El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Corporation Announces It Has Exceeded Fifty Percent of Its 2003 Non-Core Asset Sales GoalHOUSTON, Mar 27, 2003 /PRNewswire-FirstCall via COMTEX/ -- El Paso Corporation
(NYSE: EP) today announced that it has completed or signed additional asset
sales that result in transactions totaling over $1.7 billion since January 1 of
this year. This total represents more than 50 percent of the company's asset
sales goal of $3.4 billion for calendar year 2003.
-- The company announced the sale of its asphalt business to Trigeant
EP, Ltd. for an estimated purchase price of $63 million, including
approximately $28 million for the business's inventory. The
consideration includes a $23 million secured note, with the balance
in cash at closing. The transaction involves the sale of an asphalt
refinery in Alabama, terminaling facilities, and associated sales
and marketing divisions, plus assumption of certain Kansas Asphalt
operations under a long-term lease. El Paso acquired the Asphalt
business through its merger with The Coastal Corporation in 2001.
-- El Paso sold its 17.8-percent interest in the ECK Generating project
and affiliated businesses to a Swiss energy company. The project,
located near Prague, Czech Republic, is a 343-megawatt power
generating station that provides approximately 3 percent of the
country's total electricity demand. Financial terms were not
-- El Paso completed the sale of its remaining 2.1-percent equity
interest in the Alliance Pipeline to affiliates of Enbridge Inc.
(NYSE: ENB) and Fort Chicago Energy Partners L.P. (Toronto: FCE.UN)
for $24.4 million. In November 2002, Fort Chicago and Enbridge
acquired the majority of El Paso's interests in the Alliance
Pipeline and all of El Paso's interest in the Aux Sable natural gas
liquids plant and Alliance Canada Marketing.
-- El Paso also closed the sale of its Drumheller, Alberta area oil and
natural gas assets, production facilities, gas plants and
undeveloped lands to Canadian Superior Energy Inc. for
These asset sales support El Paso's previously announced 2003 five-point
business plan, which includes exiting non-core businesses quickly but prudently
and strengthening and simplifying the balance sheet while maximizing liquidity.
El Paso Corporation is the leading provider of natural gas services and the
largest pipeline company in North America. The company has core businesses in
pipelines, production, midstream services, and power. 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, our ability to attract and retain qualified members of the Board of
Directors; the successful recruitment and retention of a qualified CEO; the
successful implementation of the 2003 operational and financial plan; actions by
the credit rating agencies; the successful close of financing transactions; our
ability to successfully exit the energy trading business; our ability to divest
of certain non-core assets; 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; political and currency risks associated with
international operations of the company and its affiliates; inability to realize
anticipated synergies and cost savings associated with restructurings and
divestitures on a timely basis; difficulty in integration of the operations of
previously acquired companies, competition, 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.
Additional Important Information
Prior to its 2003 annual meeting, El Paso will furnish to its shareholders El
Paso's definitive proxy statement relating to this meeting, together with a
WHITE proxy card. Shareholders are strongly advised to read this proxy statement
when it becomes available, as it will contain important information.
Shareholders will be able to obtain El Paso's proxy statement, any amendments or
supplements to the proxy statement and any other documents filed by El Paso with
the Securities and Exchange Commission for free at the Internet website
maintained by the Securities and Exchange Commission at www.sec.gov . Copies of
the proxy statement and any amendments and supplements to the proxy statement
will also be available for free at El Paso's Internet Web site at www.elpaso.com
or by writing to El Paso Corporation, Investor Relations, PO Box 2511, Houston,
TX 77252. In addition, copies of the proxy materials may be requested by
contacting our proxy solicitor, MacKenzie Partners, Inc. at (800) 322-2885
Toll-Free or by email at email@example.com .
To the extent that individual customers, independent industry researchers,
financial analysts, or El Paso commissioned research, are quoted herein, it is
El Paso's policy to use reasonable efforts to verify the source and accuracy of
the quote. El Paso has not, however, sought or obtained the consent of the
quoted source to the use of such quote as proxy soliciting material. This
document may contain expressions of opinion and belief. Except as otherwise
expressly attributed to another individual or entity, these opinions and beliefs
are the opinions and beliefs of El Paso.
Information regarding the names, affiliation and interests of individuals who
may be deemed participants in the solicitation of proxies of El Paso's
shareholders is contained in Schedule 14A filed by El Paso with the Securities
and Exchange Commission on February 18, 2003, as amended by a Schedule 14A filed
by El Paso on March 18, 2003.
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; or Joele Frank or Dan Katcher,
both of Joele Frank, Wilkinson Brimmer Katcher, +1-212-355-4449, or fax,
+1-212-355-4554, both for El Paso Corporation
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