El Paso Corporation (NYSE: EP) today announced that it has taken
important steps related to the planned spinoff of its E&P business
before year-end 2011. Today, El Paso filed its initial Form 10 with the
U.S. Securities and Exchange Commission. This filing provides
information about the spinoff and provides a detailed look at all
aspects of the E&P business.
El Paso also announced that the new company will be named EP Energy
Corporation, and it will be listed on the NASDAQ stock exchange under
the ticker symbol EPE.
"We're excited about the creation of two outstanding publicly traded
companies through the spinoff of our E&P business," said Doug Foshee,
chairman, president, and chief executive officer of El Paso Corporation.
"We are also excited about the new name for our E&P company -- EP
Energy. The new name leverages the equity we have built in the El Paso
brand, and it speaks directly to what our E&P business does so well:
finding and producing oil and natural gas."
Brent Smolik, who will become president and chief executive officer of
EP Energy, said, "While our name will change, many things will not,
including the fundamental pillars of our E&P strategy. We have more than
10 years of drilling inventory that we expect will deliver significant
growth in oil and condensate revenues. We will continue to focus on
maintaining a significant drilling inventory of repeatable programs,
being a leader in safe and responsible energy development, and driving
high-end performance across our operations."
Leadership and Governance "El Paso Corporation and EP Energy will move
forward with two outstanding boards," added Foshee. "By populating each
board from the existing El Paso board, we take advantage of a history of
good governance; we ensure each board has seasoned, knowledgeable
members, and we maintain continuity for our shareholders."
The boards of directors expected to be in place for El Paso Corporation
and EP Energy upon completion of the planned spinoff are shown below.
Bios for the directors are available at http://www.elpaso.com/investor/board.shtm.
El Paso Corporation Douglas L. Foshee - Chairman J. Michael Talbert -
Lead Director Juan Carlos Braniff Anthony W. Hall, Jr. Thomas R. Hix
Ferrell P. McClean Timothy J. Probert Robert F. Vagt John L. Whitmire
EP Energy Corporation Douglas L. Foshee - Non-executive Chairman
David W. Crane Robert W. Goldman Ferrell P. McClean Steven J. Shapiro
Brent J. Smolik Robert F. Vagt
El Paso Corporation provides natural gas and related energy products in
a safe, efficient, and dependable manner. The company owns North
America's largest interstate natural gas pipeline system, one of North
America's largest independent exploration & production companies and an
emerging midstream business. El Paso owns a 42 percent limited partner
interest, and the 2 percent general partner interest in El Paso Pipeline
Partners, L.P. El Paso Corporation's Board of Directors has granted
initial approval of a plan to separate the company into two publicly
traded companies through a tax-free spinoff of its exploration and
production business to shareholders before year-end 2011. For more
information, visit www.elpaso.com.
Cautionary Statement Regarding Forward-Looking Statements This release
includes certain forward-looking statements and projections. 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,
including, without limitation, our ability to execute our strategy of
selling assets to El Paso Pipeline Partners, L.P.; our ability to pay
dividends declared; changes in unaudited and/or unreviewed financial
information; volatility in, and access to, the capital markets; our
ability to implement and achieve objectives in our 2011 plan and
guidance, including achieving our earnings and cash flow targets; our
ability to complete the announced tax-free spin-off of our E&P business;
the effects of any changes in accounting rules and guidance; our ability
to meet production volume targets in our Exploration and Production
segment; the uncertainty of estimating proved reserves and unproved
resources, the future level of service and capital costs, the
availability and cost of financing to fund our future exploration and
production operations; the success of our drilling programs with regard
to proved undeveloped reserves and unproved resources; our ability to
successfully identify new midstream opportunities; our ability to comply
with the covenants in our various financing documents; our ability to
obtain necessary governmental approvals for proposed pipeline and E&P
projects and our ability to successfully construct and operate such
projects; the risks associated with recontracting of transportation
commitments by our pipelines; regulatory uncertainties associated with
pipeline rate cases; actions by the credit rating agencies; the
successful close of our financing transactions; our ability to
successfully execute our liability management programs at desired
prices; credit and performance risk of our lenders, trading
counterparties, customers, vendors and suppliers; changes in commodity
prices and basis differentials for oil, natural gas, and power; general
economic and weather conditions in geographic regions or markets served
by the company and its affiliates, or where operations of the company
and its affiliates are located, including the risk of a global recession
and negative impact on natural gas demand; the uncertainties associated
with governmental regulation; political and currency risks associated
with international operations of the company and its affiliates;
competition; and other factors described in the company's (and its
affiliates') Securities and Exchange Commission filings. While the
company makes these statements and projections in good faith, neither
the company nor its management can guarantee that anticipated future
results will be achieved. Reference must be made to those filings for
additional important factors that may affect actual results. The company
assumes no obligation to publicly update or revise any forward-looking
statements made herein or any other forward-looking statements made by
the company, whether as a result of new information, future events, or
otherwise.
