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EL PASO CORPORATION
                                   Operating Statistics
                                   Fourth Quarter 2007

                                    Table of Contents

                                                                   Page

Consolidated Statements of Income                                   2


Consolidated Operating Results
   Consolidated Net Income                                          3
   Segment Information                                              4

Business Segment Results

    Pipelines
        Earnings Before Interest Expense and Income Taxes           5
        Throughput                                                  6

    Exploration and Production
       Earnings Before Interest Expense and Income Taxes            7
       Average Daily Volumes, Realized Prices and Costs Per Unit    8

    Marketing
       Earnings Before Interest Expense and Income Taxes             9
       Operating Data                                               10

    Power
       Earnings Before Interest Expense and Income Taxes            11

    Corporate and other
       Earnings Before Interest Expense and Income Taxes            12




                                           1
EL PASO CORPORATION
                                             CONSOLIDATED STATEMENTS OF INCOME
                                          (In millions, except per common share amounts)
                                                            (UNAUDITED)

                                                                          Three Months Ended             12 Months Ended
                                                                             December 31,                  December 31,
                                                                          2007          2006            2007         2006

Operating revenues                                                    $    1,262     $      913     $    4,648    $   4,281

Operating expenses
  Cost of products and services                                               75             37            245          238
  Operation and maintenance                                                  355            380          1,333        1,337
  Depreciation, depletion and amortization                                   326            281          1,176        1,047
  Taxes, other than income taxes                                              64             52            249          232
                                                                             820            750          3,003        2,854
Operating income                                                             442            163          1,645        1,427

Earnings from unconsolidated affiliates                                       26             24            101          145
Loss on debt extinguishment                                                   (4)             -           (291)         (26)
Other income, net                                                             19             62            197          204
                                                                              41             86              7          323

Earnings before interest expense, income taxes, and other charges            483            249          1,652        1,750

Interest and debt expense                                                   (252)          (287)          (994)       (1,228)

Income (loss) before income taxes                                            231            (38)           658          522
Income taxes                                                                  71            (23)           222              (9)
Income (loss) from continuing operations                                     160            (15)           436          531

Discontinued operations, net of income taxes                                    -          (151)           674           (56)
Net income (loss)                                                            160           (166)         1,110          475

Preferred stock dividends                                                      9               9            37              37
Net income (loss) available to common stockholders                    $      151     $     (175)    $    1,073    $     438

Earnings (losses) per common share
 Basic
  Income (loss) from continuing operations                            $     0.22     $     (0.03)   $     0.57    $     0.73
  Discontinued operations, net of income taxes                               -             (0.22)         0.97         (0.08)
  Net income (loss) per common share                                  $     0.22     $     (0.25)   $     1.54    $     0.65

 Diluted
  Income (loss) from continuing operations                            $     0.21     $     (0.03)   $     0.57    $     0.72
  Discontinued operations, net of income taxes                               -             (0.22)         0.96         (0.08)
  Net income (loss) per common share                                  $     0.21     $     (0.25)   $     1.53    $     0.64

Weighted average common shares outstanding
 Basic                                                                       697            693            696          678
 Diluted                                                                     759            693            699          739

Dividends declared per common share                                   $     0.04     $     0.04     $     0.16    $    0.16




                                                                2
EL PASO CORPORATION
                                                                                      CONSOLIDATED NET INCOME
                                                                                             (UNAUDITED)
                                                                                               2007                                                     2006                                         Year-to-Date
(In millions, except per common share amounts)                                First       Second    Third             Fourth           First       Second    Third         Fourth         2007         2006       2005

Operating revenues                                                        $ 1,022         $ 1,198     $ 1,166         $ 1,262      $ 1,337         $ 1,089     $   942     $    913     $ 4,648       $ 4,281       $   3,359

Operating expenses
    Cost of products and services                                                55            60              55          75             62            70          69           37         245             238           245
    Operation and maintenance                                                   301           329             348         355            285           338         334          380       1,333           1,337         1,935
    Depreciation, depletion and amortization                                    271           286             293         326            250           256         260          281       1,176           1,047         1,006
    Taxes, other than income taxes                                               60            72              53          64             57            62          61           52         249             232           234
       Total operating expenses                                                 687           747             749         820            654           726         724          750       3,003           2,854         3,420

Operating income (loss)                                                         335           451             417         442            683           363         218          163       1,645           1,427            (61)

Earnings from unconsolidated affiliates                                           37            44             (6)         26              29           37           55          24         101             145           281
Loss on debt extinguishment                                                     (201)          (86)             -          (4)             (6)          (3)         (17)          -        (291)            (26)          (29)
Other income, net                                                                 45            61             72          19              50           41           51          62         197             204           267

Earnings before interest expense, income taxes and other charges                216           470             483         483             756          438         307          249       1,652           1,750           458

Interest and debt expense                                                       (283)         (231)           (228)       (252)          (331)         (316)       (294)       (287)       (994)          (1,228)       (1,295)

Income (loss) before income taxes                                                (67)         239             255         231            425           122          13          (38)        658             522          (837)
Income taxes                                                                     (19)          70             100          71            124            (12)        (98)        (23)        222               (9)        (331)

Income (loss) from continuing operations                                         (48)         169             155         160            301           134         111          (15)        436             531          (506)

Discontinued operations, net of income taxes                                    677             (3)              -             -           55           16          24         (151)        674              (56)          (96)
                                                                (1)
Cumulative effect of accounting changes, net of income taxes                          -          -               -             -               -          -           -             -            -             -            (4)

Consolidated net income (loss)                                                  629           166             155         160             356          150         135         (166)      1,110             475          (606)

Preferred stock dividends                                                             9        10                9           9             10             9           9           9          37              37            27

Net income (loss) available to common stockholders                        $     620       $   156     $       146     $   151      $     346       $   141     $   126     $   (175) $ 1,073          $     438     $    (633)

Basic earnings (losses) per common share                                  $     0.89      $   0.23    $       0.21    $   0.22     $     0.53      $   0.21    $   0.18    $   (0.25) $    1.54       $    0.65     $    (0.98)

Diluted earnings (losses) per common share                                $     0.89      $   0.22    $       0.20    $   0.21     $     0.49      $   0.21    $   0.18    $   (0.25) $    1.53       $    0.64     $    (0.98)

Basic average common shares outstanding                                         694           696             696         697            656           671         693          693         696             678           646

Diluted average common shares outstanding                                       694           757             759         759            724           732         697          693         699             739           646

(1)
      $4 million in 2005 resulting from the adoption of FIN No. 47, Accounting for Conditional Asset Retirement Obligations.



