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PANHANDLE EASTERN REPORTS SECOND QUARTER EARNINGS

 PANHANDLE EASTERN REPORTS SECOND QUARTER EARNINGS
 HOUSTON, July 22 /PRNewswire/ -- Panhandle Eastern Corporation


(NYSE: PEL) today reported net income of $11.6 million for the second quarter of 1992, compared with a loss of $1.8 million for the same period last year. Earnings per share were $0.11 for the second quarter, compared with a loss of $0.02 per share the previous year.
 "Operating income, when compared with the prior year's period, increased for the sixth consecutive quarter since the company was reorganized in January 1991," said Dennis Hendrix, chairman and president. "The company continues to make significant progress on a number of fronts. In the second quarter, Texas Eastern Transmission Corporation (TETCO) became the first pipeline company to file its Order 636 restructuring plans with the Federal Energy Regulatory Commission; Algonquin Gas Transmission Company (Algonquin) followed TETCO's lead with a filing on July 2.
 "Additionally, Panhandle Eastern Pipe Line Company (PEPL) and Trunkline Gas Company (Trunkline) achieved an important settlement that, upon FERC approval, will resolve a number of long-standing issues dealing with the company's liquefied natural gas project," Hendrix said.
 Consolidated second quarter operating income increased almost 45 percent to $98.6 million. The company's TETCO and Algonquin units achieved higher operating income, primarily attributable to increased transportation volumes due to extended cool weather in the Northeast and higher storage injections, as well as earnings from new expansion projects.
 PEPL's operating income benefited primarily from higher volumes, a new rate design, and rate-refund adjustments from an earlier rate case. PEPL's new rates, which became effective April 1, reflect its current business mix and incorporate the straight fixed-variable rate structure prescribed by FERC in Order 636. Trunkline reported lower operating income due primarily to a positive rate adjustment recorded in 1991.
 Other income, net, decreased for the quarter, primarily as a result of non-recurring charges of $7.4 million for asset dispositions.
 Second quarter interest expense decreased $12.1 million as a result of debt reduction and lower interest rates.
 Net income for the first half of 1992 was $72.2 million, compared with 1991 first-half net income of $38.9 million. Earnings per share were $0.67 for the six months, up 60 percent over the prior year's $0.42 per share.
 The average number of shares of common stock outstanding increased to 108.2 million for the first half of the year, compared with 91.7 million for the same period last year, primarily as a result of the issuance of 13.8 million shares of common stock in a 1991 public offering.
 Panhandle Eastern Corporation operates one of the nation's largest interstate natural gas pipeline systems that provides natural gas to the Midwest and Northeast markets.
 PANHANDLE EASTERN CORPORATION AND SUBSIDIARIES
 Financial Data
 (dollars in millions, except per share amounts unaudited)
 Periods ended Three Months Six Months
 June 30, 1992 1991 1992 1991
