El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Energy International Company to Acquire Interest in East Asia Power Resources Corporation
Houston, Texas, December 14, 1998-El Paso Energy International Company, a business unit of El Paso Energy
Corporation (NYSE:EPG), announced today that it has agreed to acquire an interest in East
Asia Power Resources Corporation, a publicly traded company in the Philippines.
El Paso Energy International will invest $70 million to acquire an equity stake and a
convertible loan in East Asia Power Resources. Closing is scheduled for early January
East Asia owns and operates three power generation facilities in the Philippines with a
total generating capacity of 265 megawatts. The company also has options to acquire two
power generation facilities in the Philippines with an aggregate generating capacity of
123 megawatts. Electric power generated by the facilities is supplied to a diversified
base of customers including NPC, the state-owned utility, private distribution companies
and industrial users. East Asia Power has one of the best operating and environmental
records in the region.
"This project establishes El Paso Energy International as a key participant
in the Philippine power market," said John D. Hushon, president of El Paso
Energy International. "East Asia Power is the second largest independent power owner
and operator in the Philippines. Thus, the acquisition generates immediate critical mass
in the Philippine power market and provides a springboard for future growth opportunities
through both greenfield development and acquisitions. The acquisition will be earnings
accretive to El Paso Energy immediately."
With over $10 billion in assets, El Paso Energy Corporation provides energy
solutions through five business units: Tennessee Gas Pipeline Company, El Paso
Natural Gas Company, El Paso Field Services Company, El Paso Energy Marketing
Company, and El Paso Energy International Company. The company owns the nation's
only integrated coast-to-coast natural gas pipeline system and has operations in
interstate natural gas transmission, gas gathering and processing, energy marketing, and
international infrastructure development.
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 companies have 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. While the companies make these statements and projections in good faith,
neither the companies nor their managements can guarantee that the anticipated future
results will be achieved. Reference should be made to the companies' (and their
affiliates') Securities and Exchange Commission filings for additional important
factors that may affect actual results.