Fourth Quarter 2009 Financial & Operational Update March 1, 2010 Interstate Pipelines Exploration & Production
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
2009 Look Back Great Financial and Operational Execution Pipelines 12% increase in adjusted EBIT Secured Ruby partner Solid project execution Four new projectson-time/on-budget Backlog remains on-time/on-budget Note: See the…
2009 Look Back Great Financial and Operational Execution E&P Dramatic improvement in performance Production763MMcfe/d1 Domestic direct lifting costs down to 0.70/Mcfe Domestic RRC1.57/Mcfe2 44% growth in unproved resources…
2009 Look Back Great Financial and Operational Execution Financial 3.8 billion financings 4Q084Q09 Stayed ahead of financing needs Finished the year with strong liquidity1.8 billion Solid 4Q and full-year financial results 0.34…
Off to a Great Start in 2010 Ruby Final EIS received early January 1.5 billion financing commitments Expect FERC approval in March Increasingly favorable macro picture Production ahead of expectations Increasing 2010 production…
Off to a Great Start in 2010 Elba and Elba Express in service 900 MMon-time/on-budget 300 MM non-core asset sale New Marcellus pipeline project Fully subscribed, 20-year contracts MLP equity sale in January 9
Interstate Pipelines Exploration & Production Financial Results
2009 Full Year Financial Results Millions Cash Flow from Capital Operations Expenditures1 2,810 2,757 2,370 85 60 2,115 1,024 1,564 1,701 1,133 2009 2008 2009 2008 Pipelines E&P Corporate 1.8 billion total liquidity2…
Executing on 2010 Financing Plan Ruby financing: 1.5 billion of commitments Asset sales: 300 MM contracted MLP: 236 MM MLP equity issued Significant progress in first 60 days 14
Ruby Financing Update 1.5 billion of commitments for Ruby project financing Strong demand 7-year term Closing in advance of start of construction 15
Excellent Hedge Positions Through 2011 Natural Gas (MMBtu) Oil (Bbl) 2010 2011 2010 2011 Avg. Ceiling 7.24 8.66 81.97 95.56 Avg. Floor 6.41 6.00 76.20 80.00 Expected Production 80% 60% 100% 25% with floors 2010 hedges…
Interstate Pipelines Pipeline Group
Highlights 12% increase in FY adjusted EBIT 2009 projects on-time/on-budget Excellent progress on additional growth projects: Elba III Expansion/Elba Express on-time/on-budget Ruby moving forward Capturing significant Marcellus…
Throughput by Region Annual % 2009 vs. 2008 Throughput Ups Downs TGP -5% Weather/Supply area SNG -1% Power Gen Industrial EPNG -10% Arizona and California CIG 3% Rockies supply, expansions 3% overall decrease reflects…
Two Major Projects In Service Elba III Expansion* Elba Express Pipeline On-time/on-budget 900 MM invested capital 25 and 30-year contracts Solid regulated returns Demand charge-driven Not sensitive to capacity utilization *…
Excellent Execution on Elba Express 190-mile greenfield project Elba Express 42 and 36 pipe Elba Island 2 major river crossings SNG Cypress Significant topography Pipeline variation Marshland to hills to rocky terrain Wet…
Permitting & Regulatory: Final EIS received January 8 Ruby Pipeline FERC certificate expected in March BLM permit expected in April Construction: GTN Expect to begin May/June Malin OR ID WY Tuscarora Opal Hub PG&E Ruby WIC…
Significant Growth in Northeast VT NH TGP Line 300 340 MMcf/d capacity MA Fully subscribed/15 years NY In-service: 2011 CT RI Capex: 0.6 billion Mostly in 2011 PA NJ Northeast Upgrade Project OH 620 MMcf/d capacity Fully…
Exploration & Production Exploration & Production
2009 Highlights Production 2009 production at high end of guidance Domestic direct lifting costs down 0.19/Mcfe Proved reserves/Unproved resources 1.57/Mcfe domestic RRCstep change improvement 44% growth in risked unproved…
Production Poised for Future Growth Growth from Production rebounded unconventional programs as activity increased MMcfe/d MMcfe/d 2009 Rigs 816 850 16 763 11 12 14 800 268 339 12 750 10 154 154 8 700 6 329 312 4 650 2 FY…
Excellent Improvement in Domestic Reserve Replacement Metrics Reserve Replacement Costs Reserve Replacement Ratio (RRC, /Mcfe)1 (RRR)1 220% 2.87 195% 1.57 2009 2008 2009 2008 Total Company2 2.75 Tcfe of YE proved reserves…
E&PValue Creation and Growth Risked Unproved Resources (Bcfe) 5,120 600 3,550 44% 2,045 2,550 2,790 700 27% 9% 835 985 1,770 1,460 2,475 1,180 1,080 385 495 2006 YE 2007 YE 2008 YE 2009 YE Unconventional Conventional…
Haynesville Continues to Deliver Claiborne Year-end exit rate Marion 110 MMcfe/d (net) Bossier Webster Harrison Caddo Great results in Holly area Gregg Bienville Last 5 wells avg. 17 Holly MMcfe/d IP-30 rate Panola Red River…
Eagle Ford Shale Provides Significant Resource and Production Potential MAVERICK ZAVALA FRIO ATASCOSA Oil Window Position up to LA SALLE Gas-Condensate Window 138,000 net acres* DIMMIT MC MULLEN Completing second well Dry Gas…
Growing Altamont Position El Paso Flying J Program up to 3 rigs UT Successful acquisition in 4Q09 70 Bcfe proved reserves* Substantial unproved resources Duchesne 1.49/Mcfe proved Uintah acquisition cost Acreage includes…
Summary Entering 2010 with significant momentum Significant new pipeline assets in place Ruby making excellent progress E&P ahead of expectationshigher production outlook Financing plans progressing well On track for 2010 and…
Fourth Quarter 2009 Financial & Operational Update March 1, 2010 Interstate Pipelines Exploration & Production
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