El Paso Posts Loss on Calif. Settlement
Natural-gas pipeline owner El Paso Corp. had a fourth-quarter loss of $1.74 billion as the company recorded costs to settle lawsuits alleging market manipulation during California’s energy crisis.
The loss was $2.92 a share, contrasted with net income of $375 million, or 72 cents, in 2001’s last quarter, El Paso said. Results included $644 million in after-tax costs for last month’s California settlement and $685 million for asset write-downs and other one-time expenses.
El Paso is taking charges now to stem future losses as the company’s board faces a proxy challenge from former Coastal Corp. Chairman Oscar Wyatt and other investors, an analyst said. Chief Executive William Wise stepped down last month after an energy-trading collapse pulled El Paso’s share price to a record low.
The stock rose 15 cents to $6.05 on the New York Stock Exchange.
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