El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Corporation Announces Agreement to Sell Mexican Pipeline Assets
HOUSTON, TX, Feb 24, 2010 (MARKETWIRE via COMTEX) -- El Paso Corporation (NYSE: EP) announced today that it has entered into an agreement to sell its interest in Mexican pipeline and compression assets to Sempra Pipelines & Storage, a unit of Sempra Energy (NYSE: SRE), for $300 million. The sale includes El Paso's 50 percent interest in a joint venture with the Mexican state oil company, Pemex, that owns various pipeline assets in northern Mexico close to the Texas border, as well as a 100-percent owned pipeline that originates at the Arizona border. The transaction is expected to close in the second quarter of 2010 and is subject to lender consent, as well as Mexican regulatory approval.
"We are pleased to announce the sale of these assets as a part of our 2010 plan," said Doug Foshee, chairman, president and chief executive officer of El Paso Corporation. "Today's announcement, along with other progress across the board, demonstrates that our 2010 plan is off to a great start."
Foshee added, "And while we're exiting this joint venture, Pemex will continue to be an important customer of our U.S. pipelines. Our relationship is longstanding and highly valued."
El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest natural interstate gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit www.elpaso.com.
Cautionary Statement Regarding Forward-Looking Statements
This release includes certain forward-looking statements and projections. The company 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, our ability to implement and achieve our objectives in our 2010 plan; our ability to obtain all necessary lender consents and regulatory approvals; our ability to satisfy all other conditions precedent in the sales agreement with Sempra; our ability to complete planned asset sales; general economic conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company 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. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.
El Paso Corporation
Office: (713) 420-5855
Office: (713) 420-6828
SOURCE: El Paso Corporation