1. El Paso Corporation
Doug Foshee
President & Chief Executive Officer
Lehman Brothers
CEO Energy/Power Conference
September 3, 2008
2. Cautionary Statement Regarding
Forward-looking Statements
This presentation includes certain forward-looking statements and projections. 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, changes in unaudited and/or unreviewed financial information; our ability to implement and achieve our objectives in the 2008 plan,
including earnings and cash flow targets; the effects of any changes in accounting rules and guidance; our ability to meet production volume targets in our
E&P segment; uncertainties and potential consequences associated with the outcome of governmental investigations; outcome of litigation; our ability to
obtain necessary governmental approvals for proposed pipeline projects and our ability to successfully construct and operate such projects; changes in
commodity prices and basis differentials for oil, natural gas, LNG and power and relevant basis spreads; general economic and weather conditions in
geographic regions or markets served by the company and its affiliates, or where operations of the company and its affiliates are located; the uncertainties
associated with governmental regulation; political and currency risks associated with international operations of the company and its affiliates;
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.
Certain of the production information in this presentation include the production attributable to El Paso’s 49 percent interest in Four Star Oil & Gas
Company (“Four Star”). El Paso’s Supplemental Oil and Gas disclosures, which are included in its Annual Report on Form 10-K, reflect its proportionate
share of the proved reserves of Four Star separate from its consolidated proved reserves. In addition, the proved reserves attributable to its proportionate
share of Four Star represent estimates prepared by El Paso and not those of Four Star.
Cautionary Note to U.S. Investors—The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to
disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. We use certain terms in this presentation that the SEC's guidelines strictly prohibit us from
including in filings with the SEC. U.S. Investors are urged to consider closely the disclosures regarding proved reserves in this presentation and the
disclosures contained in our Form 10-K for the year ended December 31, 2007, File No. 001-14365, available by writing; Investor Relations, El Paso
Corporation, 1001 Louisiana St., Houston, TX 77002. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
Non-GAAP Financial Measures
This presentation includes certain Non-GAAP financial measures as defined in the SEC’s Regulation G. More information on these Non-GAAP financial
measures, including EBIT and cash costs, and the required reconciliations under Regulation G, are set forth in this presentation or in the appendix
hereto. El Paso defines Resource Potential as subsurface volumes of oil and natural gas the company believes may be present and eventually
recoverable. The company utilizes a net, geologic risk mean to represent this estimated ultimate recoverable amount.
2
3. Defining Our Purpose
El Paso Corporation provides
natural gas and related energy
products in a safe, efficient, and
dependable manner
3
4. Our Vision & Values
the place to work
the neighbor to have
the company to own
4
5. El Paso Corporation
Pipelines E&P
42,000 miles of interstate pipeline 2.8 Tcfe proven reserves*
Best positioned—markets & supply Top 10 domestic independent
Value Drivers
10%+ EBIT growth 2008–2013 8%–12% production growth
2007–2010
$8 billion committed project
backlog International developments
Additional opportunities Inventory expansion
*As of 12/31/07 excluding reserves related to properties divested in 2008; also includes reserves from
5
proportionate share of Four Star
6. Delivering Superior Performance
$1.00–$1.10 $1.40–$1.50
Share Dividend
EPS Guidance EPS Guidance
Corporate buy-back increase
Original Current
$3B backlog $8B backlog
FGT Ruby TGP
Pipelines 6%–8% long-term 10%+ long-term
Phase VIII Pipeline Line 300
EBIT growth EBIT growth
Pursuing CBM 8%–12%
E&P High grading Niobrara Haynesville Accelerate
& Altamont volume growth
complete shale tests shale test Bia
down spacing 3 years
Jan Sep
2008
6
7. El Paso Pipeline Group
North America’s Leading Natural Gas Pipeline Franchise
Tennessee
Colorado Wyoming Gas Pipeline
Interstate Gas Interstate
Cheyenne
Mojave Plains Pipeline
Pipeline
Southern
Natural Gas
Elba Island
El Paso
LNG
Natural Gas
Mexico
Gulf LNG
Ventures
(50%)
Florida Gas
Transmission (50%)
19% of total U.S. interstate pipeline mileage
24 Bcf/d capacity (16% of total U.S.)
18 Bcf/d throughput
28% of gas delivered to U.S. consumers
Source: El Paso Corporation based on 2007 data
Note: Includes El Paso Corporation and El Paso Pipeline Partners, L.P.
