El Paso Natural Gas Company Reports Second Quarter 1995 Earnings

Business Wire, July 13, 1995

EL PASO, Texas--(BUSINESS WIRE)--July 13, 1995--El Paso Natural Gas Company (NYSE:EPG) reported second quarter 1995 net income of $20 million, or $0.58 per share, compared with second quarter 1994 net income of $24 million, or $0.65 per share. The decrease was due primarily to increased hydropower generation, which lowered the company's mainline throughput to California, as well as the effect of lower gas prices on the company's gathering and marketing activities. Second quarter 1995 operating income was $53 million, compared with $60 million a year ago. Total EPG mainline throughput averaged 3.5 billion cubic feet per day in the quarter, up 2 percent vs. the year ago period due to strong off-system throughput, which grew 75 percent. Gathering volumes totaled 1.2 billion cubic feet per day. Gathering volumes continue to be affected by mainline capacity constraints out of the San Juan Basin, but these will be relieved when the company's 300 million cubic feet per day San Juan Triangle expansion project is completed before the end of the year.

SIX MONTHS RESULTS

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Six months 1995 net income totaled $42 million, or $1.21 per share, compared with six month 1994 net income of $45 million, or $1.22 per share. The 1995 earnings per share amount reflects a 5 percent decrease in the average common shares outstanding due to EPG's share repurchase program during 1995.

Capital expenditures during the first half of 1995 totaled $52 million, compared to $41 million in 1994. Cash flow from operations was $81 million, compared with $119 million a year ago. The lower 1995 cash flow figure reflects the first quarter cash payment of the litigation special charge which was accrued in 1994's first quarter. Financial statements follow: -0-