Interstate Pipelines Exploration & Production Midstream www.elpaso.com NYSE: EP Doug Foshee Chairman, President & Chief Executive Officer September 6, 2011 D E P E N D A B L E N A T U R A L G A S
On track for separation by year end 3
Corporate yield with Top-tier double-digit dividend growth independent producer Largest pure-play interstate Proven strategy natural gas transport company Delivering consistent growth Well positioned for future growth & very good…
Transports more than 25 percent of natural gas delivered to U.S. consumers1 Best footprint Highly integrated systems Superior project execution 5 1As of December 31, 2010
Canadian Import Decline Northwest Demand Northeast Rockies Demand Power Generation Marcellus Coal replacements, Supply Shale renewable back-up Power Generation Coal replacements Rockies Demand Power Generation Demand…
In Service In Service In Service October November Expect to complete backlog within 7%8% of budget 7 1Phase two of three-phase project, includes SESH II
Powerful deleveraging tool & efficient source of capital for EP EPB distribution growth15% CAGR since IPO El Paso committed to continue dropdowns Grow GP distributions (via IDR) Large inventory of suitable assets Only 40% of…
667 MM 25% interest in SNG 745 MM 810 MM 28% interest in CIG 51% of SLNG 15% interest in SNG 51% Elba Express 492 MM 20% interest in SNG 1,133 MM 49% of SLNG 49% Elba Express 15% interest in SNG 215 MM 18% interest in CIG…
EP acreage Industry shale plays EP current areas 30B of gathering and processing infrastructure to be added in North America by 20201 11 110-year period; INGAA Foundation, June 2011. Gathering and processing assets
Since 2007: Inventory has grown 30% per year to 8.0 Tcfe1 More than 10 years of low-risk drilling; core programs mostly oil RRC has dropped from 3.55/Mcfe to 1.40/Mcfe1 Reduced direct LOE to 0.73/Mcfe1 Adjusted EBITDA +…
Oil is 48% of future drilling inventory But 2/3 of future value Oil volumes growing 35%45% in 2011 Oil expected to be 45% of 2012 revenues Tremendous growth in inventory plus shift in capital 13
CORE DRILLING PROGRAMS LOCATIONS1 Haynesville 415 ALTAMONT Eagle Ford 1,145 Wolfcamp 860 Altamont 840 Total 3,260 WOLFCAMP HAYNESVILLE Oil Resources Gas Resources EAGLE FORD 10 years of drilling locations 14 1As of…
Wells drilled: 52 Wells completed: 41 Central area remains TX Wells on-line: 32 focus of Eagle Ford program 75,000 net acre position delineated 3 rigs running Infrastructure build on track On track for EP Leasehold EP…
MIDLAND COKE GLASSCOCK STERLING TOM Very good initial results UPTON TX GREEN Delineating acreage REAGAN 800 locationsUpper IRION Wolfcamp only Current leasehold of 138,000 acreages El Paso acreage Wolfcamp/Wolfberry PECOS…
Gas Oil Equivalent IP 24 per Well Lateral Length No. of Stages (Mcf/d) (BOPD) (BOEPD) Stage LONG LATERALS MODEL 7,0008,000 2427 450530 500585 575675 24 LONG UL 43 19-1H 7,100 24 500 575 660 28 (central) UL 39-7-1H 4,000…
RUSK DE SOTO WINN 140,000 net acre position CHEROKEE SHELBY NATCHITOCHES Early, low-cost entry into NACOGDOCHES TX LA GRANT repeatable program SABINE SAN AUGUS- Leverages South Texas expertise HOUSTON TINE ANGELINA SABINE 3D…
100% success rate 8 wells completed to date Avg. IP 30 (6 wells): 325 Bbl/d and 2.5 MMcf/d Increased program to 2 rigs Additional 3-D in progress More details Nov. 8 EP Energy Investor & Analyst meeting 21
Natural Gas Production Hedges Volume % of U.S. Gas EP Avg. Hedge Price1 Current Market Year (Bcf) Production (/MMBtu) Prices (NYMEX) 2011 96 80% 5.89 4.20 2012 105 40% 6.01 4.58 Oil Production Hedges Volume % of Total Oil EP Avg.…
Pipelines nearing completion of backlog Will shift to cash flow generator Continued great execution of MLP strategy E&P delivering consistent results Oil production will continue to accelerate Separation will create significant value…
Interstate Pipelines Exploration & Production Midstream www.elpaso.com NYSE: EP Doug Foshee Chairman, President & Chief Executive Officer September 6, 2011 D E P E N D A B L E N A T U R A L G A S
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