7
8. El Paso Backlog: Large and Profitable
Total committed backlog $8 billion
WIC Medicine Bow
Expansion
$39 MM Ruby Pipeline
Sep 2008 $3 Billion TGP Concord
330 MMcf/d 2011 $21 MM
TGP Line 300 Expansion
1.3–1.5 Bcf/d Nov 2009
$750 MM (Phase I & II)
30 MMcf/d
2010-2011
290 MMcf/d
WIC Expansion - Kanda
CIG High Plains Pipeline
Lateral & Wamsutter
$216 MM (100%)
$55 MM Elba Expansion III & Elba
December 2008
2010–2011 Express
900 MMcf/d
240 MMcf/d $1.1 Billion
SNG SESH –Phase I 2010–2013
CIG Totem Storage $172 MM 8.4 Bcf / 0.9 Bcf/d & 1.2 Bcf/d
WIC Piceance $154 MM (100%) Sep 2008
Lateral July 2009 140 MMcf/d
$62 MM SNG Cypress Phase III
200 MMcf/d
4Q 2009 $86 MM
220 MMcf/d Jan 2011
CIG Raton 2010
160 MMcf/d
Expansion TGP Carthage
TGP Bluewater / 800 Ln Exp
$146 MM Expansion
$25 MM
2Q 2010 $39 MM SNG South System III/
Nov 2008
130 MMcf/d May 2009 SESH Phase II
340 MMcf/d
100 MMcf/d $352 MM / $69 MM
2011–2012
Gulf LNG 370 MMcf/d / 350 MMcf/d
$1+ Billion (100%)
Oct 2011
El Paso Pipeline Partners, LP FGT Phase VIII
6.6 Bcf / 1.3 Bcf/d
Expansion
$2.4 Billion (100%)
El Paso Pipeline 2011
800 MMcf/d
Note: As of August 6, 2008; El Paso Pipeline Partners owns 10% of SNG & CIG 8
9. Ruby Pipeline Update
670 miles of 42quot; pipeline
Market commitments of 1.1 Bcf/d
$3 billion capex
100% of pipe ordered
1.3–1.5 Bcf/d capacity
Incentive-based construction contracts
2011 in-service
On the ground since mid-2007
Malin
OR ID
WY
Tuscarora Opal Hub
PG&E
WIC
Ruby
Pipeline Cheyenne
Paiute
Cheyenne
CA Plains
Uinta
Kern River Basin
NV
CO
Piceance
Basin
CIG
UT
9
11. FGT Phase VIII
AL Proposed Pipeline Expansion
GA FGT
$2.4 billion (100%)
50% EP, 50% SUG
FL
500 miles
800 MMcf/d capacity
Over 700 MMcf/d firm long-term
commitments
2011 in-service
11
12. TGP Line 300 Expansion
NH
VT
Marcellus
Interconnects
MA
NY
CT
MI
RI
NJ
REX-TGP PA
Interconnect
OH 125 miles of 30quot; looping
15-year contract for 300 MDth/d
EQT
with Equitable Energy LLC
Production
WV
$750 MM capex
2010–2011 in-service
Locked in pipe cost
VA
KY
12
13. LNG Assets Provide Committed Growth
Elba Island LNG Gulf LNG
Savannah, GA Pascagoula, MS
$1.1 Billion expansion (terminal & pipeline) $1.1 Billion (100%); 50% EP
8.4 Bcf incremental storage capacity $870 MM non-recourse financing completed
0.9 Bcf/d incremental send-out capacity 1.3 Bcf/d base sendout
Fully contracted with Shell and BG Fully contracted with Angola LNG and ENI
EPC with CBI EPC with Aker Kvaerner
13
14. Top 10 Domestic Independent
Nile
Delta
Sinai
Brazil Gulf
Egypt of
Egypt Suez
Rio de
Janeiro
Brazil Egypt
247 Bcfe of proved reserves Onshore conventional
exploration
2 significant development Domestic
projects 1.2 MM acres
Primarily coal seam and tight-gas
More exploration potential First drilling 4Q 2008
programs
with 24 prospects/leads
Low to medium-risk repeatable
plays
97% drilling success rate
Growing unconventional inventory
Note: Based on 2007 data 14
15. Significant Resource Inventory*
Infill drilling (CBM, Altamont, Arklatex)
Emerging shale gas plays
Upside (Niobrara and Haynesville)
Potential International exploration leads
6.1 Tcfe unrisked non-proved resources
2.8 Tcfe
2.0 Tcfe risked unconventional and low risk
Unproved
Inventory 95%+ success rate
Heavily weighted to U.S. Onshore (86%)
2.8 Tcfe
Proved 869 Bcfe Proved Undeveloped Reserves
Reserves R/P of 9.6
*As of 12/31/2007 adjusted for 2008 domestic divestitures 15
16. New Shale Opportunities
Haynesville Niobrara
CO
NM
Current prospective area
April 2008 prospective area Niobrara Shale
Wells drilled, drilling & permitted Test well locations
Approximately 42,500 net acres 3 wells drilled and completed
2 horizontal and 1 vertical
