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Presentation to Delegation from Brazil June 14, 2007. Cautionary Statement Regarding Forward-looking Statements.

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cautionary statement regarding forward looking statements
Cautionary Statement RegardingForward-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, our ability to implement and achieve our objectives in the 2007 plan; changes in reserve estimates based upon internal and third party reserve analyses; our ability to meet production volume targets in our E&P segment; our ability to obtain necessary governmental approvals for proposed pipeline projects and our ability to successfully construct and operate such projects; the risks associated with recontracting of transportation commitments by our pipelines; regulatory uncertainties associated with pipeline rate cases; our ability to successfully exit the energy trading business; changes in commodity prices for oil, natural gas, 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 43 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.


Antonio Pinho

Vice President, International E & P

defining our purpose
Defining Our Purpose

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner

creating a new culture
Creating a New Culture

the place to workthe neighbor to havethe company to own

core business units

Exploration & Production

Core Business Units

a meaningful company

doing meaningful work

delivering meaningful results


el paso pipeline system
El Paso Pipeline System

TennesseeGas Pipeline

Wyoming Interstate

ColoradoInterstate Gas

Cheyenne Plains Pipeline


SouthernNatural Gas

Elba IslandLNG

El PasoNatural Gas

Mexico Ventures

Florida GasTransmission (50%)

  • Approximately 30,000 miles of interstate pipelines
  • 19% of total U.S. interstate pipeline mileage
  • 23 Bcf/d capacity (16% of total U.S.)
  • 16 Bcf/d throughput (28% of U.S. consumption)
  • Best market connection and supply access
  • Leading pipeline integrity program
many value added projects
Many Value Added Projects

More than $2 billion of committed growth

TGP Essex-Middlesex

$47 MM

November 2007

82 MMcf/d

TGP NE ConneXion New England$103 MM

November 2007

136 MMcf/d

WIC Kanda Lateral

$141 MM


January 2008

Up to 410 MMcf/d

WIC Medicine Bow Expansion—2008

$18 MM

July 2008

205 MMcf/d

CIG High Plains Pipeline$145 MM (50%)

December 2008/July 2009

965 MMcf/d

CP Shell Expansion

$21 MM

April 2008

70 MMcf/d

SNG Elba Expansion III & Elba Express

$930 MM


8.4 Bcf / 900 MMcfd

CIG Raton Expansion

$12 MM

December 2007

29 MMcf/d

SESH Interest

$170 MM

June 2008/October 2010

137 MMcf/d/ 490 MMcf/d


Mexico Lateral Loop

$36 MM

November 2008

127 MMcf/d

TGP Carthage Expansion

$35 MM

May 2009

100 MMcf/d

SNG Cypress Phase I / II

$244 MM/$19 MM

May 2007/May 2008

220 MMcf/d/116 MMcf/d

Mexico JV—LPG Reynosa

$53 MM (50%)

July 2007

30,000 Bbl/d


Eugene Island 371

$33 MM

September 2007

200 MMcf/d

SNG South System III

$133 MM–$286 MM

Oct 2010–Apr 2012

245 MMcf/d–367 MMcf/d


$63 MM

May 2007

60 MMcf/d


LA Deepwater Link

$55 MM

July 2007

850 MMcf/d

FERC Certificated/ Under Construction

Signed PA’s

Expected PA’s

Strong Positions

exploration production company
Exploration &Production Company

a meaningful company

doing meaningful work

delivering meaningful results


el paso e p top 10 independent








  • Total year production of 413 MMcfe/d
  • Year-end reserves of 1,711 Bcfe
  • R/P: 11.3



  • 2 exploration blocks


Texas Gulf Coast

  • Total year production of187 MMcfe/d
  • Year-end reserves of406 Bcfe
  • R/P: 6.0

Rio de Janeiro


  • Total year production of174 MMcfe/d
  • Year-end reserves of272 Bcfe
  • R/P: 4.3
El Paso E&P: Top 10 Independent

Total Company

  • Total year production of 798 MMcfe/d
  • Year-end reserves of 2,637 Bcfe*
  • R/P: 9.1


  • Total year productionof 24 MMcfe/d
  • Year-end reserves of 248 Bcfe
  • R/P: 28.7

*Includes our 43.1% share of Four Star; all data 2006 unless noted

pina na exploration upside cacau and a ai




Pinaúna Exploration Upside—Cacau and Açai
  • Current profile
    • Currently 12 MMBoe proved reserves booked
    • Estimate 37 MMBoe with conservative OWC
  • Exploration upside
    • 2-well exploration program underway
    • Could add incremental100 MMBoe (Pc = 34%)
  • El Paso currently 100% WI
  • Production to begin 4Q 2008
    • 15,000 Boe/d–25,000 Boe/d






Rio de Janeiro




2380 m OWC






-2420 m OWC

3D survey outline

Sergi depth


bia bm es 5 block prospectivity


Rio de Janeiro

Bia & BM-ES-5 Block Prospectivity

New Discovery

Well: 4-ESS-164A

Date: April 2006

Operator: Petrobrás

Block: BES-100, area 1

Reservoir: Upper Cretaceous sands

Status: Discovery 280 MMbo


Light oil discoveries in Espírito Santo Basinnow total 700 MMBoe, all since 2003

focus on continued improvement
Focus on Continued Improvement
  • Solid foundation of people and assets
  • Ability to replace reserves from identified inventory
  • Organization executing at higher level of activity
  • Build credibility on performance
  • Provide visibility on future growth
  • Improve capital and operating efficiency
what is pvr present value ratio
What is PVR (Present Value Ratio)
  • Represents the present value of future after-tax cash flows discounted at 10.5% over total investment
  • Target ratio is 1.15: Every $1.00 investedreturns $1.15 on an after-tax, discounted basisover the life of the project

Tony Chovanec

Managing Director – Marketing and Trading

production marketing
Production Marketing

22 Commercial Staff

what we do
What We Do
  • Sell E&P and partner production of approximately 0.9 Bcf/d and 25,000 Bbls/d of oil
  • Fulfill EP Marketing Legacy sales obligations of approximately .5Bcf/d
  • Provide price protection for EP production volumes using financial products such as collars, options, and swaps
  • Provide Marketing Scheduling/Operations Services for both Marketing and E&P
  • Monitor strategic transport and storage opportunities, and purchase capacity as appropriate
primary risks
Primary Risks
  • Significantly falling prices for our future production.A steep, prolonged decline in future price could impair our cash flows and severely limit our ability to pay down debt and grow
  • Significant Supply Losses or Inaccurate Production Forecasts.Could require that we purchase much higher priced replacement gas intramonth
  • Erosion of Transportation Value
  • Pipeline Constraints.Could impede our ability to get our equity gas moved from the production area
primary risks1
Primary Risks
  • CounterpartyCredit.Will the people we sell to pay us?
  • Employee Retention. Specialized skills sets
financial markets
Financial Markets
  • Volatile commodity markets
  • Significant credit risk
  • Substantial cash or collateral requirements to support trading ventures
  • Regulatory uncertainty and risk
  • Impact of increased Hedge Fund activity
2007 natural gas hedge program
2007 Natural Gas Hedge Program
  • Supports approximately 89%* of 2007 domestic natural gas production

133 BcfAverage cap $11.48 MMBtu


54.8 Bcf

$8.00 floor/$16.89 ceiling

78.4 Bcf

$7.70fixed price

89.4 Bcf

$7.50 floor

Balance atMarket Price


223 BcfAverage floor $7.69 MMBtu

Note: Assumes 1 Mcf = 1 MMBtu