2. Our Goals and Agenda
Demonstrate clear progress on performance
Describe our path to become “Top Tier”
Detailed review of operations
Confirm performance expectations
59
3. Top 10 Domestic Independent
Total Company
Well-situated in key U.S. basins
Onshore—U.S.
Focused on unconventional and Nile
Delta
low-risk conventional programs Primarily coal seam and Sinai
tight-gas programs
~80% natural gas Gulf
Egypt
Low to medium-risk
97% drilling success rate of
Egypt Suez
repeatable plays
2.8 Tcfe of proved reserves
98% drilling success rate
798 MMcfe/d of production
2.4 Tcfe of proved reserves
9.6 R/P Egypt
651 MMcfe/d of production
Onshore conventional
10.1 R/P
exploration
1 MM acres
Brazil
First drilling 2H 2008
Rio de
Janeiro
Gulf of Mexico
Brazil Medium to high-risk exploration
Large acreage position
2 discoveries in 2007
46% success rate in 2007
15,000–20,000 BOE/d
beginning 2H 2009 151 Bcfe of proved reserves
247 Bcfe of proved reserves 133 MMcfe/d of production
14 MMcfe/d of production 3.1 R/P
Note: All data is pro forma 2007 to exclude production and reserves related to properties divested in 2008 and to
include a full year of production and reserves from our Peoples Energy Production Company (Peoples)
acquisition in 2007; also includes production and reserves from our proportionate share of Four Star 60
4. High Grading Our Portfolio
Divested 309 Bcfe of properties for $845 MM
(sales price and assumed asset retirement
obligation)—$2.73/Mcfe
Low inventory, high operating costs
Purchased Peoples for $887 MM
End result—more focused; more profitable,
faster growing; added 450 total gross drilling
locations
61
5. Our Production is
More Heavily Weighted to U.S. Onshore
2007 Reported 2007 Pro Forma
INTL INTL
2% 2%
GOM/SLA
GOM/SLA 17%
Central
22% 35% Central
38%
ONSHORE
ONSHORE TGC
81%
76% 25%
TGC
24%
Western Western
17% 18%
862 MMcfe/d 798 MMcfe/d
Note: Pro forma data excludes properties divested in 2008 and includes a full year from Peoples in 2007; also
includes proportionate share of Four Star 62
6. Our Reserves are Also
More Heavily Weighted to U.S. Onshore
2007 YE Reported 2007 YE Pro Forma
GOM/SLA GOM/SLA
9% 5%
INTL INTL
8% 9%
Central
42% Central
TGC 46%
16%
TGC
18% ONSHORE ONSHORE
83% 86%
Western
Western 24%
23%
3.1 Tcfe 2.8 Tcfe
Note: Pro forma data excludes properties divested in 2008; also includes proportionate share of Four Star 63
7. Significant Undrilled Inventory
6.1 Tcfe unrisked non-proved resources 3,400
2.8 Tcfe risked non-proved resources
Risked resources grew 12% in 2007
Resource Potential (Bcfe)
Excludes domestic divestiture properties
2,130
Non-Proved
Risked
Unrisked 1,460
869 835
495 530
Proved Unconventional Conventional Conventional
Undeveloped* Low-Risk Higher-Risk
Raton, Arkoma,
Black Warrior, Arklatex, Rockies, GOM, TGC,
New Albany TGC, Brazil Int’l Exploration,
Brazil, Egypt
*As of 12/31/07 and includes proportionate share of Four Star
64
8. 2007 Accomplishments
Production growth 8% Hit our targets
Reserves growth 18% Visible growth
Unit LOE dropped 7% Top quartile performance
Inventory growth of 12% Visible growth
Staff rose 10% Increasing capability
Significant international Pinaúna, Bia (Brazil)
exploration success
Portfolio high grading More focused, faster growth,
Peoples acquisition lower cost operator
Divestitures
We delivered on our commitments
65
9. Strategy for “Top Tier” Has Not Changed,
But it is Better Defined
Build and apply competencies in assets with
repeatable programs and significant project
inventory
Sharpen execution skills to improve capital
and expense efficiency and maximize
returns
Add assets with inventory that fit our
competencies and divest assets that do not
66
11. “Top Tier” Requires Rigor on all Facets
of “Business Delivery Model”
