El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Natural Gas Company Announces Successful Recontracting of Total Firm Capacity
Houston, Texas, December 10, 1999-El Paso Natural Gas Company, a business unit of El Paso Energy Corporation (NYSE:EPG), announced today the recontracting of all its available firm interstate pipeline capacity totaling a minimum of $37.5 million in revenues for the year 2000. This amount reflects an increase of 7% over the annual average revenues generated from this capacity during the past two years.
During the open bidding process that occurred during September 1999,
Williams Energy Marketing and Trading purchased 99,301 Mcf/d effective
January 1, 2000. The remaining capacity of 1,225,894 Mcf/d was contracted today,
for a one-year term commencing January 1, 2000, to an undisclosed shipper.
Pursuant to Federal Energy Regulatory Commission (FERC) regulations, a four-day open
season is being held to provide an opportunity for other shippers to better the rates in
the contract. The new arrangement also provides the company with potentially greater
revenues, depending upon basis differentials between receipt and delivery points on the
El Paso Natural Gas system over the course of the contract. Details of the
contractual terms can be found on El Paso Natural Gas Company's electronic
bulletin board (EBB).
"We are pleased with the results of the recontracting process, which
demonstrate the growing value of the capacity," said William A. Wise,
president and chief executive officer of El Paso Energy Corporation. "We
designed the contract around a one-year term because we believe the value will continue to
rise during the next year. This contract assures El Paso Natural Gas a reliable
revenue stream during the year 2000, with upside potential. The proceeds from this
contract are consistent with the projections used to establish the company's
financial earnings targets for the coming year."
With over $15 billion in assets, El Paso Energy Corporation provides
comprehensive energy solutions through its strategic business units: El Paso Natural
Gas Company, Tennessee Gas Pipeline Company, Southern Natural Gas Company, El Paso
Field Services Company, El Paso Merchant Energy Company, El Paso Production
Company, and El Paso Energy International Company. The company owns North
America's largest natural gas pipeline system, both in terms of throughput and miles
of pipeline, and has operations in natural gas transmission, gas gathering and processing,
gas and oil production, power generation, merchant energy services, and international
project development. Visit El Paso Energy's web site at www.epenergy.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. While the company makes these statements and projections in
good faith, neither the company nor its management can guarantee that the anticipated
future results will be achieved. Reference should be made to the company's (and its
affiliates') Securities and Exchange Commission filings for additional important
factors that may affect actual results.