El Paso Corp. (EP) ended the year with a strong liquidity of approximately $1.8 billion, following the closing of a $103.5 million acquisition in the Altamont-Bluebell field. Management exclaimed that El Paso has started 2010 with a strong cash position and is making excellent progress towards its 2010 goals.
 
The acquisition consisted of oil assets with proved oil reserves of approximately 70 billion cubic feet equivalent at a price of $1.49 per thousand cubic feet equivalent. The company expects to quickly and efficiently integrate these assets into its existing operations. Furthermore, it expects to add more proved reserves to its credit by developing these assets.
 
El Paso has high-grade Exploration & Production assets and large inventory of pipeline projects that offer significant value in the long run. El Paso has been able to preserve financial flexibility and drive down operating costs to retain the competitive edge under the present challenging business environment. El Paso has been continuously evaluating capital allocations to ensure that the on-track projects are value accretive.
 
El Paso’s management has been actively divesting non-core assets and building a strong, more focused operation. We believe that El Paso’s management competencies and access to financing will enable successful execution its industry leading pipeline backlog going forward.
 
El Paso Cobased in Houston, Texas, is a major player in both the natural gas transmission and exploration and production space in the U.S. El Paso principally operates in two business lines – Pipelines and Exploration & Production (E&P) – which collectively account for its lion’s share of revenues, incomes and cash flows.
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