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PANHANDLE EASTERN REPORTS FIRST QUARTER EARNINGS

 PANHANDLE EASTERN REPORTS FIRST QUARTER EARNINGS
 HOUSTON, April 15 /PRNewswire/ -- Panhandle Eastern Corporation


(NYSE: PEL) today reported net income of $60.6 million for the first quarter of 1992, compared with $40.7 million for the same period last year. Earnings per share were $0.56 for the first quarter, up almost 25 percent over the prior year's $0.45 per share.
 "Our efforts to revive the company's earnings are achieving steady, positive results," said Dennis Hendrix, chairman and president. "Texas Eastern Transmission Corporation (TETCO) and Algonquin Gas Transmission Company posted strong first quarter performances, while Panhandle Eastern Pipe Line Company (PEPL) and Trunkline Gas Company continued to make progress toward meeting their major goals. Recent cold weather has reduced levels of natural gas in the storage facilities, which should improve operating flexibility and volumes moved later in the year."
 Hendrix continued, "Panhandle Eastern is pleased the Federal Energy Regulatory Commission (FERC) has now issued its pipeline service restructuring rule, Order 636. This action establishes the basis for the industry to complete the transition that has been under way for a decade. We believe Panhandle Eastern, with its well-positioned pipeline network, will be able to provide its customers with the industry's most extensive transportation related services under the new operating environment. Each of Panhandle Eastern's four pipelines plans to make filings with FERC later this year to implement Order 636."
 Consolidated first quarter operating income increased to $195.5 million, compared with $179.7 million for the same period last year. TETCO and Algonquin had higher operating income primarily because of increased interruptible transportation volumes and TETCO's lower operating expenses due to cost containment measures.
 PEPL and Trunkline, serving the Midwest markets, reported lower operating income for the first quarter due primarily to rate designs that did not reflect the current market environment and lower throughput volumes on Trunkline. PEPL's new rate design, filed in September of 1991, with an effective date of April 1, 1992, reflects its current business mix and incorporates the straight fixed-variable rate design prescribed by FERC in Order 636. Trunkline plans to implement a new rate design later this year.
 Interest expense decreased $11.7 million as a result of debt reduction and repayment of the company's higher-interest subordinated debentures during 1991.
 The average number of shares of common stock outstanding increased to 108.2 million shares for the first three months of the year, compared with 91.3 million shares for the same period last year.
 Panhandle Eastern Corporation operates one of the nation's largest interstate natural gas pipeline systems, providing natural gas to the Midwest and Northeast markets.
 PANHANDLE EASTERN CORPORATION AND SUBSIDIARIES
 Financial Data
 ($ in millions, except per share amounts -- unaudited)
 Period ended Three months
 March 31, 1992 1991
 Operating Revenues $ 681.1 $ 839.3
 Operating Costs and Expenses 433.1 601.5
 Depreciation and Amortization 52.5 58.1
 Operating Income 195.5 179.7
 Other Income, Net (5.7) 4.9
 Interest Expense 75.6 87.3
 Income before Income Tax 114.2 97.3
 Income Tax 53.6 56.6
 Net Income $ 60.6 $ 40.7
 Average Shares Outstanding 108.2 91.3
 Earnings Per Share $ 0.56 $ 0.45
 Operating Income
 by Business Group
 TETCO $ 91.8 $ 74.0
 Algonquin 18.6 12.5
 PEPL 50.0 55.0
 Trunkline 15.9 20.0
 Other 1.1 1.2
 Gas Transmission 177.4 162.7
 LNG Project 8.8 3.8
 Centana 7.5 10.7
 Parent and Other 1.8 2.5
 Consolidated Operating Income $ 195.5 $ 179.7
 Capital Expenditures $ 38 $ 43
 Equity as a Percentage of
 Capitalization (in percents) 37 29
 Common Stock Prices
 High $ 15-7/8 $ 15-1/2
 Low 13-1/2 9-7/8
 Quarterly Close 14-5/8 14-5/8
 Average Daily Volume,
 thousands of shares 287 318
 Operating Data
 (unaudited)
 Period ended Three months
 March 31, 1992 1991
 Percent Change
 Natural Gas Pipeline
 Volumes, Bcf
 Sales
 TETCO 35 92 (62)
 Algonquin 17 36 (53)
 PEPL 8 28 (71)
 Trunkline 24 23 4
 Eliminations (3) (33) (91)
 Total 81 146 (45)
 Market-area Transports(A)
 TETCO 218 167 31
 Algonquin 79 49 61
 PEPL 146 127 15
 Trunkline 89 97 (8)
 Eliminations (56) (58) (3)
 Total 476 382 25
 Total Market Area 557 528 5
 Supply-area Transports(A)
 TETCO 37 33 12
 PEPL 24 13 85
 Trunkline 38 43 (12)
 Eliminations (1) (1) --
 Total 98 88 11
 Total Deliveries 655 616 6
 Northeast Degree Days
 Operating 2,944 2,737 8
 Normal 3,087 3,057 1
 Midwest Degree Days
 Operating 2,628 2,731 (4)
 Normal 3,059 3,023 1
 Natural Gas Sales Rates(B)
 TETCO 100 percent Load Factor Rate $2.77 $2.93 (6)
 Commodity Rate 2.34 2.51 (7)
 Purchased Gas Cost 1.94 2.09 (7)
 Algonquin 100 percent Load
 Factor Rate 3.36 3.19 5
 Commodity Rate 2.86 2.67 7
 Purchased Gas Cost 2.55 2.49 2
 PEPL 100 percent Load Factor Rate 3.92 2.96 32
 Commodity Rate 3.07 2.19 40
 Purchased Gas Cost 2.02 1.23 64
 Trunkline 100 percent Load
 Factor Rate 2.96 3.16 (6)
 Commodity Rate 2.47 2.64 (6)
 Purchased Gas Cost 2.20 2.37 (7)
 Market Transport Rates(B)
 TETCO $ 0.78 $ 0.78 --
 Algonquin 0.23 0.31 (26)
 PEPL 0.72 0.71 1
 Trunkline 0.37 0.43 (14)
 (A) Certain amounts for prior year have been restated to conform to the current reporting presentation.
 (B) Authorized rates per million British thermal unit pursuant to FERC tariffs.
 -0- 4/15/92
 /CONTACT: John P. Barnett, 713-627-4072, or Dorothy M. Ables, (investors), 713-627-4600, both of Panhandle Eastern/
 (PEL) CO: Panhandle Eastern Corp. ST: Texas IN: OIL SU: ERN


SH -- NY089 -- 8831 04/15/92 15:20 EDT
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