EL PASO CORP/DE

CIK:0001066107|SEC Filings

Earnings Per Share

3 Months Ended

Mar. 31, 2012

5. Earnings Per Share

Basic and diluted earnings per common share were as follows for the quarters ended March 31:


	2012				2011
	Basic		Diluted		Basic		Diluted
	(In millions, except per share amounts)
Net income attributable to El Paso Corporation	$	86	$	86	$	62	$	62

Weighted average common shares outstanding		767		767		714		714
Effect of dilutive securities:
Stock-based awards		—		14		—		10
Convertible preferred stock		—		—		—		44

Weighted average common shares outstanding and dilutive securities		767		781		714		768

Basic and diluted earnings per common share:
Net income attributable to El Paso Corporation	$	0.11	$	0.11	$	0.09	$	0.08

We exclude potentially dilutive securities from the determination of diluted earnings per share (as well as their related income statement impacts) when their impact on net income attributable to El Paso Corporation per common share is antidilutive. Potentially dilutive securities consist of stock based awards (employee stock options, restricted stock and performance shares), convertible preferred stock and trust preferred securities. In March 2011, we converted our preferred stock to common stock. For the quarters ended March 31, 2012 and 2011, our trust preferred securities and certain of our employee stock options were antidilutive.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash flows from operating activities
Net income	$ 149	$ 136
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion and amortization	330	254
Ceiling test charges	62
Deferred income tax expense	69	26
Earnings from unconsolidated affiliates, adjusted for cash distributions	(25)	(18)
Loss on debt extinguishment		41
Other non-cash income items	15	(64)
Asset and liability changes	(84)	156
Net cash provided by operating activities	516	531
Cash flows from investing activities
Capital expenditures	(509)	(1,089)
Repayment of notes receivable	37	1
Other	15	(1)
Net cash used in investing activities	(457)	(1,089)
Cash flows from financing activities
Net proceeds from issuance of debt and other financing obligations	540	806
Payments to retire long-term debt and other financing obligations	(526)	(794)
Proceeds from transfer of assets to unconsolidated affiliate	89
Net proceeds from issuance of noncontrolling interests	0	457.0
Net proceeds from issuance of preferred stock of subsidiary		30
Dividends paid	(8)	(16)
Distributions to noncontrolling interest holders	(58)	(39)
Distributions to holders of preferred stock of subsidiary		(5)
Other	15	14
Net cash provided by financing activities	52	453
Change in cash and cash equivalents	111	(105)
Cash and cash equivalents
Beginning of period	194	347
End of period	$ 305	$ 242

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Current assets
Cash and cash equivalents	$ 305	$ 194
Accounts receivable
Customer, net of allowance of $2 in 2012 and $2 in 2011	313	331
Affiliates	41	36
Other	158	192
Notes receivable from affiliates	113	85
Materials and supplies	174	175
Assets from price risk management activities	283	282
Deferred income taxes	74	127
Other	154	155
Total current assets	1,615	1,577
Property, plant and equipment, at cost
Pipelines	19,939	19,931
Oil and natural gas properties, at full cost	22,373	22,070
Other	528	529
Total property, plant and equipment, gross	42,840	42,530
Less accumulated depreciation, depletion and amortization	23,569	23,360
Total property, plant and equipment, net	19,271	19,170
Other long-term assets
Investments in unconsolidated affiliates	2,742	2,739
Assets from price risk management activities	26	20
Other	724	808
Total other non-current assets	3,492	3,567
Total assets	24,378	24,314
Accounts payable
Trade	344	415
Affiliates	13	12
Other	374	409
Short-term financing obligations, including current maturities	361	362
Liabilities from price risk management activities	129	140
Asset retirement obligations	57	39
Accrued interest	233	184
Other	425	587
Total current liabilities	1,936	2,148
Long-term financing obligations, less current maturities	12,620	12,605
Other long-term liabilities
Liabilities from price risk management activities	275	284
Deferred income taxes	633	612
Other	1,632	1,530
Total other non-current liabilities	2,540	2,426
Commitments and contingencies (Note 8)
El Paso Corporation stockholders' equity:
Common stock, par value $3 per share; authorized 1,500,000,000 shares; issued 788,493,799 shares in 2012 and 787,316,201 shares in 2011	2,366	2,362
Additional paid-in capital	5,392	5,364
Accumulated deficit	(2,207)	(2,293)
Accumulated other comprehensive loss	(785)	(796)
Treasury stock (at cost); 14,394,293 shares in 2012 and 15,081,177 shares in 2011	(270)	(283)
Total El Paso Corporation stockholders' equity	4,496	4,354
Noncontrolling interests	2,786	2,781
Total equity	7,282	7,135
Total liabilities and equity	$ 24,378	$ 24,314