2. Cautionary Statement Regarding
Forward-looking Statements
This presentation includes forward-looking statements and projections, made in reliance on the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 presentation, including, without limitation, the successful
implementation of the 2003 operational and financial plan; the successful implementation of the
settlement related to the western energy crisis; actions by the credit rating agencies; the
successful close of financing transactions; our ability to successfully exit the energy trading
business; our ability to divest of certain non-core assets; changes in commodity prices for oil,
natural gas, and power; general economic and weather conditions in geographic regions or
markets served by El Paso Corporation and its affiliates, or where operations of the company
and its affiliates are located; the uncertainties associated with governmental regulation; the
uncertainties associated with the outcome of governmental investigations; political and currency
risks associated with international operations of the company and its affiliates; inability to realize
anticipated synergies and cost savings associated with restructurings and divestitures on a
timely basis; difficulty in integration of the operations of previously acquired companies,
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.
2
3. El Paso Western Pipelines
Big Horn
Powder River
Wind River
Green River
Denver-Julesburg
Uinta
Piceance
Anadarko
Raton
San Juan
Permian
WIC
CIG
EPNG
Mojave
Cheyenne Plains
3
4. Natural Gas Production
7
Projected
6 Intermountain West
T rillio n C u b ic F e e t
5
Gulf Coast
4
3 Mid-Continent
2 Southwest
1 Northeast
West Coast
0
1990 1995 2000 2005 2010 2015 2020 2025
Source: Energy Information Administration; Released Jan 2005
4
5. Northern Rockies
Net Export Supply vs. Capacity
MMcf/d
6,000 $2.20
CIG to Mid-Continent Basis
5,000 CIG to Henry Hub Basis
$1.70
Pipeline Export Capacity
Net Supply for Export
4,000
Capacity Surplus
$1.20
3,000
$0.70
2,000
$0.20
1,000
0 -$0.30
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
5
6. Rocky Mountain Supply
(Volumes are Wellhead – Measured in MMcfd)
10,000
Big Horn Wind River
9,000
Green River Overthrust
8,000
Powder River Uinta
7,000
Piceance Denver
6,000
5,000
4,000
Forecast by 2010:
3,000
High Case 13,000
2,000 Mid Case 9,500
Low Case 7,200
1,000
0
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
20
1990-2002: Wellhead total data from IHS database
2003: Estimate
6
2004-2010: CIG forecast
7. Rocky Mountain Region Production vs.
Local Demand*
MMcf/d
9,000
8,000
7,000
6,000
Incremental 1,749
5,000 6,392
MMcf/d of supply used
4,000 4,643 for exports
3,000
2,000
1,000 1674 1712
1,617 1628 1623 1652
1591
0
2003 2004 2005 2006 2007 2008 2009 2010
Rocky Mtn. Production Local Demand
Source: El Paso; * Local Demand is CO, UT, WY
7
8. Northern Rockies Export Capacity
with Recent Expansions* East
Trailblazer 850
KMI 400
Approximately 6.2 Bcf/d
265 CIG* 330
C. Plains** 730
Southern Star 180
650
WBI 265
Total 2,755
West
NWP North 650
NWP South 360
850
Kern 2,000
400
TransColorado 435 360 180
Total 3,445 330 730
2,000
435
* Excludes capacity from Raton
8
** Includes 2005 power-up expansion of 170 MDth/d
9. Cheyenne Basis to Henry Hub
versus Export Load Factors
Jan 1995 – July 2005
3.50
3.00
Historical Relationship
2.50
Load Factor ~83%
HH Hub Basis ~ $0.53
Dollars per MMBtu
2.00
1.50
1.00
0.50
0.00
60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0%
-0.50
Source: El Paso
9
10. Cheyenne to Henry Hub Basis
2.00
Time Period HH - Chy
1999 – Present $0.74
Over 2004 $0.64
Since Chy Plains $0.57
1.50 Forecast $0.54
Dollars per MMBtu
1.00
0.50
0.00
-0.50
Se 4
M4
5
04
05
4
4
5
04
4
05
5
04
4
M5
5
04
4
4
-0
-0
-0
-0
-0
l-0
l-0
-0
0
-0
-0
-0
-0
n-
n-
n-
n-
b-
b-
p-
ug
pr
pr
ay
ay
ov
ar
ar
ct
ec
Ju
Ju
Ju
Ju
Ja
Ja
Fe
Fe
A
A
O
M
M
A
N
D
HH - CHY
Source: El Paso
10
11. Rockies Supply vs.
Regional Export Capacity
MMcf/d
8,000
Cheyenne Plains
170 expansion
Cheyenne Plains
7,000 560 expansion
Incremental
1,203 of
6,000 Supply Growth
100% LF
90% LF Supply Available for Export
5,000
85% LF
Expansion needed:
4,000
Q2, 2006 if 85% LF
3,000 Q2, 2007 if 90% LF
Q3, 2011 if 100% LF
2,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: El Paso
11
12. El Paso Track Record
Recent and Future Rockies Expansions
Expansion Projects Capacity (Mdth) In Service
(Contracted Volumes)
Raton Basin
Raton Phase I 11 Dec 1994
Campo Lateral 81 Sep 1998
Raton Phase II 120 Sep 2001
Raton Phase III 45 Sep 2002
Raton Phase IV 105 Oct 2005
Power River
Medicine Bow 260 Dec 1999
Medicine Bow II 120 Aug 2000
Medicine Bow Loop 655 Dec 2001
Uinta Basin
Uinta Lateral 200 Dec 1992
Uinta – Kanda Lateral 300 Aug 2007
Piceance Basin
Parachute Creek Lateral 37 Oct 1996
WIC Piceance 350 Dec 2005
Green River
WIC – Overthrust 300 Dec 2006
Rockies Export
Cheyenne Plains 560 Dec 2004
Cheyenne Plains Expansion 170 Jan 2006
Rockies Access Pipeline 1500 ~ 2008
Expansion Contracted, 12
Future Expansions
Recent Expansions
Construction Pending
13. Conclusion
Gas is precious
►
Transportation is cheap
►
Connectivity is priceless
►
13
