PanEnergy third-quarter net income and earnings per share increase over 15 percent.HOUSTON--(BUSINESS WIRE)--Oct. 17, 1996-- PanEnergy Corp (NYSE NYSESee: New York Stock Exchange :PEL) today reported third-quarter net income increased 17 percent to $86.1 million, compared with $73.6 million last year. Earnings per share increased to $0.57, compared with $0.49 per share for the same period last year. For the first nine months of the year, net income rose 19 percent to $267.7 million, or $1.78 per share. This compares with 1995 net income of $225.2 million, or $1.51 per share. "PanEnergy had an excellent third quarter during which the company continued to gain momentum," said Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic , president and chief executive officer. "Based on year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. performance, the company is raising its previously announced 10 percent earnings growth target to 15 percent for the year. Total return to shareholders through September September: see month. was 27 percent, almost double the Standard & Poor's 500 Index." "Completing the formation of PanEnergy Trading and Market Services, L.L.C. with Mobil Corporation, creating one of the largest marketers in the country, was a significant event during the quarter. PanEnergy also closed the majority of its acquisition of Mobil Corporation's interest in certain natural gas gathering, processing and related assets during the quarter, completing the transaction in early October October: see month. ," Anderson continued. "The Maritimes and Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. Pipeline project continues to move forward, with both the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. and United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. portions of the project recently filed with regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. ," Anderson said. "The company's electric business continues to grow rapidly. Electricity volumes traded were twice the second quarter's volumes and eight times greater than the first quarter. The company has also entered into a partnership to build and jointly market the generation of a proposed 250-megawatt gas-fired gas-fired adj → de gas gas-fired adj → au gaz gas-fired adj (heater etc) → Gas- generation plant in southeastern south·east n. 1. Abbr. SE The direction or point on the mariner's compass halfway between due south and due east, or 135° east of due north. 2. An area or region lying in the southeast. 3. Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. ."BUSINESS UNIT RESULTS The Natural Gas Transmission Group's earnings before interest and tax rose 6 percent to $148.7 million, primarily from expanded operations that resulted in a 7 percent increase in volumes. -- Texas Eastern Transmission Corporation (TETCO TETCO Texas Eastern Transmission Corporation TETCO Thermal Energy Transfer Corporation ), which serves Mid-Atlantic Adj. 1. mid-Atlantic - of a region of the United States generally including Delaware; Maryland; Virginia; and usually New York; Pennsylvania; New Jersey; "mid-Atlantic states" middle Atlantic gas markets, reported third-quarter earnings before interest and tax increased $14.5 million to $82.8 million, primarily from higher revenues from new pipeline expansion projects and lower third-party transportation costs. -- Algonquin Algonquin (ălgŏng`kwĭn, -kĭn), small group of Native North Americans. The name of the Algonquian branch of the Algonquian-Wakashan linguistic stock (to which they belonged) is derived from their name (see Native American languages). Gas Transmission Company, which serves New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. markets, reported third-quarter earnings before interest and tax increased 8 percent to $19 million, primarily because of revenues from new firm service to an electric power plant on Cape Cod Cape Cod, narrow peninsula of glacial origin, 399 sq mi (1,033 sq km), SE Mass., extending 65 mi (105 km) E and N into the Atlantic Ocean. It is generally flat, with sand dunes, low hills, and numerous lakes. , as well as lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . -- Panhandle Eastern Panhandle Eastern Pipe Line Company, LP is a natural gas pipeline which brings natural gas from the panhandle region of Oklahoma east through the Midwest to supply Indiana and Ohio. It is owned by Panhandle Energy - Southern Union Gas Company. Its FERC code is 28. Pipe Line Company (PEPL PEPL Plasmadynamics and