 Operating Revenues $ 484.7 $ 480.2 $1,165.8 $1,319.5
 Operating Costs and Expenses 332.2 354.1 765.3 955.6
 Depreciation and Amortization 53.9 57.9 106.4 116.0
 Operating Income 98.6 68.2 294.1 247.9
 Other Income, Net (2.0) 13.7 (7.7) 18.6
 Interest Expense 74.8 86.9 150.4 174.2
 Income (Loss) Before Income Tax 21.8 (5.0) 136.0 92.3
 Income Tax (Benefit) 10.2 (3.2) 63.8 53.4
 Net Income (Loss) $ 11.6 $ (1.8) $ 72.2 $ 38.9
 Average Shares Outstanding 108.2 92.1 108.2 91.7
 Earnings (Losses) Per Share $ 0.11 $ (0.02) $ 0.67 $ 0.42
 Operating Income
 by Business Group
 TETCO $ 67.4 $ 51.8 $ 159.2 $ 125.8
 Algonquin 10.6 8.8 29.2 21.3
 PEPL 2.6 (17.5) 52.6 37.5
 Trunkline 3.2 9.0 19.1 29.0
 Other 1.4 1.3 2.5 2.5
 Gas Transmission 85.2 53.4 262.6 216.1
 LNG Project 8.3 5.7 17.1 9.5
 Centana 1.3 6.0 8.8 16.7
 Parent, Other & Eliminations 3.8 3.1 5.6 5.6
 Consolidated Operating Income $ 98.6 $ 68.2 $ 294.1 $ 247.9
 Capital Expenditures $ 53 $ 32 $ 91 $ 75
 Equity as a Percentage
 of Capitalization (in percents) 36 29 36 29
 Common Stock Prices, per share
 High $ 17-1/4 $ 14-3/4 $ 17-1/4 $ 15-1/2
 Low 12-7/8 10-3/4 12-7/8 9-7/8
 Quarterly Close 15-5/8 11-5/8 15-5/8 11-5/8
 Average Daily Volume,
 thousands of shares 287 198 287 257
 Operating Data
 (unaudited)
 Periods ended
 June 30, Three Months Percent Six Months Percent
 1992 1991 change 1992 1991 change
 Natural Gas Pipeline
 Volumes, Bcf
 Sales
 TETC 19 29 (34) 54 121 (55)
 Algonquin 2 1 100 19 37 (49)
 PEPL 4 9 (56) 12 37 (68)
 Trunkline 23 21 10 47 44 7
 Eliminations (5) (6) (17) (8) (39) (79)
 Total 43 54 (20) 124 200 (38)
 Market-area Transports (A)
 TETCO 185 153 21 403 320 26
 Algonquin 54 38 42 133 87 53
 PEPL 153 113 35 299 241 24
 Trunkline 88 80 10 177 177 -
 Eliminations (45) (35) 29 (101) (93) 9
 Total 435 349 25 911 732 24
 Total Market Area 478 403 19 1,035 932 11
 Supply-area Transports (A)
 TETCO 43 32 34 80 65 23
 PEPL 5 10 (50) 29 23 26
 Trunkline 34 30 13 72 73 (1)
 Eliminations (1) (2) (50) (2) (3) (33)
 Total 81 70 16 179 158 13
 Total Deliveries 559 473 18 1,214 1,090 11
 Northeast Degree Days
 Operating 863 577 50 3,807 3,314 15
 Normal 805 805 - 3,892 3,855 1
 Midwest Degree Days
 Operating 589 350 68 3,217 3,081 4
 Normal 452 452 - 3,511 3,475 1
 Natural Gas Sales Rates (B)
 TETCO 100 percent Load Factor Rate $3.00 2.94 2
 Commodity Rate 2.58 2.52 2
 Purchased Gas Cost 2.18 2.10 4
 Algonquin 100 percent Load Factor Rate 2.88 3.40 (15)
 Commodity Rate 2.39 2.88 (17)
 Purchased Gas Cost 2.29 2.71 (15)
 PEPL 100 percent Load Factor Rate 3.50 2.49 41
 Commodity Rate 2.80 2.04 37
 Purchased Gas Cost 2.19 1.64 34
 Trunkline 100 percent Load Factor Rate 2.90 3.07 (6)
 Commodity Rate 2.42 2.58 (6)
 Purchased Gas Cost 2.20 2.37 (7)
 Market Transport Rates (B)
 TETCO $0.78 $0.80 (3)
 Algonquin 0.23 0.31 (26)
 PEPL 0.52 0.36 44
 Trunkline 0.30 0.33 (9)
 (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- 7/22/92
 /CONTACT: John P. Barnett, 713-627-4072, or Brad Porlier (investors), 713-627-4600, both of Panhandle Eastern/
 (PEL) CO: Panhandle Eastern Corporation ST: Texas IN: OIL SU: ERN


SH -- NY084 -- 2012 07/22/92 14:22 EDT
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