El Paso Earnings Cheat Sheet: Tops Net Income Estimate

S&P 500 (NYSE:SPY) component El Paso Corporation (NYSE:EP) reported its results for the first quarter. El Paso Corp. is an energy company, provides natural gas (NYSE:UNG) and related energy products.

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El Paso Earnings Cheat Sheet for the First Quarter

Results: Net income for the oil and gas company fell to $62 million (30 cents/share) vs. $388 million (51 cents/share) a year earlier. A decline of 84% from the year earlier quarter.

Actual vs. Wall St. Expectations: EP beat the mean analyst estimate of 28 cents/share. Estimates ranged from 25 cents per share to 31 cents per share.

Quoting Management: “We are off to an excellent start, financially and operationally,” said Doug Foshee, chairman, president, and chief executive officer of El Paso Corporation. “Our initial drilling results in the Wolfcamp Shale are encouraging, and we are excited about the potential for our 138,000 net acre position. This program, along with results in the Eagle Ford Shale and Altamont provide us with many years of profitable oil inventory. In our Pipeline Group, we continue to work towards the completion of what was an $8 billion pipeline backlog in 2008.”

Competitors to Watch: Kinder Morgan Inc (KMI), El Paso Pipeline Partners, L.P. (NYSE:EPB), Kinder Morgan Energy Partners LP (NYSE:KMP), Southern Union Company (NYSE:SUG), Enterprise Products Partners L.P. (NYSE:EPD), Enterprise GP Hldgs. L.P. (EPE), Spectra Energy Partners, LP (NYSE:SEP), Blue Dolphin Energy Co. (NASDAQ:BDCO), BP plc (NYSE:BP), Chesapeake Energy (NYSE:CHK), Copano Energy, L.L.C. (NASDAQ:CPNO), and Atlas Pipeline Partners, L.P. (NYSE:APL)

Stock Performance: Shares of EP are trading at $18.30 as of May 5, 2011 at 9:15 AM ET, unchanged from the previous close.


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