Electric Propulsion Laboratory PEPL Plane Earth Path Loss ), serving Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians markets, reported third-quarter earnings before interest and tax of $46.3 million. A net decrease related to regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. settlements in 1996, compared with 1995, was partially offset by cost reductions. -- Trunkline A trunkline is a designation given over a given transportation route, such as over a set of roads, and is identified as such for the purpose of providing ease with respect to guiding transportation along the route over which it covers. Gas Company, also serving Midwest markets, reported third-quarter earnings before interest and tax of $0.6 million. Earnings were significantly lower than last year, primarily as a result of the recognition of accelerated lease expense, which was partially offset by lower expenses and higher transportation revenues. The Energy Services Group's earnings before interest and tax rose $5.2 million to $37.5 million, primarily from increased natural gas liquids (NGL NGL - A dialect of IGL. ) prices in addition to higher natural gas, NGL and trading volumes Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. . The increased volumes resulted primarily from the acquisition of Mobil Corporation's natural gas gathering and processing assets and the combination of PanEnergy and Mobil's trading operations. Energy Services includes the Field Services, Gas and Power Services and Crude Oil groups. -- Field Services, which provides gathering, aggregation and processing services, generated $8.8 million of higher earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income from higher revenues and throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. resulting from expansion projects, the Mobil asset acquisition and strong NGL prices. These improvements were partially offset by the $8.1 million gain on the sale of Seagull seagull a noisy, gregarious bird that frequents the seashore. Web-footed, hook-billed, white with gray wings. Member of the family Laridae and of the genus Larus. System assets in 1995 and higher gas prices. Third-quarter earnings before interest and tax rose to $28.4 million. NGL production grew 54 percent to 82.1 thousand barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. , and gathering and processing volumes increased 50 percent to 3 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. British thermal units British thermal unit, abbr. Btu, unit for measuring heat quantity in the customary system of English units of measurement, equal to the amount of heat required to raise the temperature of one pound of water at its maximum density [which occurs at a temperature of 39. per day (TBtu/d). -- Gas and Power Services, which comprises the activities of the company's natural gas marketing, power marketing and related services and risk management business units, reported earnings before interest and tax which were more than double last year's third quarter. The $3.6 million increase, which raised earnings before interest and tax to $6.3 million, was primarily due to substantially higher gas and electric volumes and slightly improved margins. Total marketed gas volumes increased 81 percent to 5.6 TBtu/d. Earnings for the quarter reflect, for the first time, a $2.2 million minority interest for Mobil's investment in PanEnergy Trading and Market Services, L.L.C. -- Crude Oil, which markets crude oil and operates crude oil and natural gas liquids pipelines, reported earnings before interest and tax increased to $2.8 million, primarily because of higher marketing margins due to higher crude prices. PanEnergy Corp (NYSE:PEL) -- one of North America's leading energy services companies -- operates more than 37,000 miles of natural gas pipeline, delivering gas primarily to Northeast and Midwest markets. The company is also one of the nation's largest natural gas gatherers and processors and markets liquefied petroleum gases liquefied petroleum gas or LPG, mixture of gases, chiefly propane and butane, produced commercially from petroleum and stored under pressure to keep it in a liquid state. and related energy services throughout the United States and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Through its recently formed venture with Mobil, PanEnergy is one of the leading marketers of natural gas and electricity in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The company also has other energy interests worldwide.
