172,804 60,620,058 55,519,019 60,415,036
=========== =========== =========== ===========
Net income per common share:
Income before extraordinary item............................ $ 0.275 $ 0.116 $ 0.427 $ 0.071
Extraordinary loss on repurchases of debt, net of income
tax benefit............................................... - (0.019) (0.010) (0.019)
----------- ----------- ----------- -----------
Net income................................................ $ 0.275 $ 0.097 $ 0.417 $ 0.052
=========== =========== =========== ===========
</TABLE>
<PAGE>
El Paso Electric Company Exhibit 11
Computation of Earnings Per Share
(In Thousands Except for Share Data)
<TABLE>
<CAPTION>
Twelve Months Ended
June 30,
----------------------------------
2000 1999
----------- -----------
<S> <C> <C>
Net income applicable to common stock:
Income before extraordinary items............................. $ 51,023 $ 29,616
Extraordinary loss on repurchases of debt, net of income
tax benefit................................................. (2,702) (1,183)
Extraordinary gain on discharge of debt, net of income
tax expense................................................. - 3,343
----------- -----------
Net income applicable to common stock....................... $ 48,321 $ 31,776
=========== ===========
Basic earnings per common share:
Weighted average number of common shares
outstanding................................................. 56,572,978 60,188,290
=========== ===========
Net income per common share:
Income before extraordinary items........................... $ 0.902 $ 0.492
Extraordinary loss on repurchases of debt, net of income
tax benefit............................................... (0.048) (0.020)
Extraordinary gain on discharge of debt, net of income
tax expense................................................. - 0.056
----------- -----------
Net income................................................ $ 0.854 $ 0.528
=========== ===========
Diluted earnings per common share:
Weighted average number of common shares
outstanding................................................. 56,572,978 60,188,290
----------- -----------
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................................ 498,828 457,905
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................................ 45,471 35,468
Quarter ended December 31................................. 56,258 39,433
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2,477,067 1,425,889
Divided by number of quarters............................. 4 4
----------- -----------
Net effect of dilutive potential common stock............ 619,267 356,472
----------- -----------
Weighted average number of common shares and dilutive
potential common shares outstanding......................... 57,192,245 60,544,762
=========== ===========
Net income per common share:
Income before extraordinary items........................... $ 0.892 $ 0.489
Extraordinary loss on repurchases of debt, net of income
tax benefit............................................... (0.047) (0.019)
Extraordinary gain on discharge of debt, net of
income tax expense........................................ - 0.055
----------- -----------
Net income................................................ $ 0.845 $ 0.525
=========== ===========
</TABLE>
