El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Merchant Energy Company Announces Power Finance Group, Names New Executives
HOUSTON, TEXAS, July 24, 2000-El Paso Merchant
Energy Company, a business unit of El Paso Energy Corporation (NYSE:EPG),
announced today that it is expanding its commercial platform in the electric
power industry by forming EP Power Finance, L.L.C. In the process, El Paso
Merchant Energy Company has hired a team of four executives to head up the unit.
Managing directors are Mark Condon, former senior vice president of Heller
Financial, Inc.; Jim Jewitt, former president of ESBI Energy Company; Scott
Lamoreaux, former vice president of Stratum Group L.P.; and Gar Seifullin,
former senior vice president of Heller Financial, Inc.
"We are very excited about this highly qualified group of executives
joining El Paso Energy," said Ralph Eads, executive vice president of El Paso Energy. "The qualifications and experience these individuals bring to
El Paso Energy will substantially enhance our existing skill base and expand our
financial services capabilities. The formation of EP Power Finance furthers our
commitment to providing a seamless portfolio of capital and commodity market
offerings to our customers and partners."
The new organization expands the financial services platform of El Paso
Energy and complements its EnCap Investments unit. EP Power Finance primarily
will focus on power and power-related opportunities in the North American energy
marketplace. El Paso Energy now offers innovative capital products from wellhead
to wire as deregulation accelerates the convergence of the gas and power
EP Power Finance will provide subordinated debt and structured financial
products to developers and acquirers of merchant power generation assets. The
group will offer debt capital with a higher risk/return profile for transactions
that range from greenfield development projects to the acquisition of
multi-asset generation portfolios. These investment professionals will work with
clients to develop financial structures that manage risk and optimize the return
on deployed capital.
With over $19 billion in assets, El Paso Energy Corporation provides
comprehensive energy solutions through its strategic business units: Tennessee
Gas Pipeline Company, El Paso Natural Gas Company, Southern Natural Gas
Company, El Paso Merchant Energy Company, El Paso Energy International Company,
El Paso Field Services Company, and El Paso Production 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, merchant energy services, power generation, international project
development, gas gathering and processing, and gas and oil production. On May 5,
the stockholders of both El Paso Energy and The Coastal Corporation
overwhelmingly voted in favor of merging the two organizations. The combined
company will have assets of $35 billion and be one of the world's leading
integrated energy companies. The merger is expected to close in the fourth
quarter of this year, concurrent with the completion of regulatory reviews.
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.