El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
2-Oct-2002
El Paso Corporation's Investment Grade Credit Rating MaintainedHOUSTON, Oct 2, 2002 /PRNewswire-FirstCall via COMTEX/ -- El Paso Corporation
(NYSE: EP) responded to today's announcement by Moody's Investors Service to
maintain El Paso's investment grade credit rating while reducing the company's
senior unsecured debt rating to Baa3.
El Paso is disappointed that Moody's rating action appears to be influenced by
the market uncertainty created by the recent proposed decision by a Federal
Energy Regulatory Commission Administrative Law Judge. El Paso believes that
this decision is fundamentally flawed and will be overturned. El Paso has made
significant progress in strengthening its financial profile and
creditworthiness. In the past 10 months, the company has issued $2.5 billion of
equity securities, completed or announced $2.5 billion of asset sales,
eliminated $4 billion of rating triggers and implemented a $300-million cost
reduction program. The company continues to pursue additional asset sales as
discussed during our second quarter earnings conference call on August 8, 2002.
El Paso's core assets continue to perform as planned and provide a predictable
and stable source of cash flow. The company is confident that its continued
focus on liquidity management, a solid balance sheet, and ongoing asset sales
will further strengthen its financial position.
The company's liquidity position remains strong, as set forth in the following
table, which has been updated as of September 30, 2002.
Sources ($ billions)
Available cash $1.3
364-day bank facility 3.0
Multi-year bank facility 1.0
Subtotal sources $5.3
Uses
Commercial paper outstanding ($0.3)
Letters of credit under bank facility (0.5)
Subtotal uses ($0.8)
Net available liquidity $4.5
El Paso Corporation is the leading provider of natural gas services and the
largest pipeline company in North America. The company has leading positions in
natural gas production, gathering and processing, and transmission, as well as
liquefied natural gas transport and receiving, petroleum logistics, power
generation, and merchant energy services. El Paso Corporation, rich in assets
and fully integrated across the natural gas value chain, is committed to
developing new supplies and technologies to deliver energy. For more
information, visit www.elpaso.com .
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements and projections, made in
reliance on the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. 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, changes in commodity prices for oil, natural gas, and power; general
economic and weather 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; the uncertainties associated with governmental
regulation; the uncertainties associated with regulatory proceedings, appeals
from regulatory proceedings, and any related litigation; political and currency
risks associated with international operations of the company and its
affiliates; inability to realize anticipated synergies and cost savings
associated with mergers and acquisitions or restructurings on a timely basis;
difficulty in integration of the operations of previously acquired companies;
competition; the successful implementation of the Balance Sheet Enhancement
Program and the Strategic Repositioning Plan; 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 should 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.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X72780742
SOURCE El Paso Corporation
CONTACT: communications and government affairs, Norma F. Dunn, Senior
Vice President, +1-713-420-3750, or fax, +1-713-420-3632, or investor
relations, Bruce L. Connery, Vice President, +1-713-420-5855, or fax,
+1-713-420-4417, both of El Paso Corporation
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010205/DAM044LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
URL: http://www.elpaso.com
http://www.prnewswire.com
Copyright (C) 2002 PR Newswire. All rights reserved.
|
El Paso Corp.