                                                                                                          3
EL PASO CORPORATION
                                                                                  SEGMENT INFORMATION
                                                                                       (UNAUDITED)

                                                                                            2007                                   2006                             Year-to-Date
(In millions)                                                                  First   Second Third     Fourth        First   Second Third      Fourth       2007      2006      2005

Operating revenues
   Pipelines                                                               $ 644 $ 614 $ 586 $ 650 $ 643                      $ 580     $ 582 $ 597 $ 2,494 $ 2,402 $ 2,171
   Exploration and Production                                                  505     575     575     645     466                462      456   470  2,300   1,854   1,787
   Marketing                                                                  (135)    (16)     (9)    (59)    205                 18     (105) (176)  (219)    (58)   (796)
   Power                                                                         -       -       -       -       1                  2        3     -      -       6      82
   Field Services (1)                                                            -       -       -       -       -                  -        -     -      -       -     123
                                                    (2)
   Corporate and other, including eliminations                                   8      25      14      26      22                 27        6    22     73      77      (8)
        Consolidated total                                                 $ 1,022 $ 1,198 $ 1,166 $ 1,262 $ 1,337            $ 1,089   $ 942 $ 913 $ 4,648 $ 4,281 $ 3,359

Depreciation, depletion and amortization
   Pipelines                                                               $  94       $  91   $  94    $  94     $  93       $  93     $  92   $  92    $   373     $   370   $   343
   Exploration and Production                                                170         189     194      227       146         156       163     180        780         645       612
   Marketing                                                                   1           1       -        1         1           1         1       1          3           4         4
   Power                                                                       -           -       1        -         -           1         -       1          1           2         2
   Field Services (1)                                                          -           -       -        -         -           -         -       -          -           -         3
   Corporate and other (2)                                                     6           5       4        4        10           5         4       7         19          26        42
        Consolidated total                                                 $ 271       $ 286   $ 293    $ 326     $ 250       $ 256     $ 260   $ 281    $ 1,176     $ 1,047   $ 1,006

Operating income (loss)
   Pipelines                                                               $ 324 $ 276 $ 234 $ 277 $ 321 $ 251 $ 221 $ 270 $ 1,111 $ 1,063 $                                        779
   Exploration and Production                                                 177  229   228   252   191   161    138   135    886     625                                          671
   Marketing                                                                 (136) (20)  (13)  (65)  200     8   (113) (186)  (234)    (91)                                        (855)
   Power                                                                       (5)  (9)   (9)   (3)  (15)  (17)   (14)  (15)   (26)    (61)                                         (63)
   Field Services (1)                                                           -    -     -     -     -     -      -     -      -       -                                          (16)
   Corporate and other (2)                                                    (25) (25)  (23)  (19)  (14)  (40)   (14)  (41)   (92)   (109)                                        (577)
        Consolidated total                                                 $ 335 $ 451 $ 417 $ 442 $ 683 $ 363 $ 218 $ 163 $ 1,645 $ 1,427 $                                        (61)

Earnings (losses) before interest expense and income taxes (EBIT)
    Pipelines                                                              $ 364 $ 318 $ 275 $ 308 $ 346                      $ 286 $ 253 $ 302 $ 1,265 $ 1,187 $                   924
    Exploration and Production                                                179   235  232   263   199                        163    141   137    909     640                     696
    Marketing                                                                (135)    5   (8)  (64)  208                         13   (108) (184)  (202)    (71)                   (837)
    Power                                                                      18    16  (67)   (4)    3                         10     38    31    (37)     82                     (89)
    Field Services (1)                                                          -     -    -     -     -                          -      -     -      -       -                     285
    Corporate and other (2)                                                  (210) (104)  51   (20)    -                        (34)   (17)  (37)  (283)    (88)                   (521)
         Consolidated total                                                $ 216 $ 470 $ 483 $ 483 $ 756                      $ 438 $ 307 $ 249 $ 1,652 $ 1,750 $                   458
(1)
      By the end of 2005, we sold or transferred to other segment substantially all of our Field Services assets; therefore, Field Services is not reported as a segment starting 2006.
(2)
      Includes our corporate businesses, telecommunications business and residual assets and liabilities of previously sold or discontinued businesses. Refer to page 12 for details.



                                                                                               4
PIPELINES
                                                      EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES
                                                               (Excludes Intrasegment Transactions)

                                                                                2007                                         2006                                 Year-to-Date
(In millions)                                                      First   Second    Third        Fourth        First   Second    Third     Fourth        2007       2006      2005

Operating revenues                                             $     644   $   614   $   586      $   650   $     643   $   580   $   582   $   597   $ 2,494      $ 2,402   $ 2,171

Operating expenses
  Operation and maintenance                                          192       207       222          246         194       201       233       205         867        833        914
  Depreciation, depletion and amortization                            94        91        94           94          93        93        92        92         373        370        343
  Taxes, other than income taxes                                      34        40        36           33          35        35        36        30         143        136        135



        Total operating expenses                                     320       338       352          373         322       329       361       327       1,383      1,339       1,392



Operating income                                                     324       276       234          277         321       251       221       270       1,111      1,063        779

Equity earnings and other income, net                                 40        42           41        31          25        35        32        32         154        124        145



Earnings before interest expense and income taxes (EBIT)       $     364   $   318   $   275      $   308   $     346   $   286   $   253   $   302   $ 1,265      $ 1,187   $    924




Discontinued Operations - ANR (1)
   Operating revenues                                          $   101 $         -$           -   $     -   $     194   $   125   $   120   $   142   $   101 $        581   $    612
   Operating expenses and other income                            (957)          5            -         -          62        76        68        65      (952)         271        310
     EBIT                                                      $ 1,058 $        (5) $         -   $     -   $     132   $    49   $    52   $    77   $ 1,053 $        310   $    302


(1)
      In December 2006, we agreed to sell our ANR pipeline Company, our Michigan storage assets and our 50-percent interest in Great Lakes Gas
      Transmission to TransCanada Corporation and its affiliates. We closed the transaction in February 2007 and recorded a gain of $1,007 million.
      In the second quarter of 2007, we reduced the gain by $5 million.