1 well drilled
Initial flow rates of 0.4–1.8 MMcfe/d
Second well drilling $2 MM–$3 MM completed well costs
Significant resource potential > 300,000 prospective net acres
16
17. Down Spacing Opportunities
Raton Altamont-Bluebell
WY
CO
UT
NM
Increased Density Drilling
CBM Increased Density Drilling
Pursuing 160-acre spacing
Pursuing 80-acre spacing
Hearing in September
Hearing held in July with state of
175–200 gross locations and
New Mexico
>30 MMBOE risked resource
Would add 500 gross locations and
potential
250 Bcfe risked resource potential
17
18. Brazil Developments
Gas Pinaúna
Discovery well
BM-ES-5 Block 1-BAS-64
BAS-
1-BAS-74
BAS-
Petrobras: 65%
Operator 1-BAS-73
BAS-
El Paso: 35%
4-ESS-177
Camarupim
Açai
1-ELPS-
ELPS-
6-ESS-168 1-ELPS-
ELPS-
160
170A
Cacau
4-ESS-164
Açai
East
2.5 km
0 1.5 2.5
BES-100 Camarupim DOC
Area Resource Outlook
Petrobras: 100%
Oil Gas
24% EP working interest
100% working interest
35–50 MMcfe/d net peak production
15–20 MBOE/d peak production
100–120 Bcfe net resources
59–90 MMBOE total resource potential
First gas in 1Q 2009
4 development wells
18
19. Egypt Position
Nile
Delta
Sinai Gas Field
Asset Overview:
Gulf
Egypt Oil Field
of
1.18MM Acres
Egypt Suez Significant recent discoveries
10 prospective areas
174 Bcfe net risked resource
South Mariut—100% WI potential
1.18 MM acres (4,785 km2)
Area:
757 Bcfe net unrisked resource
Status: Signed April 2007
Phase 1, 3 year term
potential
Work Program: 3D seismic survey
5 wells
NILE Asset Update:
Seismic completed in Q2
DELTA
Alexandria
Location of first well selected
10 prospective areas PLAY
Rig in country
First well to spud Q4 2008
* Phase 1 exploration estimate
WESTERN
**@ $70/bbl)
Other Opportunities:
Evaluating options to expand
DESERT
existing position
20 KMS
PLAY
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20. Tangible Results from High Grading
$/Mcfe
$2.01
$1.92
$1.92
$0.33 $0.54
$0.42
$0.06 $0.04 $0.05
$0.68 $0.64 $0.63
$1.59 $1.50 $1.47
$0.85 $0.82 $0.79
2Q 2007 1Q 2008 2Q 2008
Direct Lifting Costs General & Administrative
Taxes Other Than Production & Income Production Taxes
Controllable unit costs down 7% yr/yr
20
21. 2009 Natural Gas and
Oil Hedge Positions
Positions as of July 15, 2008
Cap: 151 TBtu @ Average $14.97/MMBtu
Gas
Floor: 176 TBtu @ Average $9.02/MMBtu
Balance at
Market Price
3.43 MMBbls
Oil
$109.93 fixed price
>50% of oil and domestic natural gas hedged
2009 hedge program enhances revenues by
approximately $270 MM
Note: See full Production-Related Derivative Schedule in Appendix 21
22. Summary
Solid financial results YTD
Adjusted EPS up 57%
Cash flow from operations up 52%
Pipelines
$8 billion backlog
EBIT growth 10%+ (2008–2013)
E&P
Inventory continues to grow
8%-12% production growth (2007–2010)
Excellent outlook for both businesses
22
23. El Paso Corporation
Doug Foshee
President & Chief Executive Officer
Lehman CEO
Energy/Power Conference
September 3, 2008
25. Disclosure of Non-GAAP
Financial Measures
The SEC’s Regulation G applies to any public disclosure or release of material information that includes a non-GAAP
financial measure. In the event of such a disclosure or release, Regulation G requires (i) the presentation of the most
directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of
the differences between the non-GAAP financial measure presented and the most directly comparable financial
measure calculated and presented in accordance with GAAP. The required presentations and reconciliations are
attached. Additional detail regarding non-GAAP financial measures can be reviewed in El Paso’s full operating
statistics, which will be posted at www.elpaso.com in the Investors section.