Growth Engine
Strategic Direction
Resource assessments
Clear view of future
in existing and new assets
business environment
Exploration and development
Long-term divisional roles
Acquisitions
New ideas and concepts
Optimization
Plan
Learn From Past
Effective capital and
Performance tracking
resource allocation
Lookbacks
Scorecards
Benchmarking
Scorecards
Team El Paso
Compelling culture
Strong leadership
Execution
Outstanding individual
Sharpen execution skills and team performance
Apply and build competencies Strong values
Focus on efficiency
Continuous improvement
68
12. Priority to Align Assets to Competencies
High
Strengthen Leverage Strengths
Competencies & Increase Activity
Repeatability
Develop
Rationalize
Inventory
Low
Competency
Weak Strong
69
13. Our Strategy Implies Strong Performance
in the Drivers of E&P Value
Drivers Targets
Production growth 8%–12% per year
Inventory Total resource > 2x proved
reserves
Cash costs Top quartile relative to E&P
peer group
Reserve Less than $3.00/Mcfe on
replacement costs current asset and capital mix
Value creation PVR > 1.15
70
14. E&P Production
Solid Growth Trajectory Through 2010
MMcfe/d
R
CAG
%–12%
8
860–920
862
798
2007 as 2007 2008E 2009E 2010E
Reported Pro Forma*
*Excludes volumes from domestic assets sold; assumes full year of Peoples and includes proportionate
share of Four Star
71
15. 12% Inventory Growth
Net Risked Bcfe
3,659
3,274
835
985
2,790
1,460
2,550
1,180
495
385
869
724
2006 YE 2007 YE
Proved Undeveloped Unconventional
Conventional Low Risk Conventional Higher Risk
Note: Includes Four Star resource potential; 2007 YE excludes assets divested in 2008
72
16. E&P Cash Costs
Continued Improvement and Focus
$/Mcfe, Excluding Transportation
$1.99 $1.75–
$1.94 $1.88
$1.86 $1.90
$1.77
2006 2007 2008E
Peer Average El Paso
Peer group: APA, APC, CHK, DVN, EOG, FST, NBL, NFX, PXD, XEC, XTO
Actual results from Peer company reports for 2006 and 2007; analyst models 2008E
73
17. Portfolio Provides Excellent Mix of
Long-Life and High-Return Programs
$6 60%
$5 50%
Rate of Return %
$4 40%
F&D/Mcfe
(ROR)
$3 30%
$2 20%
$1 10%
$0 0%
Coal Seam Tight Gas Texas Gulf Offshore
Arklatex Coast
F&D Costs Rate of Return
Note: Returns and F&D exclude leasing, seismic, workover, equipment, and admin capital; assumes Plan
pricing of $7.50/MMBtu and $70/Bbl
74
18. Shorter R/P ratios compare with
Higher F&D Costs
Peers with R/P ratios less than 11 typically have
finding and development costs higher than $3/Mcfe
14
3-Yr. U.S. Drill Bit F&DC
12
10
($/Mcfe)
8
6
EP
4
2
0
4 5 6 7 8 9 10 11
2007 U.S. R/P Ratio
(22 Companies)
Source: J.S. Herold
75
19. Domestic Reserve Efficiency Improving
F&D Costs/Mcfe Reserve Replacement Ratio
(Excluding Acquisitions) (Excluding Acquisitions)
129%
$3.98 $3.94
108%
$3.22
79%
2005 2006 2007 2005 2006 2007
F&D declined 19% over last two years vs. industry increase of 7%*
*Source: J.S. Herold 76
20. E&P Profitability
Growing Faster Than Peers
EBITDA*/Mcfe, Including Hedging
$5.75–
$6.04 $6.00
$5.84
$5.58 $5.61
$4.82
2006 2007 2008E
Peer Average El Paso
Peer group: APA, APC, CHK, DVN, EOG, FST, NBL, NFX, PXD, XEC, XTO
Actual results from Peer company reports for 2006 and 2007; analyst models 2008E
*EBITDA excludes exploration and dry hole expense for successful efforts companies; 2008E based on Plan
pricing of $7.50/MMBtu and $70.00/Bbl
77
21. E&P Consistently Adding Value
$ Billions
2004 SEC PV10 value1 $ 4.8
Significant value creation 2007 SEC PV10 value2 9.3
$3.3 billion in value created Change in reserves value $ 4.5
Longer reserve life
2005–2007 net investment
R/P extended by 30%
Capital expenditures (3.4)
Acquisition capital (2.2)
Higher quality portfolio
Asset sales 0.1
Less risk—more repeatable
