El Paso to spin off its exploration, production business before year's end; new company will be named EP Energy Corp., listed on Nasdaq
August 11, 2011
– El Paso Corporation (NYSE: EP) today announced that it has taken important steps related to the planned spinoff of its E&P business before year-end 2011. Today, El Paso filed its initial Form 10 with the U.S. Securities and Exchange Commission. This filing provides information about the spinoff and provides a detailed look at all aspects of the E&P business.
El Paso also announced that the new company will be named EP Energy Corporation, and it will be listed on the NASDAQ stock exchange under the ticker symbol EPE.
"We're excited about the creation of two outstanding publicly traded companies through the spinoff of our E&P business," said Doug Foshee, chairman, president, and chief executive officer of El Paso Corporation. "We are also excited about the new name for our E&P company -- EP Energy. The new name leverages the equity we have built in the El Paso brand, and it speaks directly to what our E&P business does so well: finding and producing oil and natural gas."
Brent Smolik, who will become president and chief executive officer of EP Energy, said, "While our name will change, many things will not, including the fundamental pillars of our E&P strategy. We have more than 10 years of drilling inventory that we expect will deliver significant growth in oil and condensate revenues. We will continue to focus on maintaining a significant drilling inventory of repeatable programs, being a leader in safe and responsible energy development, and driving high-end performance across our operations."
Leadership and Governance
"El Paso Corporation and EP Energy will move forward with two outstanding boards," added Foshee. "By populating each board from the existing El Paso board, we take advantage of a history of good governance; we ensure each board has seasoned, knowledgeable members, and we maintain continuity for our shareholders."
The boards of directors expected to be in place for El Paso Corporation and EP Energy upon completion of the planned spinoff are shown below. Bios for the directors are available at http://www.elpaso.com/investor/board.shtm.
El Paso Corporation
Douglas L. Foshee - Chairman
J. Michael Talbert - Lead Director
Juan Carlos Braniff
Anthony W. Hall, Jr.
Thomas R. Hix
Ferrell P. McClean
Timothy J. Probert
Robert F. Vagt
John L. Whitmire
EP Energy Corporation
Douglas L. Foshee - Non-executive Chairman
David W. Crane
Robert W. Goldman
Ferrell P. McClean
Steven J. Shapiro
Brent J. Smolik
Robert F. Vagt
El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest interstate natural gas pipeline system, one of North America's largest independent exploration & production companies and an emerging midstream business. El Paso owns a 42 percent limited partner interest, and the 2 percent general partner interest in El Paso Pipeline Partners, L.P. El Paso Corporation's Board of Directors has granted initial approval of a plan to separate the company into two publicly traded companies through a tax-free spinoff of its exploration and production business to shareholders before year-end 2011. For more information, visit www.elpaso.com.