El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Corporation Sells Remaining Interests in Enterprise Products GP, LLC and Enterprise Products Partners L.P.
HOUSTON, TEXAS, January 14, 2005—El Paso Corporation
(NYSE:EP) announced today that it has sold its remaining interests in Enterprise
Products GP, LLC and Enterprise Products Partners L.P. (Enterprise) to affiliates
of EPCO, Inc. for approximately $425 million. The transaction includes the sale
of El Paso's 9.9-percent membership interest in the general partner of
Enterprise and approximately 13.5 million common units in Enterprise. El Paso
expects to report a gain in excess of $150 million on this sale.
"El Paso has now received total cash proceeds of $1.8 billion from the
sale of its interests in the former GulfTerra Energy Partners, L.P. and related
assets to Enterprise and to EPCO, Inc.," said Doug Foshee, president and
chief executive officer of El Paso Corporation. "It has been a pleasure
to work with the Enterprise management team on these transactions, which will
allow us to exceed the $4-billion mark in assets sold since late 2003."
This sale is an incremental part of El Paso's plan to reduce the company's
debt, net of cash, to approximately $15 billion by year-end 2005. To date, the
company has announced or closed approximately $4.1 billion of asset sales. In
addition, these announced or closed asset sales will eliminate approximately
$1.6 billion of associated non-recourse debt from El Paso's balance sheet.
El Paso Corporation provides natural gas and related energy products in a safe,
efficient, dependable manner. The company owns North America's largest
natural gas pipeline system and one of North America's largest independent
natural gas producers. For more information, visit www.elpaso.com.
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, the ability to implement and achieve our objectives in the long-range
plan, including achieving our debt-reduction targets; our ability to close our
announced asset sales on a timely basis; the uncertainties associated with governmental
regulation; 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.