Interstate Pipelines Exploration & Production Midstream www.elpaso.com NYSE: EP May 5, 2011 D E P E N D A B L E N A T U R A L G A S
Excellent financial and operational results Lots of positives at E&P Value of Eagle Ford position on the rise; better to develop ourselves Encouraging Wolfcamp results On-going progress in the Pipelines Advancing major projects EPNG…
4
Strong financial results Continued MLP drop-down execution Successfully completed 6th transaction 667 MM cash proceeds to EP Funding debt reduction Additional risk management for 2011 Good progress on all fronts 5
Millions CASH FLOW FROM OPERATIONS CAPITAL EXPENDITURES1 1,089 531 26 478 319 741 19 242 744 480 2011 2010 2011 2010 Pipelines E&P Other 1Q cash flow and capex consistent with guidance 7 1 Capital expenditures are…
Natural Gas Production Hedges Volume % of U.S. Gas EP Avg. Hedge Price1 Current Market Year (Bcf) Production (/MMBtu) Prices (NYMEX) 2011 148 80% 5.78 4.56 2012 105 45% 6.01 5.18 Oil Production Hedges Volume % of Total Oil EP…
9
Results benefit from expansions Continued execution of expansion projects FGT Phase VIII in-service in April - on-time/on-budget Will deliver four more projects this year New opportunities in Mexico for EPNG Off to a good start in…
Year to date 2011 vs. 2010 Percent Pipeline Change Key Drivers: TGP 17% Weather, Marcellus SNG -9% Weather, power generation CIG/WIC/CPG -6% Rockies production, region exports, weather EPNG1 -9% CA storage withdrawals,…
Additional capacity for two new power facilities in Sonora served by: MGI Supply, Ltd (PEMEX) Mexicana de Cobre (Grupo Mexico) 185 MMcf/d on EPNGs mainline and Willcox lateral 18 MM capital 30 MM annual revenues (207 MM total…
November TGP 300 Line Completed July Ruby on-time/ on-budget October April Gulf LNG FGT Phase VIII June SNG South System III* Nearing completion of 8 billion backlog 13 *Phase two of three-phase project, includes SESH…
14
Outstanding start for the year Strong production results Mitigating service cost inflation with efficiency gains Growing oil focus Eagle Ford success Encouraging Wolfcamp results Terrific execution 15
(MMCFE/D) (/MCFE) 821 1.88 1.85 781 2011 2010 2011 2010 Continuing to build on successful track record 16 Note: Includes proportionate share of Four Star equity volumes
Millions EXAMPLE: HAYNESVILLE WELL Drilling Costs Completion Costs Higher fuel, Higher fuel & longer laterals proppant costs 9 MM 9 MM 10% Reduction in 25% Increase in Drilling Days Frac Stages/Day (Saving 3 days/well) (Completing…
MAVERICK ZAVALA FRIO ATASCOSA Early mover with low Oil acreage costs Volatile Oil LA SALLE MC MULLEN Derisked acreage position DIMMIT in La Salle county Wet Gas Oil production poised to grow Dry Gas Driving operational…
30 wells drilled Oil LA SALLE 21 wells completed DIMMIT 10 wells on-line 4 rigs running Infrastructure under Volatile Oil construction Testing 80100 acre Wet Gas spacing Dry Gas EP Leasehold EP Completed / Completing Wells…
Pilot well REAGAN Completed wells Waiting on completion Drilling 8-12-1H IRION 43-19-1H 43-22-1H 3 wells drilled in 1Q 47-18-1H 38-29-1H Delineating acreage with 2-rig program Early in optimization phase 39-7-1H Entire 138k…
PARAMETER MODEL RESULTS Depth Ft. 5,8007,000 5,8807,930 Thickness Ft. 400850 9761,080 Net Pay Ft. 200425 544680 Porosity % 7.015.0 9.412.0 Organic content 4.015.0 4.08.2 Thicker gross section More net pay Better quality…
Gas Oil Equivalent Well Lateral Length No. of Stages (Mcf/d) (BOPD) (BOEPD) TYPE MODEL 4,0006,000 1220 250340 250340 300400 UL 38-29-1H 2,000 7 115 273 292 (east) UL 39-7-1H 4,000 12 275 291 337 (east) UL 43-22-1H 3,600 13 341 335…
Encouraged by early results Increased to 2-rig program Delineate acreage Continuing to optimize development plan Lateral length, frac stages, vertical vs. horizontal, artificial lift 23
Excellent results continue positive momentum E&P exceeding expectations More oil development success Pipelines executing on growth Developing Midstream business Advancing successful MLP strategy More to come on May 24 24
Interstate Pipelines Exploration & Production Midstream www.elpaso.com NYSE: EP May 5, 2011 D E P E N D A B L E N A T U R A L G A S
Loading...