El Paso uses the non-GAAP financial measure “earnings before interest expense and income taxes” or “EBIT” to
assess the operating results and effectiveness of the company and its business segments. The company defines EBIT
as net income (loss) adjusted for (i) items that do not impact its income (loss) from continuing operations, such as
extraordinary items and discontinued operations; (ii) income taxes; and (iii) interest and debt expense. The company
excludes interest and debt expense so that investors may evaluate the company’s operating results without regard to
its financing methods or capital structure. El Paso’s business operations consist of both consolidated businesses as
well as investments in unconsolidated affiliates. As a result, the company believes that EBIT, which includes the results
of both these consolidated and unconsolidated operations, is useful to its investors because it allows them to evaluate
more effectively the performance of all of El Paso’s businesses and investments. Exploration and Production per-unit
total cash costs or cash operating costs equal total operating expenses less DD&A, cost of products and services,
transportation costs, and ceiling test charges divided by total production. It is a valuable measure of operating
efficiency.
El Paso believes that the non-GAAP financial measures described above are also useful to investors because these
measurements are used by many companies in the industry as a measurement of operating and financial performance
and are commonly employed by financial analysts and others to evaluate the operating and financial performance of
the company and its business segments and to compare the operating and financial performance of the company and
its business segments with the performance of other companies within the industry.
These non-GAAP financial measures may not be comparable to similarly titled measurements used by other companies
and should not be used as a substitute for net income, earnings per share or other GAAP operating measurements.
25
26. E&P Cash Costs
2Q 2007 1Q 2008 2Q 2008
Total Per Unit Total Per Unit Total Per Unit
($ MM) ($/Mcfe) ($ MM) ($/Mcfe) ($ MM) ($/Mcfe)
$ 346 $ 4.84 $ 377 $ 5.11 $ 374 $ 5.40
Total operating expense
(189) (2.64) (212) (2.87) (197) (2.84)
Depreciation, depletion and amortization
(15) (0.22) (19) (0.26) (21)
Transportation costs (0.31)
(4) (0.06) (5) (0.06) (10)
Costs of products (0.15)
– – – – (7)
Other (0.09)
$ 1.92 $ 1.92 $ 2.01
Per unit cash costs*
71,493 73,762 69,366
Total equivalent volumes (MMcfe)*
*Excludes volumes and costs associated with equity investment in Four Star 26
27. Reserves Pro Forma Reconciliation
Onshore
Central Western TGC GOM Int’l Total
Reserves (Bcfe)
Ending reserves 1/1/08 1,328 715 550 269 247 3,109
Adjustments* (58) (40) (93) (118) – (309)
Pro forma ending reserves 1/1/08 1,270 675 457 151 247 2,800
*Adjustments reflect elimination of divestiture properties and addition of Peoples for full-year 2007
27
28. Exploration and Production in Brazil
Potiguar Basin
Pescada-Arabaiana
Production
Camamu Basin
Pinaúna Development
2 exploration wells
3 prospects, 11 leads
Brazil Stats
361,000 net acres
12 MMcfe/d Espirito Santo Basin
Rio de
Janeiro Camarupim (Bia) development
247 Bcfe reserves
2 exploration wells
695 Bcfe risked non-proved 3 prospects, 7 leads
resource potential
47 R/P
28
