This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

El Paso Posts Huge Loss on Charge

A big charge related to the sale of a refinery led El Paso (EP) to post a billion-dollar loss in the second quarter. Its shares sold off on Instinet after the results were released.

The Houston energy company lost $1.19 billion, or $1.99 a share, in the latest quarter, compared with a loss of $45 million, or 8 cents a share, last year. Pro forma to exclude numerous charges and write-downs, the latest-quarter loss was $8 million, or 1 cent a share. Revenue fell to $1.68 billion in the quarter from $1.82 billion a year ago.

Analysts were forecasting pro forma earnings of 13 cents a share, according to Thomson First Call.

The latest quarter included a loss of $916 million, or $1.54 a share, from discontinued operations including a charge of $836 million, or $1.40 a share, to cover the impairment of its petroleum business, primarily related to a decision to sell a refinery in Aruba. The latest quarter also included a charge of $264 million, or 44 cents a share, for the impairment of telecom assets and a legal settlement.

Like many other energy companies El Paso is in the process of extricating itself from the energy trading business. It said that segment continued to post results below expectations in the latest quarter, losing a pro forma $95 million before interest and taxes, compared with $132 million last year. El Paso's merchant energy unit earned $76 million before interest and taxes in the latest quarter, down from $123 million last year.

Among its other business lines, El Paso's pipeline group had second quarter EBIT of $145 million, compared with EBIT of $323 million last year. The latest quarter included $154 million of charges primarily related to a legal settlement.

The company's production unit had second-quarter EBIT of $168 million versus $7 million during the second quarter of 2002. The latest quarter included a $234 million charge associated primarily with Canadian and other international natural gas and oil properties. Second quarter equivalent production declined 25% due largely to sales of proved reserves since early 2002.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs