El Paso Corp. Reports Q4, Full Year Results

El Paso has reported fourth quarter and full-year 2008 financial and operational results for the company.

  • $1.31 adjusted full-year diluted earnings per share (EPS) versus $1.00 in 2007
  • $1.24 reported loss per diluted share from continuing operations for 2008 versus $0.57 reported income in 2007
  • $0.21 adjusted fourth quarter 2008 diluted EPS versus $0.27 in 2007
  • Fourth quarter 2008 reported loss of $2.43 per diluted share versus earnings of $0.21 in 2007
  • Pipeline fourth quarter 2008 earnings before interest expense and taxes (EBIT) and throughput up 4 percent and 1 percent, respectively, from fourth quarter 2007
  • Exploration & Production (E&P) had a $2.5 billion fourth quarter 2008 EBIT loss, including $2.7 billion of pre-tax non-cash full cost ceiling test charges, a $0.1 billion non-cash impairment related to the company's investment in Four Star Oil & Gas Company (Four Star), and $0.2 billion of mark-to-market (MTM) gains on derivative contracts not designated as accounting hedges
  • Fourth quarter production 752 million cubic feet equivalent per day (MMcfe/d), including unconsolidated affiliate volumes of 73 MMcfe/d, which includes production losses of 53 MMcfe/d due to Hurricane Ike
  • $2.2 billion of liquidity at December 31, 2008, which has since risen to $3.3 billion

"We had very solid results in 2008, despite a challenging business environment during the second half of the year," said Doug Foshee, president and chief executive officer of El Paso Corporation. "We were successful on the pipeline expansion front, increasing our committed project backlog to $8 billion and placing seven pipeline projects in service. At the same time, we recorded our best-ever safety performance. On the E&P side, we had success with the drill bit. Prior to revisions, we added 595 Bcfe to our proved reserves and reduced our reserve replacement costs to $2.87 per Mcfe."

Foshee added, "We also acted aggressively to meet the challenges of the current economic environment by adding $1.9 billion of liquidity over the past several months primarily through debt offerings, a new revolving credit facility, and non-core asset sales."