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PANHANDLE EASTERN CORPORATION ANNOUNCES STRONG THIRD-QUARTER EARNINGS

 HOUSTON, Oct. 27 /PRNewswire/ -- Panhandle Eastern Corporation (NYSE: PEL) today reported third-quarter earnings of $25.6 million, or $0.21 per share. This compares with $14.2 million, or $0.13 per share, for the same period last year. The company reported earnings of $71.9 million, or $0.66 per share, in last year's third quarter, which included a one-time adjustment of $57.7 million, or $0.53 per share, from the settlement relating to liquefied natural gas (LNG) project regulatory issues. Third-quarter 1993 results include a net tax provision of approximately $5 million, reflecting primarily the retroactive impact, to the beginning of the year, of the recently enacted federal tax rate increase.
 Consolidated operating income increased to $106.0 million, up 24 percent excluding the 1992 operating income benefit from the LNG project settlement. The increase over 1992 reflects improved results by the company's gas transmission units, primarily Panhandle Eastern Pipe Line Company (PEPL) and Algonquin Gas Transmission Company. PEPL's increase is largely attributable to the elimination of seasonal sales rates effective with the May 1 implementation of restructured services under Federal Energy Regulatory Commission (FERC) Order 636, along with revised rates implemented in November 1992. Algonquin benefited from incremental projects that came on line in 1992.
 "Panhandle Eastern continued to make progress during the third quarter toward its goals of improving its operating performance and advancing its business plans," said Dennis Hendrix, chairman and president. "We remain on track to achieve a strong improvement in operating earnings for the year. The company continues to advance various market expansion projects, such as the recently announced 10-year agreement to provide firm transportation service to The Dayton Power & Light Company," Hendrix said.
 Interest expense for the third quarter of 1993 decreased $13.4 million, compared with the 1992 third quarter, excluding the LNG project settlement in 1992. This decrease reflects the company's continuing commitment to improve its financial position by reducing its outstanding debt.
 For the first nine months of 1993, net income was $129.5 million. Net income was $144.1 million for the same period in 1992, including the $57.7 million from the LNG project settlement impact. Earnings per share were $1.14 for the nine months, compared with $0.80 for the prior year's period, or $1.33 including the LNG project settlement.
 The average number of shares of common stock outstanding increased to 119.3 million shares for the third quarter of 1993, compared with 108.2 million shares for the same period the previous year. This increase was the result of the issuance of 10 million shares of common stock in a June public offering.
 On Oct. 1, the company completed the sale of 74 percent of its interest in Northern Border Partners, L.P., a newly formed master limited partnership. The sale will result in a fourth-quarter pre-tax gain of $48.2 million ($28.7 million after tax) and net cash proceeds of approximately $147 million.
 Panhandle Eastern Corporation, America's natural gas transportation company, operates one of the nation's largest interstate natural gas pipeline systems, providing natural gas transportation and related services to the Midwest and Northeast markets.