                                                                                         5
PIPELINES
                                                                      THROUGHPUT
                                                             (Excludes Intrasegment Volumes)
                                                                         (BBtu/d)

                                                                2007                                    2006                            Year-to-Date
                                                  First    Second    Third    Fourth      First    Second    Third    Fourth   2007        2006      2005

Tennessee Gas Pipeline                             5,084    4,447     4,770       5,224    4,936    4,508     4,500    4,201    4,880       4,534    4,443
El Paso Gas Transmission Mexico, S. de R.L.           50       50        50          50       50       50        50       50       50          50       50
                     (1)
El Paso Natural Gas                                4,226    4,088     4,262       4,286    4,094    4,093     4,484    4,343    4,216       4,255    4,214
Colorado Interstate Gas (2)                        4,762    4,779     4,957       5,124    3,807    4,142     4,579    4,665    4,906       4,301    3,734
Southern Natural Gas                               2,339    2,120     2,537       2,381    2,151    2,064     2,307    2,146    2,345       2,167    1,984


       Total                                      16,461   15,484    16,576   17,065      15,038   14,857    15,920   15,405   16,397     15,307    14,425


Equity Investments (Ownership Percentage)
   Citrus (50%)                                      887      979     1,224       1,020     892     1,103     1,148      892    1,028       1,009     958
   Samalayuca & Gloria a Dios (50%)                  217      223       237         237     215       223       227      220      231         221     212
   San Fernando (50%)                                475      475       475         475     475       475       475      475      475         475     475


       Total                                       1,579    1,677     1,936       1,732    1,582    1,801     1,850    1,587    1,734       1,705    1,645


        Total throughput                          18,040   17,161    18,512   18,797               16,658    17,770   16,992   18,131     17,012    16,070
                                                                                          16,620


(1)
      Including Mojave Pipeline Company (MPC)
(2)
      Including Wyoming Interstate Company (WIC) and Cheyenne Plains Gas Pipeline (CPG)




                                                                              6
EXPLORATION AND PRODUCTION
                                                   EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES
                                                            (Excludes Intrasegment Transactions)

                                                                                    2007                                            2006                              Year-to-Date
(In millions)                                                      First       Second    Third       Fourth        First       Second    Third       Fourth   2007       2006      2005

Operating revenues
  Natural gas                                                  $     408       $   459   $   431     $   466   $     366       $   326   $   357 $      357   1,764      1,406     1,420
  Oil, condensate and natural gas liquids (NGL)                       88           111       129         166          90           118       119        103     494        430       371
  Other (1)                                                            9             5        15          13          10            18       (20)        10      42         18        (4)


        Total operating revenues                                     505           575       575         645         466           462       456        470   2,300      1,854     1,787


Operating expenses
  Depreciation, depletion and amortization                           170           189       194         227         146           156       163        180     780        645      612
  Production costs                                                    86            84        79          95          64            79        92         96     344        331      261
  Cost of products and services                                       24            19        25          24          22            22        23         20      92         87       47
  General and administrative expenses                                 46            49        46          44          42            41        38         35     185        156      185
  Other                                                                2             5         3           3           1             3         2          4      13         10       11


        Total operating expenses                                     328           346       347         393         275           301       318        335   1,414      1,229     1,116


Operating income                                                     177           229       228         252         191           161       138        135     886        625      671

Equity earnings and other income, net                                      2         6           4        11               8         2           3        2      23         15       25


Earnings before interest expense and income taxes (EBIT)             179           235       232         263         199           163       141        137     909        640      696

(1)
      Includes mark-to-market earnings / (losses) on derivatives not designated as accounting hedges.




                                                                                             7
EXPLORATION AND PRODUCTION
                                               AVERAGE DAILY VOLUMES, REALIZED PRICES AND COSTS PER UNIT
                                                                                                                                                                         Year-to-Date
                                                                                2007                                             2006
                                                                  First    Second    Third         Fourth          First    Second    Third       Fourth         2007       2006      2005
Natural Gas Sales Volumes (MMcf/d)
      Onshore                                                       321        324        322           359          297        303        308        312          332        305        268
      Texas Gulf Coast                                              162        171        170           209          164        155        152        150          178        155        174
      Gulf of Mexico and South Louisiana                            134        150        156           129           91        112        138        154          142        124        124
      International                                                  13         12         12            11           26         19         19         14           12         20         43
        Total Natural Gas Sales Volumes                             630        657        660           708          578        589        617        630          664        604        609
Oil, Condensate and NGL Sales Volumes (MBbls/d)
      Onshore                                                          7         7             6          8             6         7          7          7            7          7          5
      Texas Gulf Coast                                                 4         5             6          7             5         5          5          5            6          5          6
      Gulf of Mexico and South Louisiana                               8         8             8          8             7         9          8          9            8          8          9
     International                                                     1         1             1          -             1         1          1          1            -          1          2
        Total Oil, Condensate and NGL Sales Volumes                   20        21            21         23            19        22         21         22           21         21         22
Equivalent Sales Volumes (MMcfe/d)
      Onshore                                                       363        368        362           405          334        345        349        354          374        345        300
      Texas Gulf Coast                                              189        202        205           254          195        187        183        182          213        187        211
      Gulf of Mexico and South Louisiana                            182        202        206           175          133        165        189        209          191        174        179
      International                                                  16         14         14            13           32         22         23         17           14         24         53
        Total Equivalent Sales Volumes                              750        786        787           847          694        719        744        762          792        730        743
Unconsolidated Affiliate Volumes (Four Star Investment)
      Natural Gas (MMcf/d)                                            54        53            45         60            50        49         48         52           53         50         18
      Oil, Condensate and NGL (MBbls/d)                                3         3             3          3             3         3          3          3            3          3          1
        Total Equivalent Sales Volumes (MMcfe/d)                      70        71            61         77            71        66         66         68           70         68         24
Weighted Average Realized Prices
      Natural gas including hedges ($/Mcf)                    $ 7.19       $ 7.67     $ 7.12       $    7.16   $ 7.03       $ 6.08     $ 6.30     $ 6.15     $ 7.28       $ 6.38     $ 6.39
      Natural gas excluding hedges ($/Mcf)                    $ 6.46       $ 7.17     $ 5.92       $    6.57   $ 7.77       $ 6.34     $ 6.31     $ 6.21     $ 6.53       $ 6.64     $ 7.53
      Oil, condensate and NGL including hedges ($/Bbl)        $ 49.32      $ 56.87    $ 66.26      $   77.47   $ 51.25      $ 60.64    $ 60.81    $ 50.58    $ 63.11      $ 55.90    $ 45.60
      Oil, condensate and NGL excluding hedges ($/Bbl)        $ 50.07      $ 57.50    $ 66.82      $   77.93   $ 52.60      $ 60.64    $ 60.81    $ 50.58    $ 63.71      $ 56.21    $ 46.43
Transportation costs
      Natural gas ($/Mcf)                                     $     0.31   $   0.24   $   0.29     $ 0.24      $     0.24   $   0.22   $   0.23   $   0.24   $    0.27    $   0.23   $   0.18
      Oil, condensate and NGL ($/Bbl)                         $     0.76   $   0.68   $   0.84     $ 0.96      $     1.25   $   0.80   $   0.71   $   0.58   $    0.81    $   0.82   $   0.63
Cash operating costs ($/Mcfe)
        Average lease operating costs                         $     0.95   $   0.85   $   0.83     $ 0.89      $     0.73   $   0.87   $   1.03   $   1.12   $    0.88    $   0.95   $   0.72
        Average production taxes                                    0.32       0.33       0.26       0.33            0.29       0.33       0.32       0.24   $    0.31    $   0.29   $   0.24
      Total production costs                                        1.27       1.18       1.09       1.22            1.02       1.20       1.35       1.36   $    1.19    $   1.24   $   0.96
      Average general and administrative expenses                   0.69       0.68       0.64       0.57            0.67       0.62       0.57       0.50   $    0.64    $   0.59   $   0.68
      Average taxes, other than production and income taxes         0.03       0.06       0.04       0.04            0.02       0.04       0.03       0.05   $    0.05    $   0.03   $   0.03
          Total cash operating costs                          $     1.99   $   1.92   $   1.77     $ 1.83      $     1.71   $   1.86   $   1.95   $   1.91   $    1.88    $   1.86   $   1.67
Depreciation, depletion and amortization ($/Mcfe)             $     2.53   $   2.64   $   2.69     $ 2.91      $     2.34   $   2.39   $   2.37   $   2.58   $    2.70    $   2.42   $   2.26

