INTERSTATE PIPELINES EXPLORATION & PRODUCTION Barclays 2010 CEO Energy-Power Conference Doug Foshee Chairman, President & Chief Executive Officer September 16, 2010
Our Purpose El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner 3
Our Vision & Values the place to work the neighbor to have the company to own 4
Overview of El Paso Corporation Colorado Tennessee Wyoming Gas Pipeline Interstate Gas Interstate Cheyenne Mojave Plains Pipeline Pipeline Elba Express Southern Pipeline Natural Gas El Paso Elba Island Natural Gas LNG…
Goal: Become the Top Execution-Focused Energy Company LOWER COSTS 150 MM Sustainable cost savings cost advantage NOW in 2010 DO THE RIGHT Centralize and E&P operations WORK MORE standardize Pipeline engineering EFFICIENTLY…
Execution Scorecard YTD 1B of projects placed in service on-time/on-budget Projects for remainder of 2010 at/under budget PIPELINES More Marcellus growth opportunities Ruby under way Increased production/lower cost guidance E&P…
Successful Risk Management Natural Gas Prices & Service Costs Additional price protection for 2011 New 2012 hedge positions Two-year stimulation contracts for Haynesville, Eagle Ford, and Altamont Recent steps help ensure…
Attractive Natural Gas Hedges HH NYMEX Pricing EP Avg. Floor Price 7.00 6.50 6.36 5.97 6.00 6.00 Natural Gas (MMBtu) 5.50 5.36 5.00 4.73 4.50 4.05 4.00 20101 2011 2012 EP Percent Hedged 70% 75% 25% Industry Avg. Percent…
El Paso Pipeline Group Premier Pipeline System Superior access to key new supply areas & top growth markets ROCKIES MARCELLUS GRANITE WASH HAYNESVILLE Top growth markets 20082018 EAGLE FORD 10
Pipeline Backlog Timeline Total Project Capital, Net to EP 1.5B 3.9B 0.8B 2010 2011 2012 & Beyond Year-to-Date Elba/Elba Express Ruby2 TGP NE Upgrade In Service TGP NE Supply On-time/On-budget FGT Phase VIII2 Diversification Gulf…
Ruby Construction Underway 680 miles8 spreads, 4 contractors Up to 5,000 workers at peak Keys to successful execution: Productivity (weather) Access (cultural resources clearance, fish & game windows) Photo by Braden Wolfe,…
Marcellus Opportunities Leveraging Our Existing Footprint Northeast Supply Diversification Up to 250 MMcf/d capacity Fully subscribed / 15 years ME In-service: 2012 Capex < 100 MM TGP NE Supply VT Diversification NH TGP 300…
El Paso Exploration & Production Asset Overview & Core Programs Altamont WESTERN CENTRAL Haynesville Cairo EGYPT GULF COAST Rio de Janeiro Eagle Ford BRAZIL 14
Tremendous Growth in Undrilled Resources Risked Unproved Resources 5.1 Tcfe 2.6 Tcfe 2006 YE 2009 YE Unconventional Conventional Low-Risk Conventional Higher Risk Growth Driven by Haynesville & Eagle Ford Shales Note:…
Maintaining Capital Discipline Focused on Haynesville, Altamont and Eagle Ford for remainder of the year Most profitable / most liquids Traditional programs front-end loaded Will allocate capital with price/cost trends Other…
Haynesville Position 40,000 net acres in the heart of the play Extremely low acquisition cost Currently operating 39 wells 15 wells in completion backlog 2Q 2010 net production up 105 MMcfe/d from 2Q 2009 250 future drilling…
Step Change Improvements in Drilling Time Drilling Days1 Early days Improved drill plan 49 and bit selection 39 2010Worked with suppliers to design 33 33 the best drill bit and 30 downhole drilling 25 assembly 22 Reduced…
EP Wells 30% More Productive than Industry1 Cumulative Six-Month Production2 Higher Productivity 1,600 a function of: 1,400 Favorable acreage position Well design optimization 1,200 MMcf Lateral length 1,000 Number of…
Excellent Progress Developing Our Eagle Ford Opportunity FRIO 170,000 net acres MAVERICK ZAVALA ATASCOSA Liquids Rich 60% in liquids rich area Area LA SALLE MC MULLEN Actively growing our position DIMMIT Completed 7 wells…
Economics of Gas Condensate Wells are Outstanding Significant NGLs and condensate volumes 20.25 boosts per Mcf revenue 9.00 Associated 4.50 Condensate Production Value of NGL 150 Bbls 125 Bbls per MMcf per MMcf Dry Gas…
Altamont Program is a Large Resource UINTA SWEETWATER SUMMIT WY Tight oil sands DAGGETT 4,000 ft. pay interval DUCHESNE WASATCH CO Largest acreage holder in play UINTAH UTAH MOFFAT Altamont-Bluebell 900 future locations1…
Altamont Program Update Net Production (BOE/d) 8,000 5.0 Production now consistently 4.5 above 10,000 BOE/d (gross) 7,000 4.0 6,000 3.5 Continuous improvement: 5,000 3.0 4,000 2.5 Drilling time 3,000 2.0 Well cost 1.5 Unit LOE…
Summary Execution focus is building value Delivering pipeline projects on-time/on-budget Significant future cash flow generation E&P managed for value Drilling most profitable programs Living within our means Excellent hedge…
INTERSTATE PIPELINES EXPLORATION & PRODUCTION Barclays 2010 CEO Energy-Power Conference Doug Foshee Chairman, President & Chief Executive Officer September 16, 2010
Appendix
Definition of Terms El Paso uses the term Risked Unproved Resources in this presentation. Although the SEC now allows companies to report unproved reserves in the form of probable and possible reserves in their SEC filings, we have…
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