El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Corporation Announces Filing of Registration Statement in Connection with Pipeline MLP
HOUSTON, Aug 31, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- El Paso Corporation (NYSE: EP)
announced today that its wholly owned subsidiary, El Paso Pipeline Partners,
L.P., filed a registration statement with the Securities and Exchange
Commission relating to its proposed initial public offering of common units.
Application will be made to list the common units, which represent limited
partner interests in El Paso Pipeline Partners, on the New York Stock Exchange
under the symbol "EPB".
El Paso Pipeline Partners will own and operate natural gas transportation
pipelines and storage assets consisting of Wyoming Interstate Company, Ltd., a
wholly-owned interstate pipeline transportation business primarily located in
Wyoming and Colorado, and 10 percent interests in two interstate pipeline
transportation businesses: Colorado Interstate Gas Company, located in the
U.S. Rocky Mountains, and Southern Natural Gas Company, located in the
southeastern United States. Combined, these three interstate pipeline
businesses consist of more than 12,300 miles of pipeline and associated
storage facilities with aggregate underground working natural gas storage
capacity of 89 billion cubic feet.
El Paso Pipeline Partners anticipates offering 25,000,000 common units in
the initial public offering, representing a 32.2 percent limited partner
interest. Following this offering, El Paso Corporation will own the 2 percent
general partner interest, all of the incentive distribution rights, a 65.8
percent limited partner interest in El Paso Pipeline Partners as well as the
remaining 90 percent interest in each of Colorado Interstate Gas Company and
Southern Natural Gas Company.
At or prior to the closing of the offering, Southern Natural Gas Company
will transfer to El Paso Corporation its equity investment in Citrus Corp. and
its wholly-owned subsidiaries Southern LNG Inc. and Elba Express Company, LLC.
These assets will not become part of El Paso Pipeline Partners.
The underwriters are expected to be granted a 30-day option to purchase up
to 3,750,000 additional common units if they sell more than 25,000,000 common
units in the offering. El Paso Corporation's limited partner interest would
be reduced to 60.9 percent if the underwriters exercise their option to
purchase additional common units in full.
Lehman Brothers, Citi, Goldman, Sachs & Co. and UBS Investment Bank will
act as joint book-running managers of the offering. El Paso Pipeline
Partners' proposed offering of common units will be made only by means of a
prospectus. A copy of the preliminary prospectus relating to this offering may
be obtained, when available, from the offices of Lehman Brothers Inc., c/o
Broadridge Financial Services, Prospectus Fulfillment, 1155 Long Island
Avenue, Edgewood, NY 11717; by e-mail at Qiana.Smith@Broadridge.com; or by fax
at (631) 254-7140.
A registration statement relating to these securities has been filed with
the Securities and Exchange Commission but has not yet become effective. These
securities may not be sold, nor may offers to buy be accepted, prior to the
time the registration statement becomes effective. This communication does not
constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of these securities in any state or jurisdiction in which
such offer, solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or jurisdiction.
El Paso Corporation provides natural gas and related energy products in a
safe, efficient, dependable manner. The company owns North America's largest
natural gas pipeline system and one of North America's largest independent
natural gas producers. For more information, visit http://www.elpaso.com.
Cautionary Statement Regarding Forward-Looking Statements
This release includes forward-looking statements and projections about El
Paso Corporation, made in reliance on the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. El Paso Corporation has made
every reasonable effort to ensure that the information and assumptions on
which these statements and projections are based are current, reasonable, and
complete. However, a variety of factors could cause actual results to differ
materially from the projections, anticipated results or other expectations
expressed in this release, including, without limitation, due to the fact that
our business plans may change as circumstances warrant, securities of El Paso
Pipeline Partners, L.P. may not ultimately be offered, we may not be able to
raise the planned amount of capital even if the offering of securities is
completed, the planned assets of El Paso Pipeline Partners, L.P. may
materially change and we may not be able to complete the proposed actions on
the timetable indicated. No assurance can be given as to the value of El Paso
Pipeline Partners, L.P., the price at which its securities may trade, or
whether a liquid market for its securities will develop or be maintained. In
addition, the El Paso Corporation and El Paso Pipeline Partners, L.P. will be
subject to the other risk factors described in the El Paso Corporation's (and
its affiliates') Securities and Exchange Commission filings. While El Paso
Corporation makes these statements and projections in good faith, neither El
Paso Corporation nor its management can guarantee that anticipated future
results will be achieved. Reference must be made to those filings for
additional important factors that may affect actual results. El Paso
Corporation assumes no obligation to publicly update or revise any
forward-looking statements made herein or any other forward-looking statements
made by El Paso Corporation, whether as a result of new information, future
events, or otherwise.
SOURCE El Paso Corporation