opportunities Net investment (5.5)
Deeper inventory
2005–2007 EBITDA 4.3
2.8 Tcfe of non-proven
resource potential
Total value created $ 3.3
1YE SEC 2004 prices assumed $6.22/MMBtu HH and $43.45/Bbl WTI; value is pretax
2YE SEC 2007 prices assumed $6.80/MMBtu HH and $95.98/Bbl WTI; value is pretax
Note: Four Star included in SEC PV10 value
78
22. El Paso Will Become a “Top-Tier” Performer
Performance is steadily improving
Growth strategy is rational and aligned with
competencies
Significantly improved portfolio
Project inventory is high-quality and growing
Highly competent workforce
79
24. Program Assumptions
Highlighted programs cover 85% of 2008 capital
Program statistics are pro forma to exclude production from
properties divested in 2008; includes a full year from Peoples
Inventory
Locations are on gross basis
Resource potential is net to El Paso
Resource includes proved undeveloped reserves
Does not include value upside including infill drilling
Economics
Returns assume $7.50/MMBtu Henry Hub and $70.00/Bbl WTI
F&D costs = drilling and completion costs
Rate of return and PVR are risked; net to El Paso
81
26. U.S. Onshore Operating Areas
Total Onshore
$1,038 MM 2008 capital
(~63% of total company)
1,784 M net acres
Western 2.4 Tcfe proved reserves
Central
1.3 Tcfe risked non-proven
$207 MM 2008 capital
resource potential
915,000 net acres $420 MM 2008 capital
651 MMcfe/d production
675 Bcfe reserves 702,000 net acres
10 R/P
147 MMcfe/d 1,270 Bcfe reserves*
13 R/P 307 MMcfe/d*
12 R/P
8%–9% Production CAGR
(MMcfe/d)
1,000
800
600
Texas Gulf Coast
400
$411 MM 2008 capital
200
168,000 net acres
0 457 Bcfe reserves
2006 2007 2008 2009 2010 197 MMcfe/d
6 R/P
*Includes proportionate share of Four Star
Note: All data is pro forma 2007 to exclude production and reserves related to properties divested in 2008
83
and include a full year of production from our Peoples acquisition in 2007
27. Onshore Characterization
Targeting repeatable, low to mid-risk programs
High-quality, concentrated asset base
Material core positions in coal seam and tight gas
Multi-year project inventory
Strong positions in resource plays
Annual capital spend of $1 billion generating
EBITDA of $1.3 billion–$1.4 billion
Predictable, mid-single digit production growth
84
28. Raton (Unconventional)
Production
CO
(MMcfe/d)
100
80
60
Vermejo Park Ranch
40
20
0
NM 2006 2007 2008 2009 2010
Program Statistics: 2008 Plan:
854 operating wells 98 gross wells
100% avg. WI $84 MM net capital
74 PUD locations
Value Upside:
39 Bcfe PUD reserves
Niobrara (Pierre) Shale
165 non-proved locations
Cost reductions
143 Bcfe unrisked resource potential
80 acre CBM infill
143 Bcfe risked resource potential
15 R/P
85
30. Black Warrior Basin (Unconventional)
Production
Short Creek
(MMcfe/d)
60
50
White Oak Creek
Jefferson 40
30
20
AL
10
0
Blue Creek West
2006 2007 2008 2009 2010
Tuscaloosa
Program Statistics: 2008 Plan:
1,003 operating wells 80 gross wells
91% avg. WI $43 MM net capital
171 PUD locations
66 Bcfe PUD reserves Value Upside:
219 non-proved locations Lateral extension
104 Bcfe unrisked resource potential Infill potential
104 Bcfe risked resource potential
15 R/P
Note: Excludes Brookwood 87
32. Arklatex
AK
Production
(MMcfe/d)
Vacherie Dome/ 200
Bear Creek
150
TX
Minden/SE 100
Brachfield
LA 50
0
Holly/Bethany
2006 2007 2008 2009 2010
Longstreet/Logansport
Program Statistics: 2008 Plan:
1,047 operating wells 111 gross wells
80% avg. WI $319 MM net capital
426 PUD locations
222 Bcfe PUD reserves Value Upside:
404 non-proved locations Cotton Valley horizontals
540 Bcfe unrisked resource potential Haynesville Shale
504 Bcfe risked resource potential Infill potential
11 R/P
89
33. Arklatex Economics
Objective: Hosston, Cotton Valley Hosston
8,500 ft.