                                                                                          8
MARKETING
                                              EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES
                                                        (Excludes Intrasegment Transactions)


                                                                          2007                                             2006                           Year-to-Date
(In millions)                                            First       Second   Third           Fourth      First       Second   Third     Fourth    2007      2006      2005


Operating revenues                                     $ (135) $        (16) $          (9) $    (59) $     205       $   18   $ (105) $ (176) $ (219) $       (58) $ (796)



Operating expenses
   Operation and maintenance                                     -        3             4          4              3        9        6       10       11         28       54
   Depreciation, depletion and amortization                      1        1             -          1              1        1        1        1        3          4        4
   Taxes, other than income taxes                                -        -             -          1              1        -        1       (1)       1          1        1



      Total operating expenses                                   1        4             4          6              5       10        8       10       15         33       59



Operating income (loss)                                   (136)         (20)           (13)      (65)       200            8     (113)     (186)    (234)      (91)    (855)


Other income, net                                                1       25             5          1              8        5        5         2      32         20       18



Earnings before interest expense and income taxes (EBIT) $ (135) $        5    $        (8) $    (64) $     208       $   13   $ (108) $ (184) $ (202) $       (71) $ (837)




                                                                                   9
MARKETING
                                                                                  OPERATING DATA

                                                                          2007                                                    2006                                       Year-to-Date
($ in millions)                                  First           Second            Third            Fourth           First   Second   Third          Fourth          2007       2006      2005

Price Risk Management Statistics
    Forward Trading Book                     $       (917) $         (894) $           (865) $         (875) $ (540) $ (523) $ (609) $ (433) $ (875) $ (433) $ (753)

      Average VAR (1)                        $           5   $            2   $            2    $            1   $      11   $      9    $      6    $      4    $      2      $    7    $   19

      Physical Gas Delivery (BBtu/d)                1,098           1,176             1,209           1,071       1,230          1,194       1,252       1,217       1,139       1,223    1,469
      Physical Power Sales (MMWh)                   1,312           1,315             1,261           1,297      10,392          7,991       3,500       1,957       5,185     23,840    58,832
      Financial Settlements (BBtue/d)               1,812           2,560             2,137           2,002       5,759          5,517       5,313       5,173       2,128     $ 5,439    7,295


Analysis of Price Risk Management Activities and Forward Book

      Trading Portfolio Value at Risk (VAR)(1)
       One Day VAR-95% Confidence Level at 12/31/07                       1
       Average VAR-95% Confidence Level during 2007                       2
       High VAR-95% Confidence Level during 2007                          6
       Low VAR-95% Confidence Level during 2007                           1

                                                                        December 31, 2007
      Risk Management Assets and Liabilities                   Forward     Return of Cash Total Cash
                                                             Trading Book Collateral (2) Expectations
       Mark to Market Value and Cash Liquidation
         2008                                                $       (205) $           -$       (205)
         2009                                                        (189)            25        (164)
         2010                                                        (129)             -        (129)
         2011                                                        (110)             -        (110)
         2012                                                        (100)             -        (100)
         Remainder                                                   (142)             -        (142)
           Total                                             $       (875) $          25 $      (850)

(1)
      VAR was calculated using the historical simulation methodology at a 95% confidence level and includes all MtM based trading contracts
      except for those trading contracts that relate to our E&P segment's forecasted sales volumes.
(2)
      Return of cash collateral includes margin posted against our production related option contracts.




                                                                                           10
POWER
                                              EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES
                                                        (Excludes Intrasegment Transactions)

                                                                              2007                                                     2006                                 Year-to-Date
(In millions)                                                First       Second   Third               Fourth          First       Second   Third        Fourth     2007       2006       2005

                                                                 (1) $       (2) $                                                                           (1) $      (7) $
Gross margin and other revenue                          $                                     (2) $       (2) $               -   $     -    $     -    $                          (1) $     63


Operating expenses
   Operation and maintenance                                         4        7               5            1             14           16         14         13         17         57         122
   Depreciation, depletion and amortization                          -        -               1            -              -            1          -          1          1          2           2
   Taxes, other than income taxes                                    -        -               1            -              1            -          -          -          1          1           2


      Total operating expenses                                       4           7                7           1          15           17         14         14         19         60         126


Operating loss                                                   (5)         (9)              (9)         (3)           (15)          (17)       (14)       (15)       (26)       (61)       (63)

Equity earnings and other income, net                           23           25           (58)            (1)            18           27         52         46         (11)       143        (26)


                                                                                                                                                                   $   (37) $
Earnings before interest expense and income taxes (EBIT) $      18       $   16      $    (67) $          (4) $               3   $   10     $   38     $   31                    82     $   (89)




EBIT by Region:
                                                                                                                                                                   $     -$
   Domestic Power                                       $        -$           -$            -$             -$            (6) $        (3) $      11     $    8                    10     $ (114)
   International Power                                          21           22           (62)            (4)            10           16         20          5         (23)       51         44
   Power G&A and Other                                          (3)          (6)           (5)             -             (1)          (3)         7         18         (14)       21        (19)

                                                                                                                                                                   $   (37) $
      Total Power                                       $       18       $   16      $    (67) $          (4) $               3   $   10     $   38     $   31                    82     $   (89)


Discontinued operations
   EBIT                                                 $        -       $   -       $        -       $   -       $     (15) $         4     $    (3) $      (4) $      -     $   (18) $ (506)




                                                                                         11
(1)
                                                                          CORPORATE AND OTHER
                                                          EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES
                                                                    (Excludes Intrasegment Transactions)

                                                                                     2007                                                2006                                   Year-to-Date
(In millions)                                                       First       Second    Third        Fourth           First       Second    Third       Fourth        2007       2006      2005

