El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Pipeline Partners Increases Quarterly Cash Distribution
HOUSTON, TX, Jan 21, 2011 (MARKETWIRE via COMTEX) --
El Paso Pipeline Partners, L.P. (NYSE: EPB) today announced that the Board of Directors of its general partner has declared a $0.44 per unit quarterly cash distribution for the fourth quarter of 2010, or $1.76 per unit on an annualized basis. This distribution represents a more than 22 percent increase from the $0.36 per unit paid for the fourth quarter 2009 and a more than 7 percent increase from the $0.41 per unit paid for the third quarter 2010 as the partnership benefits from its acquisition completed in the fourth quarter of 2010.
The distribution will be paid February 15, 2011, on all outstanding units to holders of record as of the close of business on February 1, 2011.
Upon payment of the quarterly cash distribution payment for the fourth quarter of 2010, the financial tests required for the conversion of all subordinated units into common units will have been satisfied. As a result, the 27,727,411 subordinated units held by affiliates of El Paso Corporation will be converted on February 15, 2011 on a one-for-one basis into common units effective January 3, 2011. The conversion does not impact the amount of cash distribution paid or the total number of the Partnership's outstanding units.
El Paso Pipeline Partners, L.P. is a Delaware limited partnership formed by El Paso Corporation to own and operate natural gas transportation pipelines and storage assets. El Paso Corporation owns a 49 percent limited partner interest and 2 percent general partner interest in the partnership. El Paso Pipeline Partners, L.P. owns Wyoming Interstate Company (WIC), Southern LNG Company, L.L.C. (SLNG), El Paso Elba Express Company, L.L.C. (Elba Express), a 60 percent interest in Southern Natural Gas Company (SNG), and a 58 percent interest in Colorado Interstate Gas Company (CIG). WIC and CIG are interstate pipeline systems serving the Rocky Mountain region, SLNG owns the Elba Island LNG storage and regasification terminal near Savannah, Georgia, and both Elba Express and SNG are interstate pipeline systems serving the southeastern region of the United States.
Note to Non-United States Investors This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent of El Paso Pipeline Partners' distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, El Paso Pipeline Partners' distributions to Non-United States investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Investor and Media Relations
SOURCE: El Paso Pipeline Partners