8-K 1 h77368e8vk.htm FORM 8-K e8vk
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: November 3, 2010
(LOGO)
SOUTHERN NATURAL GAS COMPANY
(Exact name of Registrant as specified in its charter)
         
Delaware
(State or other jurisdiction of
incorporation or organization) 		  1-2745
(Commission File Number) 		  63-0196650
(I.R.S. Employer Identification No.)
El Paso Building
1001 Louisiana Street
Houston, Texas 77002
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (713) 420-2600
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

 

Item 2.02   Results of Operations and Financial Condition.
     On November 3, 2010, El Paso Pipeline Partners, L.P. (EPB) announced earnings results for the quarter ended September 30, 2010, and included certain information about us, including the following:
El Paso Pipeline Partners, L.P.
Earnings from SNG
(In millions)
(Unaudited)
                                 
    Quarter Ended     Nine Months Ended  
    September 30,     September 30,  
    2010     2009     2010     2009  
    (In millions)     (In millions)  
SNG
                                
EBIT
   $ 76     $ 61     $ 243     $ 188  
Interest and debt expense, net
     (16 )     (16 )     (48 )     (48 )
Affiliated interest income
     —       —       1       1  
 
                        
Net income
     60       45       196       141  
Equity in earnings from SNG*
   $ 27.1     $ 11.2     $ 62.2     $ 35.7  
*Equity in earnings reflects our 25 percent interest in SNG prior to the effect of the announced June 2010 transaction. An additional 20 percent interest in SNG was acquired in June 2010 and, as a result, EPB owns an aggregate 45 percent general partner interest in SNG.
     Our management uses earnings before interest expense and income taxes (EBIT) as a measure to assess the operating results and effectiveness of our business, which consists of consolidated operations as well as an investment in an unconsolidated affiliate. We believe EBIT is useful to investors because it allows them to evaluate more effectively our operating performance using the same performance measure analyzed internally by our management. We define EBIT as net income adjusted for (i) income taxes, (ii) interest and debt expense, and (iii) affiliated interest income. We exclude interest and debt expense from this measure so that investors may evaluate our operating results without regard to our financing methods. EBIT may not be comparable to measurements used by other companies. Additionally, EBIT should be considered in conjunction with net income and other performance measures such as operating income or operating cash flows.

 

 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
         
  SOUTHERN NATURAL GAS COMPANY
 		  
  By:   /s/ John R. Sult    
    John R. Sult   
    Executive Vice President and Chief Financial Officer (Principal Financial Officer)   
 
Dated: November 3, 2010