Gross margin and other revenue                                  $           9   $    12     $     9    $   11       $           9   $     8    $    (2) $      8    $      41    $    23     $    53


Operating expenses
   Operation and maintenance                                            26           28         34         25               12          41            7       39          113         99         567
   Depreciation, depletion and amortization                              6            5          4          4               10           5            4        7           19         26          42
   Taxes, other than income taxes                                        2            4         (6)         1                1           2            1        3            1          7          21


        Total operating expenses                                        34           37         32         30               23          48         12         49          133        132         630


Operating loss                                                         (25)          (25)       (23)       (19)            (14)         (40)       (14)      (41)         (92)       (109)       (577)

Loss on debt extinguishment                                           (201)          (86)        -          (4)             (6)          (3)       (17)        -         (291)        (26)        (29)
Equity earnings and other income, net                                   16             7        74           3              20            9         14         4          100          47          85


                                                                                    (104) $            $   (20) $               -   $   (34) $     (17) $    (37) $      (283) $      (88) $     (521)
Earnings before interest expense and income taxes (EBIT)        $     (210) $                   51




EBIT by Business Unit:
   Telecom                                                      $        4$            1$        -     $    -   $            2$           1$        (1) $      3$           5$          5$          8
   Corporate                                                          (214)         (105)       51         (20)             (2)         (35)       (16)      (40)        (288)        (93)       (529)


        Total EBIT                                              $     (210) $       (104) $     51     $   (20) $               -   $   (34) $     (17) $    (37) $      (283) $      (88) $     (521)


(1)
      Includes our corporate businesses, telecommunications business and residual assets and liabilities of previously sold or discontinued businesses.




