El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Corporation Announces Highlights of February 6 Analyst Meeting
HOUSTON, TEXAS, February 6, 2001-El Paso Corporation (NYSE:EPG),
the largest and most broadly based natural gas company in the world,
resumed its annual analyst meeting in Houston today at 8:00 a.m. Central
Standard Time (CST). Copies of the slides being presented as well as a
live audio Web cast are available on the company's Web site at www.epenergy.com/investor.
El Paso Merchant Energy expects to achieve greater than 25-percent
earnings before interest and taxes (EBIT) growth over the next several
years. Domestically, the recent volatility in energy prices has greatly
expanded the demand for risk management services and long-term energy
supply solutions. An even greater opportunity is the rapidly growing
liquefied natural gas (LNG) market. The company has established a clear
leadership position in the U.S. with merchant capacity at three of the
four marine LNG terminals in the country. El Paso Merchant Energy is
expanding this position by developing additional marine terminals in the
U.S. and Mexico. The international fundamentals for LNG are also
excellent, and the company intends to build a leading merchant LNG
presence in Europe and Asia as well as in North America.
Technical leadership and a deep development-drilling inventory are
fueling El Paso Production Company's plans to increase production by 15
percent in 2001. The company has an extensive acreage position and
high-impact opportunities in the Texas Coastal Plain, the Rockies, the
Gulf of Mexico, and other key U.S. supply basins. El Paso Production plans
to spend $1.8 billion while generating approximately $300 million of free
cash flow during the year.
The outlook for El Paso's Pipeline Group and Field Services segment is
also positive. Significant infrastructure must be developed for the U.S.
natural gas market to reach its 30 trillion cubic feet per year potential
by 2010. The Pipeline Group has $2.5 billion of supply and market projects
in various stages of development. El Paso Field Services intends to
continue its rapid growth primarily through its master limited
partnership, El Paso Energy Partners (NYSE: EPN). The partnership has an
annual goal of acquiring $500 million of steady cash flow, fee-based
assets either directly from El Paso Corporation or from third parties.
These transactions will increase the distributions for the partnership's
unitholders while accelerating El Paso's earnings growth and deleveraging
its balance sheet.
El Paso has a $4.7-billion capital program planned for 2001 with 71
percent allocated to non-regulated businesses. The program includes $3.0
billion of growth capital and $1.7 billion of maintenance capital. The
company expects to generate approximately $3.9 billion in total EBIT and
approximately $3.5 billion in after-tax cash flow.
El Paso Corporation, the largest and most broadly based natural gas
company in the world, spans the energy value chain from wellhead to
electron. With an enterprise value in excess of $50 billion, El Paso is a
leader in every phase of the natural gas industry. The company owns and
operates a significant portion of the North American natural gas delivery
grid, operates the fastest growing, most sophisticated energy merchant
group, and is the nation's third largest natural gas producer. El Paso, a
leader in real options valuation and risk management techniques, is
focused on maximizing shareholder value, transforming existing markets,
and speeding the development of new markets. Visit El Paso at
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