Financial Data (Unaudited)
-----------------------------------------------------------------
PanEnergy Corp
and Subsidiaries Periods Ended September 30
---------------------------------------
Three Months Nine Months
------------------ -------------------
Millions, except as noted 1996 1995 1996 1995
-----------------------------------------------------------------
Operating Revenues $1,832.0 $1,133.7 $4,980.7 $3,649.1
Operating Costs and
Expenses 1,589.7 905.1 4,211.2 2,944.5
Depreciation and
Amortization 73.1 70.0 217.3 208.3
------------------ -------------------
Operating Income 169.2 158.6 552.2 496.3
Equity in Earnings
of Unconsolidated
Affiliates 13.4(a) 11.0 26.5 44.3
Other Income, Net
of Deductions 13.9 12.8 23.9 9.9
------------------ -------------------
Earnings Before Interest
and Tax 196.5 182.4 602.6 550.5
Interest Expense 57.1 59.4 171.2 176.4
------------------ -------------------
Earnings Before Minority
Interest and Income Tax 139.4 123.0 431.4 374.1
Minority Interest 2.2 - 2.2 -
Income Tax 51.1 49.4 161.5 148.9
------------------ -------------------
Net Income $ 86.1 $ 73.6 $ 267.7 $ 225.2
================== ===================
Average Common Shares
Outstanding 151.0 149.9 150.8 149.5
Earnings Per Common Share $ 0.57 $ 0.49 $ 1.78 $ 1.51
-----------------------------------------------------------------
Capital and Investment
Expenditures $ 313.3 $ 162.4 $ 432.1 $ 298.3
-----------------------------------------------------------------
Debt to Capitalization
Ratio 49% 52% 49% 52%
-----------------------------------------------------------------
Common Stock Prices,
per share
High $ 35 1/4 $ 27 1/2 $ 35 1/4 $ 27 1/2
Low 31 23 3/8 26 3/4 18 3/4
Close 34 5/8 27 1/4 34 5/8 27 1/4
Average Daily Trading
Volume, thousands of
shares 362 240 333 309
-----------------------------------------------------------------
Certain data has been restated to conform to the current
reporting presentation.
(a) Includes earnings from National Methanol Company
($5.1 million), Midland Cogeneration Venture Limited
Partnership ($6.4 million), Northern Border Partners, L.P.
($1.1 million) and TEPPCO Partners, L.P. ($1.6 million).
Financial Data, cont. (Unaudited)
-----------------------------------------------------------------
PanEnergy Corp
and Subsidiaries Periods Ended September 30
---------------------------------------
Three Months Nine Months
----------------- -------------------
Millions 1996 1995 1996 1995
-----------------------------------------------------------------
Operating Statements
by Business Group
Natural Gas Transmission
Operating revenues $ 369.6 $ 374.4 $1,150.0 $1,146.2
Operating costs
and expenses 179.9 180.9 551.5 553.2
Depreciation and
amortization 56.1 57.3 171.1 173.0
Equity in earnings
of unconsolidated
affiliates 1.1 1.2 3.2 6.1
Other income, net
of deductions 14.0 3.1 19.0 (0.2)
----------------- -------------------
Earnings Before
Interest and Tax 148.7 140.5 449.6 425.9
----------------- -------------------
Energy Services
Operating revenues 1,476.2 759.7 3,838.8 2,517.0
Operating costs
and expenses 1,424.3 725.7 3,674.7 2,414.9
Depreciation and
amortization 15.7 10.7 41.6 29.9
Equity in earnings
of unconsolidated
affiliates 0.7 0.8 1.5 1.6
Other income, net
of deductions 0.6 8.2 3.2 8.6
----------------- -------------------
Earnings Before
Interest and Tax 37.5 32.3 127.2 82.4
----------------- -------------------
Other Operations 10.3(a) 9.6 25.8 42.2
----------------- -------------------
Consolidated Earnings
Before Interest and Tax $ 196.5 $ 182.4 $ 602.6 $ 550.5
-----------------------------------------------------------------
Financial Data, cont. (Unaudited)
-----------------------------------------------------------------
PanEnergy Corp
and Subsidiaries Periods Ended September 30
---------------------------------------
