SOURCE: El Paso Corporation

El Paso Corporation

August 11, 2011 08:00 ET

El Paso Corporation Advances Planned E&P Spinoff, Names New Company

HOUSTON, TX--(Marketwire - Aug 11, 2011) - 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.

Contact Information

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