El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Cites Minimal Exposure to Enron; Earnings Outlook Remains Strong
HOUSTON, TEXAS, November 28, 2001
El Paso Corporation (NYSE:EPG) today responded to market concerns about its financial exposure to Enron following the downgrades of Enron's debt today. Over the past several weeks, the company has systematically reduced its trading with Enron. Due to Enron's loss of investment grade status, any new business will have to be supported by cash collateral. El Paso foresees no material disruptions in the energy trading markets resulting from today's downgrades or the potential of an Enron bankruptcy filing. "El Paso's maximum natural gas and power net trading exposure to Enron is approximately $50 million," said William A. Wise, chairman, president, and chief executive officer of El Paso. "Our earnings outlook remains strong, and we do not expect any adverse earnings impact from Enron's difficulties. In addition, our merchant energy business is gaining market share by providing customers with reliable fuel supply services and high-quality risk management products throughout North America."
El Paso Corporation is committed to meeting energy needs throughout the United States and the world, with operations that span the energy value chain from wellhead to electron. El Paso is involved in every segment of the natural gas industry, including production, gathering and processing, and transmission. The company also provides merchant energy services, international project development, energy financing, power generation, and telecommunications services. El Paso is focused on speeding the development of new energy sources to address critical energy shortages across the globe. For more information, please visit www.elpaso.com.