Three Months Nine Months
----------------- -------------------
Millions 1996 1995 1996 1995
-----------------------------------------------------------------
Earnings Before Interest
and Tax by Business Group
Natural Gas Transmission
TETCO $ 82.8 $ 68.3 $ 247.9 $ 225.0
Algonquin 19.0 17.6 53.7 57.8
PEPL 46.3 49.8 116.1 116.4
Trunkline 0.6 4.8 31.9 26.7
----------------- -------------------
Total Natural Gas
Transmission 148.7 140.5 449.6 425.9
----------------- -------------------
Energy Services
Field Services 28.4 27.7 81.9 64.8
Gas and Power Services 6.3 2.7 37.7 11.2
Crude Oil 2.8 1.9 7.6 6.4
----------------- -------------------
Total Energy Services 37.5 32.3 127.2 82.4
----------------- -------------------
Other Operations 10.3(a) 9.6 25.8 42.2
----------------- -------------------
Consolidated Earnings
Before Interest and Tax $ 196.5 $ 182.4 $ 602.6 $ 550.5
-----------------------------------------------------------------
(a) Includes losses from the liquefied natural gas project
of $1.3 million. Operating Data (Unaudited)
-----------------------------------------------------------------
PanEnergy Corp
and Subsidiaries Periods Ended September 30
--------------------------------------
Three Months Nine Months
------------------ ------------------
% %
1996 1995 Change 1996 1995 Change
-----------------------------------------------------------------
Natural Gas Transmission
Volumes, Trillion British
Thermal Units
Market Area
TETCO 230 209 10 895 801 12
Algonquin 66 66 - 233 242 (4)
PEPL 126 119 6 472 443 7
Trunkline 118 94 26 391 288 36
Eliminations (16) (9) 78 (40) (35) 14
------------------ ------------------
Total 524 479 9 1,951 1,739 12
------------------ ------------------
Supply Area
TETCO 45 40 13 106 92 15
PEPL 7 10 (30) 26 34 (24)
Trunkline 23 29 (21) 72 86 (16)
------------------ ------------------
Total 75 79 (5) 204 212 (4)
------------------ ------------------
Total Volumes 599 558 7 2,155 1,951 10
================== ==================
Summary by Pipeline
TETCO 275 249 10 1,001 893 12
Algonquin 66 66 - 233 242 (4)
PEPL 133 129 3 498 477 4
Trunkline 141 123 15 463 374 24
Eliminations (16) (9) 78 (40) (35) 14
------------------ ------------------
Total Volumes 599 558 7 2,155 1,951 10
================== ==================
Market Transport Rates(a)
TETCO $0.59 $0.63 (6)
Algonquin 0.27 0.25 8
PEPL 0.62 0.62 -
Trunkline 0.41 0.41 -
-----------------------------------------------------------------
Operating Data, cont. (Unaudited)
-----------------------------------------------------------------
PanEnergy Corp
and Subsidiaries Periods Ended September 30
---------------------------------------
Three Months Nine Months
------------------- ------------------
% %
1996 1995 Change 1996 1995 Change
-----------------------------------------------------------------
Energy Services Volumes
Field Services
Natural gas gathered/
processed, TBtu/d(b) 3.0 2.0 50 2.7 1.8 50
Natural gas liquids
production, MBbl/d(c) 82.1 53.3 54 67.8 53.2 27
Gas and Power Services
Natural gas marketed,
TBtu/d 5.6 3.1 81 4.7 3.4 38
Electricity
marketed, GWh(d) 1,361 203 570 2,058 227 807
Crude Oil
Crude oil pipeline
volumes, MBbl/d 65.5 80.4 (19) 68.0 79.0 (14)
Natural gas liquids
pipeline volumes,
MBbl/d 19.5 15.9 23 19.6 16.6 18
-----------------------------------------------------------------
(a) Authorized rates per million British thermal unit pursuant to
FERC tariffs.
(b) Trillion British thermal units per day.
(c) Thousand barrels per day.
(d) Gigawatt hours.
CONTACT: PanEnergy Corp. Media Relations: John P. Barnett Barnett as a personal name can refer to:
or Investor Relations Investor relations The process by which the corporation communicates with its investors. : Brad Porlier, 713/627-4600 or 800/347-3636 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion