HOUSTON—Pipeline operator El Paso Corp. reported a big third-quarter loss Wednesday, mostly because of a loss related to its investment in a natural gas pipeline that links Wyoming to Oregon.
The company, which has a deal to be acquired by Kinder Morgan, said it lost $368 million, or 48 cents per share, for the quarter ended Sept. 30. That compares with a profit of $133 million, or 19 cents per share, last year.
Results in the most recent quarter included a $475 million charge to write down the value of El Paso's investment in the $3.7 billion Ruby pipeline.
Revenue rose to $653 million from $519 million in the third quarter of 2010.
Excluding some one-time losses, the company reported adjusted earnings of 18 cents per share, compared with 22 cents per share a year ago.
The results were way under what Wall Street was expecting. Analysts polled by FactSet forecast a profit of 26 cents per share on revenue of $1.25 billion.
Production volumes increased by 8 percent in the quarter.
Last month, Kinder Morgan said it will buy El Paso Corp. for $20.7 billion, creating the nation's largest natural gas pipeline operator.
El Paso's stock rose 13 cents to $24.75 in morning trading.
Also Wednesday, El Paso's limited partnership El Paso Pipeline Partners LP reported third-quarter results that improved from a year earlier, driven by acquisitions. The partnership earned $95 million, or 46 cents per unit, up 61 percent from $59 million, or 39 cents per unit, a year earlier. Revenue rose to $339 million from $331 million in the third quarter of 2010.
The partnership also raised its dividend by 20 percent to 49 cents. The dividend will be paid Nov. 14.