El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Announces Asset Sales
HOUSTON, TEXAS, April 1, 2002—El Paso Corporation (NYSE:EP) today reported that it has closed oil and gas
property sales totaling $525 million in the first quarter of 2002. The sales
cover 527 billion cubic feet of natural gas proved reserves located in East
Texas and South Texas. On a natural gas equivalent basis, the sales reflect
consideration of $1.00 per thousand cubic feet (Mcfe), but when the future
development costs of proved undeveloped reserves are considered, the purchase
price is $1.40 per Mcfe.
"These transactions are another important step in implementing the
balance sheet enhancement plan that we announced in December of last year,"
said William A. Wise, chairman, president and chief executive officer of El Paso. "We
expect to close the $750 million sale of midstream assets to El Paso Energy Partners (NYSE:EPN)
in the first week of April, and we are in
advanced discussions for the sale of another $500 million of oil and gas
properties. Given the excellent progress to date, we are on track to complete
the vast majority of our $2.25 billion of assets sales by mid year."
The El Paso Corporation model-strong in assets, market expertise, valuation
skills, and risk discipline-has proven itself year after year, resulting in a
company with both financial strength and a reputation for integrity. El Paso has
core businesses in natural gas production, gathering and processing, and
transmission, as well as in international project development, energy financing,
power generation, liquefied natural gas transport and receiving, and merchant
energy services. The company is committed to developing new energy sources and
technology to supply energy to communities around the world. For more
information, please 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.
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.