 PANHANDLE EASTERN CORPORATION AND SUBSIDIARIES
 Financial Data
 (Unaudited, in millions, except per share amounts)
 Periods ended Three Months Nine Months
 Sept. 30, 1993 1992 1993 1992
 (as restated)(A)(as restated)(A)
 Operating Revenues $ 447.5 $ 568.7(B) $1,633.9 $1,737.3(B)
 Operating Costs
 and Expenses 284.4 335.0 1,057.1 1,100.3
 Depreciation and
 Amortization 57.1 59.4 169.6 179.9
 Operating Income 106.0 174.3 407.2 457.1
 Other Income, Net 9.9 0.3 28.1 (7.0)
 Interest Expense 65.6 61.5(B) 212.7 214.1(B)
 Income bef. Income Tax 50.3 113.1 222.6 236.0
 Income Tax 24.7(C) 41.2 93.1(C) 91.9
 Net Income $ 25.6 $ 71.9(B) $ 129.5 $ 144.1(B)
 Average Common
 Shares Outstanding 119.3 108.2 113.4 108.2
 Earnings Per
 Common Share $ 0.21 $ 0.66 $ 1.14 $ 1.33
 Operating Income (Loss)
 by Business Group
 TETCO $ 63.8 $ 64.1 $ 211.2 $ 212.3
 Algonquin 12.2 7.0 42.2 34.7
 PEPL 20.4 (1.9) 91.1 51.6
 Trunkline 6.5 21.2(B) 37.3 41.1(B)
 Other 1.1 1.8 4.1 4.3
 Gas Transmission 104.0 92.2 385.9 344.0
 LNG Project (1.2) 76.0(B) (1.3) 92.6(B)
 Centana Energy
 Corporation 2.1 2.4 15.2 11.2
 Parent, Other &
 Eliminations 1.1 3.7 7.4 9.3
 Consolidated Operating
 Income $ 106.0 $ 174.3 $ 407.2 $ 457.1
 Capital Expenditures $ 100 $ 88 $ 207 $ 179
 Equity as a Percentage
 of Capitalization 43 pct. 35 pct. 43 pct. 35 pct.
 Common Stock Prices
 High $ 27-1/4 $ 19-3/8 $ 27-1/4 $ 19-3/8
 Low 23 15-3/4 16-3/4 12-7/8
 Quarterly Close 25-1/8 18-5/8 25-1/8 18-5/8
 Average Daily Volume,
 thousands of shares 231 286 275 287
 (A) Restated to reflect implementation of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes."
 (B) Includes benefits for the LNG project settlement of $88.6 million in operating revenues ($19.9 million - Trunkline, $68.7 million-LNG Project) and $17.5 million in reduced interest expense ($57.7 million after tax).
 (C) Includes a net tax provision of approximately $5 million, primarily reflecting the retroactive impact of the federal tax rate increase.
 Operating Data
 (Unaudited)
 Three Months Nine Months
 Periods ended Percent Percent
 Sept. 30, 1993 1992 Change 1993 1992 Change
 Natural Gas Pipeline Volumes,
 Billion Cubic Feet
 Market-area Transports
 TETCO 210 167 26 668 570 17
 Algonquin 39 38 3 169 171 (1)
 PEPL 131 135 (3) 424 434 (2)
 Trunkline 79 80 (1) 277 257 8
 Eliminations (27) (33) (18) (93) (134) (31)
 Total 432 387 12 1,445 1,298 11
 Supply-area Transports
 TETCO 30 38 (21) 86 118 (27)
 PEPL 7 11 (36) 38 40 (5)
 Trunkline 44 24 83 119 96 24
 Eliminations --- --- --- (1) (2) (50)
 Total 81 73 11 242 252 (4)
 Total Transports 513 460 12 1,687 1,550 9
 Sales
 TETCO --- 18 (100) 34 72 (53)
 Algonquin --- --- --- 2 19 (89)
 PEPL --- 6 (100) 22 18 22
 Trunkline 16 23 (30) 66 70 (6)
 Eliminations --- (1) (100) --- (9) (100)
 Total 16 46 (65) 124 170 (27)
 Total Deliveries 529 506 5 1,811 1,720 5
 Market Transport Rates (A)
 TETCO --- --- --- $0.59 $0.69 (14)
 Aq?uin --- --- --- 0.29 0.23 26
 PEPL --- --- --- 0.59(B)0.51(B) 16
 Trunkline --- --- --- 0.31 0.30 3
 (A) Authorized rates per million British thermal unit pursuant to FERC tariffs.
 (B) Excludes gathering charges.
 -0- 10/27/93
 /CONTACT: John P. Barnett, media relations, 713-627-4072, or Brad Porlier, investor relations, 713-627-4600, or 800-347-3636, both of Panhandle Eastern/
 (PEL)


CO: Panhandle Eastern Corporation ST: Texas IN: OIL SU: ERN

TM -- NY028 -- 7188 10/27/93 10:36 EDT
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Date:Oct 27, 1993
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