                                                                                                12

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EP4Q07OpStats_Final

  • 1. EL PASO CORPORATION Operating Statistics Fourth Quarter 2007 Table of Contents Page Consolidated Statements of Income 2 Consolidated Operating Results Consolidated Net Income 3 Segment Information 4 Business Segment Results Pipelines Earnings Before Interest Expense and Income Taxes 5 Throughput 6 Exploration and Production Earnings Before Interest Expense and Income Taxes 7 Average Daily Volumes, Realized Prices and Costs Per Unit 8 Marketing Earnings Before Interest Expense and Income Taxes 9 Operating Data 10 Power Earnings Before Interest Expense and Income Taxes 11 Corporate and other Earnings Before Interest Expense and Income Taxes 12 1
  • 2. EL PASO CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In millions, except per common share amounts) (UNAUDITED) Three Months Ended 12 Months Ended December 31, December 31, 2007 2006 2007 2006 Operating revenues $ 1,262 $ 913 $ 4,648 $ 4,281 Operating expenses Cost of products and services 75 37 245 238 Operation and maintenance 355 380 1,333 1,337 Depreciation, depletion and amortization 326 281 1,176 1,047 Taxes, other than income taxes 64 52 249 232 820 750 3,003 2,854 Operating income 442 163 1,645 1,427 Earnings from unconsolidated affiliates 26 24 101 145 Loss on debt extinguishment (4) - (291) (26) Other income, net 19 62 197 204 41 86 7 323 Earnings before interest expense, income taxes, and other charges 483 249 1,652 1,750 Interest and debt expense (252) (287) (994) (1,228) Income (loss) before income taxes 231 (38) 658 522 Income taxes 71 (23) 222 (9) Income (loss) from continuing operations 160 (15) 436 531 Discontinued operations, net of income taxes - (151) 674 (56) Net income (loss) 160 (166) 1,110 475 Preferred stock dividends 9 9 37 37 Net income (loss) available to common stockholders $ 151 $ (175) $ 1,073 $ 438 Earnings (losses) per common share Basic Income (loss) from continuing operations $ 0.22 $ (0.03) $ 0.57 $ 0.73 Discontinued operations, net of income taxes - (0.22) 0.97 (0.08) Net income (loss) per common share $ 0.22 $ (0.25) $ 1.54 $ 0.65 Diluted Income (loss) from continuing operations $ 0.21 $ (0.03) $ 0.57 $ 0.72 Discontinued operations, net of income taxes - (0.22) 0.96 (0.08) Net income (loss) per common share $ 0.21 $ (0.25) $ 1.53 $ 0.64 Weighted average common shares outstanding Basic 697 693 696 678 Diluted 759 693 699 739 Dividends declared per common share $ 0.04 $ 0.04 $ 0.16 $ 0.16 2
  • 3. EL PASO CORPORATION CONSOLIDATED NET INCOME (UNAUDITED) 2007 2006 Year-to-Date (In millions, except per common share amounts) First Second Third Fourth First Second Third Fourth 2007 2006 2005 Operating revenues $ 1,022 $ 1,198 $ 1,166 $ 1,262 $ 1,337 $ 1,089 $ 942 $ 913 $ 4,648 $ 4,281 $ 3,359 Operating expenses Cost of products and services 55 60 55 75 62 70 69 37 245 238 245 Operation and maintenance 301 329 348 355 285 338 334 380 1,333 1,337 1,935 Depreciation, depletion and amortization 271 286 293 326 250 256 260 281 1,176 1,047 1,006 Taxes, other than income taxes 60 72 53 64 57 62 61 52 249 232 234 Total operating expenses 687 747 749 820 654 726 724 750 3,003 2,854 3,420 Operating income (loss) 335 451 417 442 683 363 218 163 1,645 1,427 (61) Earnings from unconsolidated affiliates 37 44 (6) 26 29 37 55 24 101 145 281 Loss on debt extinguishment (201) (86) - (4) (6) (3) (17) - (291) (26) (29) Other income, net 45 61 72 19 50 41 51 62 197 204 267 Earnings before interest expense, income taxes and other charges 216 470 483 483 756 438 307 249 1,652 1,750 458 Interest and debt expense (283) (231) (228) (252) (331) (316) (294) (287) (994) (1,228) (1,295) Income (loss) before income taxes (67) 239 255 231 425 122 13 (38) 658 522 (837) Income taxes (19) 70 100 71 124 (12) (98) (23) 222 (9) (331) Income (loss) from continuing operations (48) 169 155 160 301 134 111 (15) 436 531 (506) Discontinued operations, net of income taxes 677 (3) - - 55 16 24 (151) 674 (56) (96) (1) Cumulative effect of accounting changes, net of income taxes - - - - - - - - - - (4) Consolidated net income (loss) 629 166 155 160 356 150 135 (166) 1,110 475 (606) Preferred stock dividends 9 10 9 9 10 9 9 9 37 37 27 Net income (loss) available to common stockholders $ 620 $ 156 $ 146 $ 151 $ 346 $ 141 $ 126 $ (175) $ 1,073 $ 438 $ (633) Basic earnings (losses) per common share $ 0.89 $ 0.23 $ 0.21 $ 0.22 $ 0.53 $ 0.21 $ 0.18 $ (0.25) $ 1.54 $ 0.65 $ (0.98) Diluted earnings (losses) per common share $ 0.89 $ 0.22 $ 0.20 $ 0.21 $ 0.49 $ 0.21 $ 0.18 $ (0.25) $ 1.53 $ 0.64 $ (0.98) Basic average common shares outstanding 694 696 696 697 656 671 693 693 696 678 646 Diluted average common shares outstanding 694 757 759 759 724 732 697 693 699 739 646 (1) $4 million in 2005 resulting from the adoption of FIN No. 47, Accounting for Conditional Asset Retirement Obligations. 3
  • 4. EL PASO CORPORATION SEGMENT INFORMATION (UNAUDITED) 2007 2006 Year-to-Date (In millions) First Second Third Fourth First Second Third Fourth 2007 2006 2005 Operating revenues Pipelines $ 644 $ 614 $ 586 $ 650 $ 643 $ 580 $ 582 $ 597 $ 2,494 $ 2,402 $ 2,171 Exploration and Production 505 575 575 645 466 462 456 470 2,300 1,854 1,787 Marketing (135) (16) (9) (59) 205 18 (105) (176) (219) (58) (796) Power - - - - 1 2 3 - - 6 82 Field Services (1) - - - - - - - - - - 123 (2) Corporate and other, including eliminations 8 25 14 26 22 27 6 22 73 77 (8) Consolidated total $ 1,022 $ 1,198 $ 1,166 $ 1,262 $ 1,337 $ 1,089 $ 942 $ 913 $ 4,648 $ 4,281 $ 3,359 Depreciation, depletion and amortization Pipelines $ 94 $ 91 $ 94 $ 94 $ 93 $ 93 $ 92 $ 92 $ 373 $ 370 $ 343 Exploration and Production 170 189 194 227 146 156 163 180 780 645 612 Marketing 1 1 - 1 1 1 1 1 3 4 4 Power - - 1 - - 1 - 1 1 2 2 Field Services (1) - - - - - - - - - - 3 Corporate and other (2) 6 5 4 4 10 5 4 7 19 26 42 Consolidated total $ 271 $ 286 $ 293 $ 326 $ 250 $ 256 $ 260 $ 281 $ 1,176 $ 1,047 $ 1,006 Operating income (loss) Pipelines $ 324 $ 276 $ 234 $ 277 $ 321 $ 251 $ 221 $ 270 $ 1,111 $ 1,063 $ 779 Exploration and Production 177 229 228 252 191 161 138 135 886 625 671 Marketing (136) (20) (13) (65) 200 8 (113) (186) (234) (91) (855) Power (5) (9) (9) (3) (15) (17) (14) (15) (26) (61) (63) Field Services (1) - - - - - - - - - - (16) Corporate