El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Corporation Announces Sale of East Coast Power Interests for $456 Million
HOUSTON, April 16 /PRNewswire-FirstCall/ -- El Paso Merchant Energy, a
business unit of El Paso Corporation (NYSE: EP), today announced it executed
an agreement to sell all of the common interests in East Coast Power, L.L.C.
to GS Linden Power Holdings LLC, a subsidiary of The Goldman Sachs Group,
Inc., for $456 million in cash. Approximately $600 million of non-recourse,
project-level debt will remain outstanding at East Coast Power, L.L.C. and its
subsidiaries. The sale is subject to customary closing conditions.
East Coast Power L.L.C. owns the natural gas-fired, 940-megawatt Linden
cogeneration facility located adjacent to Staten Island in Linden, New Jersey.
The facility supplies contracted power to the New York City market and a local
refinery. Merchant power is also supplied to the New York City Zone J market
and the PJM market. The sale of East Coast Power also includes the rights to
additional generation and transmission development opportunities at the Linden
This sale supports 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.
With this announcement, El Paso has now either closed or has non-core sales
under contract for approximately $2.2 billion for 2003, or approximately
63 percent of its asset sales goal of $3.4 billion for calendar year 2003.
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 production, pipelines, 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; the successful implementation of the settlement related to the
Western Energy Crisis; material and adverse impacts from our proxy contest
with Selim Zilkha/Oscar Wyatt; actions by the credit rating agencies; the
successful close of financing transactions, including an extension of our bank
facilities; 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. 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.
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 Web site 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
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 a Schedule 14A filed by El Paso with the
Securities and Exchange Commission on February 18, 2003.
SOURCE El Paso Corporation
/CONTACT: Communications and Government Affairs - Norma F. Dunn, Senior
Vice President, +1-713-420-3750, fax, +1-713-420-3632, or Investors - Bruce L.
Connery, Vice President, +1-713-420-5855, fax, +1-713-420-4417, both of El
Paso Corporation; or Joele Frank or Dan Katcher of Joele Frank, Wilkinson
Brimmer Katcher, +1-212-355-4449, fax, +1-212-355-4554, for El Paso
/Web site: http://www.elpaso.com /
CO: El Paso Merchant Energy; El Paso Corporation; East Coast Power, L.L.C.;
GS Linden Power Holdings LLC; Goldman Sachs Group, Inc.
IN: OIL UTI
-- NYW056 --
3859 04/16/2003 08:02 EDT http://www.prnewswire.com