and other (2) (25) (25) (23) (19) (14) (40) (14) (41) (92) (109) (577) Consolidated total $ 335 $ 451 $ 417 $ 442 $ 683 $ 363 $ 218 $ 163 $ 1,645 $ 1,427 $ (61) Earnings (losses) before interest expense and income taxes (EBIT) Pipelines $ 364 $ 318 $ 275 $ 308 $ 346 $ 286 $ 253 $ 302 $ 1,265 $ 1,187 $ 924 Exploration and Production 179 235 232 263 199 163 141 137 909 640 696 Marketing (135) 5 (8) (64) 208 13 (108) (184) (202) (71) (837) Power 18 16 (67) (4) 3 10 38 31 (37) 82 (89) Field Services (1) - - - - - - - - - - 285 Corporate and other (2) (210) (104) 51 (20) - (34) (17) (37) (283) (88) (521) Consolidated total $ 216 $ 470 $ 483 $ 483 $ 756 $ 438 $ 307 $ 249 $ 1,652 $ 1,750 $ 458 (1) By the end of 2005, we sold or transferred to other segment substantially all of our Field Services assets; therefore, Field Services is not reported as a segment starting 2006. (2) Includes our corporate businesses, telecommunications business and residual assets and liabilities of previously sold or discontinued businesses. Refer to page 12 for details. 4
  • 5. PIPELINES EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES (Excludes Intrasegment Transactions) 2007 2006 Year-to-Date (In millions) First Second Third Fourth First Second Third Fourth 2007 2006 2005 Operating revenues $ 644 $ 614 $ 586 $ 650 $ 643 $ 580 $ 582 $ 597 $ 2,494 $ 2,402 $ 2,171 Operating expenses Operation and maintenance 192 207 222 246 194 201 233 205 867 833 914 Depreciation, depletion and amortization 94 91 94 94 93 93 92 92 373 370 343 Taxes, other than income taxes 34 40 36 33 35 35 36 30 143 136 135 Total operating expenses 320 338 352 373 322 329 361 327 1,383 1,339 1,392 Operating income 324 276 234 277 321 251 221 270 1,111 1,063 779 Equity earnings and other income, net 40 42 41 31 25 35 32 32 154 124 145 Earnings before interest expense and income taxes (EBIT) $ 364 $ 318 $ 275 $ 308 $ 346 $ 286 $ 253 $ 302 $ 1,265 $ 1,187 $ 924 Discontinued Operations - ANR (1) Operating revenues $ 101 $ -$ - $ - $ 194 $ 125 $ 120 $ 142 $ 101 $ 581 $ 612 Operating expenses and other income (957) 5 - - 62 76 68 65 (952) 271 310 EBIT $ 1,058 $ (5) $ - $ - $ 132 $ 49 $ 52 $ 77 $ 1,053 $ 310 $ 302 (1) In December 2006, we agreed to sell our ANR pipeline Company, our Michigan storage assets and our 50-percent interest in Great Lakes Gas Transmission to TransCanada Corporation and its affiliates. We closed the transaction in February 2007 and recorded a gain of $1,007 million. In the second quarter of 2007, we reduced the gain by $5 million. 5
  • 6. PIPELINES THROUGHPUT (Excludes Intrasegment Volumes) (BBtu/d) 2007 2006 Year-to-Date First Second Third Fourth First Second Third Fourth 2007 2006 2005 Tennessee Gas Pipeline 5,084 4,447 4,770 5,224 4,936 4,508 4,500 4,201 4,880 4,534 4,443 El Paso Gas Transmission Mexico, S. de R.L. 50 50 50 50 50 50 50 50 50 50 50 (1) El Paso Natural Gas 4,226 4,088 4,262 4,286 4,094 4,093 4,484 4,343 4,216 4,255 4,214 Colorado Interstate Gas (2) 4,762 4,779 4,957 5,124 3,807 4,142 4,579 4,665 4,906 4,301 3,734 Southern Natural Gas 2,339 2,120 2,537 2,381 2,151 2,064 2,307 2,146 2,345 2,167 1,984 Total 16,461 15,484 16,576 17,065 15,038 14,857 15,920 15,405 16,397 15,307 14,425 Equity Investments (Ownership Percentage) Citrus (50%) 887 979 1,224 1,020 892 1,103 1,148 892 1,028 1,009 958 Samalayuca & Gloria a Dios (50%) 217 223 237 237 215 223 227 220 231 221 212 San Fernando (50%) 475 475 475 475 475 475 475 475 475 475 475 Total 1,579 1,677 1,936 1,732 1,582 1,801 1,850 1,587 1,734 1,705 1,645 Total throughput 18,040 17,161 18,512 18,797 16,658 17,770 16,992 18,131 17,012 16,070 16,620 (1) Including Mojave Pipeline Company (MPC) (2) Including Wyoming Interstate Company (WIC) and Cheyenne Plains Gas Pipeline (CPG) 6
  • 7. EXPLORATION AND PRODUCTION EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES (Excludes Intrasegment Transactions) 2007 2006 Year-to-Date (In millions) First Second Third Fourth First Second Third Fourth 2007 2006 2005 Operating revenues Natural gas $ 408 $ 459 $ 431 $ 466 $ 366 $ 326 $ 357 $ 357 1,764 1,406 1,420 Oil, condensate and natural gas liquids (NGL) 88 111 129 166 90 118 119 103 494 430 371 Other (1) 9 5 15 13 10 18 (20) 10 42 18 (4) Total operating revenues 505 575 575 645 466 462 456 470 2,300 1,854 1,787 Operating expenses Depreciation, depletion and amortization 170 189 194 227 146 156 163 180 780 645 612 Production costs 86 84 79 95 64 79 92 96 344 331 261 Cost of products and services 24 19 25 24 22 22 23 20 92 87 47 General and administrative expenses 46 49 46 44 42 41 38 35 185 156 185 Other 2 5 3 3 1 3 2 4 13 10 11 Total operating expenses 328 346 347 393 275 301 318 335 1,414 1,229 1,116 Operating income 177 229 228 252 191 161 138 135 886 625 671 Equity earnings and other income, net 2 6 4 11 8 2 3 2 23 15 25 Earnings before interest expense and income taxes (EBIT) 179 235 232 263 199 163 141 137 909 640 696 (1) Includes mark-to-market earnings / (losses) on derivatives not designated as accounting hedges. 7
  • 8. EXPLORATION AND PRODUCTION AVERAGE DAILY VOLUMES, REALIZED PRICES AND COSTS PER UNIT Year-to-Date 2007 2006 First Second Third Fourth First Second Third Fourth 2007 2006 2005 Natural Gas Sales Volumes (MMcf/d) Onshore 321 324 322 359 297 303 308 312 332 305 268 Texas Gulf Coast 162 171 170 209 164 155 152 150 178 155 174 Gulf of Mexico and South Louisiana 134 150 156 129 91 112 138 154 142 124 124 International 13 12 12 11 26 19 19 14 12 20 43 Total Natural Gas Sales Volumes 630 657 660 708 578 589 617 630 664 604 609 Oil, Condensate and NGL Sales Volumes (MBbls/d) Onshore 7 7 6 8 6 7 7 7 7 7 5 Texas Gulf Coast 4 5 6 7 5 5 5 5 6 5 6 Gulf of Mexico and South Louisiana 8 8 8 8 7 9 8 9 8 8 9 International 1 1 1 - 1 1 1 1 - 1 2 Total Oil, Condensate and NGL Sales Volumes 20 21 21 23 19 22 21 22 21 21 22 Equivalent Sales Volumes (MMcfe/d) Onshore 363 368 362 405 334 345 349 354 374 345 300 Texas Gulf Coast 189 202 205 254 195 187 183 182 213 187 211 Gulf of Mexico and South Louisiana 182 202 206 175 133 165 189 209 191 174 179 International 16 14 14 13 32 22 23 17 14 24 53 Total Equivalent Sales Volumes 750 786 787 847 694 719 744 762 792 730 743 Unconsolidated Affiliate Volumes (Four Star Investment) Natural Gas (MMcf/d) 54 53 45 60 50 49 48 52 53 50 18 Oil, Condensate and NGL (MBbls/d) 3 3 3 3 3 3 3 3 3 3 1 Total Equivalent Sales Volumes (MMcfe/d) 70 71 61 77 71 66 66 68 70 68 24 Weighted Average Realized Prices Natural gas including hedges ($/Mcf) $ 7.19 $ 7.67 $ 7.12 $ 7.16 $ 7.03 $ 6.08 $ 6.30 $ 6.15 $ 7.28 $ 6.38 $ 6.39 Natural gas excluding hedges ($/Mcf) $ 6.46 $ 7.17 $ 5.92 $ 6.57 $ 7.77 $ 6.34 $ 6.31 $ 6.21 $ 6.53 $ 6.64 $ 7.53 Oil, condensate and NGL including hedges ($/Bbl) $ 49.32 $ 56.87 $ 66.26 $ 77.47 $ 51.25 $ 60.64 $ 60.81 $ 50.58 $ 63.11 $ 55.90 $ 45.60 Oil, condensate and NGL excluding hedges ($/Bbl) $ 50.07 $ 57.50 $ 66.82 $ 77.93 $ 52.60 $ 60.64 $ 60.81 $ 50.58 $ 63.71 $ 56.21 $ 46.43 Transportation costs Natural gas ($/Mcf) $ 0.31 $ 0.24 $ 0.29 $ 0.24 $ 0.24 $ 0.22 $ 0.23 $ 0.24 $ 0.27 $ 0.23 $ 0.18 Oil, condensate and NGL ($/Bbl) $ 0.76 $ 0.68 $ 0.84 $ 0.96 $ 1.25 $ 0.80 $ 0.71 $ 0.58 $ 0.81 $ 0.82 $ 0.63 Cash operating costs ($/Mcfe) Average lease operating costs $ 0.95 $ 0.85 $ 0.83 $ 0.89 $ 0.73 $ 0.87 $ 1.03 $ 1.12 $ 0.88 $ 0.95 $ 0.72 Average production taxes 0.32 0.33 0.26 0.33 0.29 0.33 0.32 0.24 $ 0.31 $ 0.29 $ 0.24 Total production costs 1.27 1.18 1.09 1.22 1.02 1.20 1.35 1.36 $ 1.19 $ 1.24 $ 0.96 Average general and administrative expenses 0.69 0.68 0.64 0.57 0.67 0.62 0.57 0.50 $ 0.64 $ 0.59 $ 0.68 Average taxes, other than production and income taxes 0.03 0.06 0.04 0.04 0.02 0.04 0.03 0.05 $ 0.05 $ 0.03 $ 0.03 Total cash operating costs $ 1.99 $ 1.92 $ 1.77 $ 1.83 $ 1.71 $ 1.86 $ 1.95 $ 1.91 $ 1.88 $ 1.86 $ 1.67 Depreciation, depletion and amortization ($/Mcfe) $ 2.53 $ 2.64 $ 2.69 $ 2.91 $ 2.34 $ 2.39 $ 2.37 $ 2.58 $ 2.70 $ 2.42 $ 2.26 8
  • 9. MARKETING EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES (Excludes Intrasegment Transactions) 2007 2006 Year-to-Date (In millions) First Second Third Fourth First Second Third Fourth 2007 2006 2005 Operating revenues $ (135) $ (16) $ (9) $ (59) $ 205 $ 18 $ (105) $ (176) $ (219) $ (58) $ (796) Operating expenses Operation and maintenance - 3 4 4 3 9 6 10 11 28 54 Depreciation, depletion and amortization 1 1 - 1 1 1 1 1 3 4 4 Taxes, other than income taxes - - - 1 1 - 1 (1) 1 1 1 Total operating expenses 1 4 4 6 5 10 8 10 15 33 59 Operating income (loss) (136) (20) (13) (65) 200 8 (113) (186) (234) (91) (855) Other income, net 1 25 5 1 8 5 5 2 32 20 18 Earnings before interest expense and income taxes (EBIT) $ (135) $ 5 $ (8) $ (64) $ 208 $ 13 $ (108) $ (184) $ (202) $ (71) $ (837) 9
  • 10. MARKETING OPERATING DATA 2007 2006 Year-to-Date ($ in millions) First Second Third Fourth First Second Third Fourth 2007 2006 2005 Price Risk Management Statistics Forward Trading Book $ (917) $ (894) $ (865) $ (875) $ (540) $ (523) $ (609) $ (433) $ (875) $ (433) $ (753) Average VAR (1) $ 5 $ 2 $ 2 $ 1 $ 11 $ 9 $ 6 $ 4 $ 2 $ 7 $ 19 Physical Gas Delivery (BBtu/d) 1,098 1,176 1,209 1,071 1,230 1,194 1,252 1,217 1,139 1,223 1,469 Physical Power Sales (MMWh) 1,312 1,315 1,261 1,297 10,392 7,991 3,500 1,957 5,185 23,840 58,832 Financial Settlements (BBtue/d) 1,812 2,560 2,137 2,002 5,759 5,517 5,313 5,173 2,128 $ 5,439 7,295 Analysis of Price Risk Management Activities and Forward Book Trading Portfolio Value at Risk (VAR)(1) One Day VAR-95% Confidence Level at 12/31/07 1 Average VAR-95% Confidence Level during 2007 2 High VAR-95% Confidence Level during 2007 6 Low VAR-95% Confidence Level during 2007 1 December 31, 2007 Risk Management Assets and Liabilities Forward Return of Cash Total Cash Trading Book Collateral (2) Expectations Mark to Market Value and Cash Liquidation 2008 $ (205) $ -$ (205) 2009 (189) 25 (164) 2010 (129) - (129) 2011 (110) - (110) 2012 (100) - (100) Remainder (142) - (142) Total $ (875) $ 25 $ (850) (1) VAR was calculated using the historical simulation methodology at a 95% confidence level and includes all MtM based trading contracts except for those trading contracts that relate to our E&P segment's forecasted sales volumes. (2) Return of cash collateral includes margin posted against our production related option contracts. 10
  • 11. POWER EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES (Excludes Intrasegment Transactions) 2007 2006 Year-to-Date (In millions) First Second Third Fourth First Second Third Fourth 2007 2006 2005 (1) $ (2) $ (1) $ (7) $ Gross margin and other revenue $ (2) $ (2) $ - $ - $ - $ (1) $ 63 Operating expenses Operation and maintenance 4 7 5 1 14 16 14 13 17 57 122 Depreciation, depletion and amortization - - 1 - - 1 - 1 1 2 2 Taxes, other than income taxes - - 1 - 1 - - - 1 1 2 Total operating expenses 4 7 7 1 15 17 14 14 19 60 126 Operating loss (5) (9) (9) (3) (15) (17) (14) (15) (26) (61) (63) Equity earnings and other income, net 23 25 (58) (1) 18 27 52 46 (11) 143 (26) $ (37) $ Earnings before interest expense and income taxes (EBIT) $ 18 $ 16 $ (67) $ (4) $ 3 $ 10 $ 38 $ 31 82 $ (89) EBIT by Region: $ -$ Domestic Power $ -$ -$ -$ -$ (6) $ (3) $ 11 $ 8 10 $ (114) International Power 21 22 (62) (4) 10 16 20 5 (23) 51 44 Power G&A and Other (3) (6) (5) - (1) (3) 7 18 (14) 21 (19) $ (37) $ Total Power $ 18 $ 16 $ (67) $ (4) $ 3 $ 10 $ 38 $ 31 82 $ (89) Discontinued operations EBIT $ - $ - $ - $ - $ (15) $ 4 $ (3) $ (4) $ - $ (18) $ (506) 11
  • 12. (1) CORPORATE AND OTHER EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES (Excludes Intrasegment Transactions) 2007 2006 Year-to-Date (In millions) First Second Third Fourth First Second Third Fourth 2007 2006 2005 Gross margin and other revenue $ 9 $ 12 $ 9 $ 11 $ 9 $ 8 $ (2) $ 8 $ 41 $ 23 $ 53 Operating expenses Operation and maintenance 26 28 34 25 12 41 7 39 113 99 567 Depreciation, depletion and amortization 6 5 4 4 10 5 4 7 19 26 42 Taxes, other than income taxes 2 4 (6) 1 1 2 1 3 1 7 21 Total operating expenses 34 37 32 30 23 48 12 49 133 132 630 Operating loss (25) (25) (23) (19) (14) (40) (14) (41) (92) (109) (577) Loss on debt extinguishment (201) (86) - (4) (6) (3) (17) - (291) (26) (29) Equity earnings and other income, net 16 7 74 3 20 9 14 4 100 47 85 (104) $ $ (20) $ - $ (34) $ (17) $ (37) $ (283) $ (88) $ (521) Earnings before interest expense and income taxes (EBIT) $ (210) $ 51 EBIT by Business Unit: Telecom $ 4$ 1$ - $ - $ 2$ 1$ (1) $ 3$ 5$ 5$ 8 Corporate (214) (105) 51 (20) (2) (35) (16) (40) (288) (93) (529) Total EBIT $ (210) $ (104) $ 51 $ (20) $ - $ (34) $ (17) $ (37) $ (283) $ (88) $ (521) (1) Includes our corporate businesses, telecommunications business and residual assets and liabilities of previously sold or discontinued businesses. 12