Depth: 7,500'–12,800'
Well costs: $2.5 MM–$3.1 MM Cotton Valley
10,500 ft.
Reserves: 1.0–1.4 Bcfe
Initial prod: 1–5 MMcfe/d
Type Curve
Spacing: 40–80 acres
1,000
IRR: 20%–30% 800
Mcfe/d
600
PVR: 1.15–1.25 400
200
F&D: $2.70–$3.10/Mcfe
0
1 2 3 4 5 6 7 8 9 10
Normalized Years
Note: PVR and rate of return based on $7.50 MMBtu and $70.00/Bbl 90
34. Haynesville Shale Play Outline—North
Louisiana
Approx. 36,000Claiborne
gross/
Webster
Marion
27,000 net acres of
Caddo
Haynesville leases
Bossier
Chesapeake Petrohawk
TX Discovery
Discovery
Harrison
Bienville
LA
Red River
Panola
Encana Test
Desoto
Comstock
Test
Natchitoches
Shelby
91
35. South Texas Wilcox
Production
(MMcfe/d)
Zapata 120
100
Bustamante
Las Comitas 80
60
40
20
0
Bob West 2006 2007 2008 2009 2010
Program Statistics: 2008 Plan:
253 operating wells 38 gross wells
95% avg. WI $155 MM net capital
32 PUD locations
Value Upside:
43 Bcfe PUD reserves
Infill drilling
162 non-proved locations
Cost reduction in drilling and
255 Bcfe unrisked resource potential completion programs
161 Bcfe risked resource potential Redevelopment based on 2007
8 R/P field study
92
36. South Texas Wilcox Economics
Perdido
Objective: Wilcox Sand Series 12,500 ft.
Depth: 10,000'–15,000’
Well costs: $5.1 MM–$6.1 MM
Reserves: 2.1–3.1 Bcfe Lobo
14,000 ft.
Initial production: 3–15 MMcfe/d
Type Curve
4
Spacing: 40 acres
3
MMcfe/d
IRR: 50%–70%
2
PVR: 1.40–1.60
1
F&D: $3.05–$3.55/Mcfe 0
1 2 3 4 5 6 7 8 9 10
Normalized Years
93
44. GOM/SLA Position
Gulf of Mexico/SLA Statistics
TX LA
383,000 net acres offshore New Orleans
21,000 net acres SLA
Houston
133 MMcfe/d
151 Bcfe reserves
625 Bcfe risked non-proved
resource potential
3 R/P
Corpus Christi
Production
(MMcfe/d)
140
120
100
80
60
40
20
0
2006 2007 2008 2009 2010
Note: All data is pro forma 2007 to exclude production and reserves related to properties divested
in 2008 and include a full year of production from our Peoples acquisition in 2007 101
45. GOM/SLA Characterization
Program emphasis on:
Miocene and Plio-Pleistocene
Discrete structural and stratigraphic plays
Geophysical-driven programs
Higher rate, higher return wells
Geared for $225 MM–$275 MM of capital spending
generating $325 MM–$425 MM EBITDA
Repeatable portfolio of prospects
Essentially flat production
102
46. Miocene Areas of Interest
LA New Orleans
TX
Houston
Western Miocene
Corpus Christi
Central Miocene
2008 Plan:
Program Statistics:
12 gross wells
90% Avg. WI
$145 MM net capital
2 PUD locations
6 Bcfe PUD reserves
Value Upside:
42 non-proved locations
Utilization of deep drill technologies
1,017 Bcfe unrisked resource potential into new areas
398 Bcfe risked resource potential Exploration success
103
47. GOM Miocene Economics
Objective: Miocene Sands
Depth Range: 11,000'–22,000' TVD
Well Costs: $25 MM–$35 MM
Mean Reserves: 10–90 Bcfe
17,000 ft.
Initial Production: 10–40 MMcfe/d
IRR: 40%–60%
17,400 ft.
PVR: 1.20–1.40
F&D: $3.00–$5.00/Mcfe
Chance of Success: 35%–55%
104
48. Plio-Pleistocene Area of Interest
LA New Orleans
Houston
TX
Corpus
Christi
Plio-Pleistocene
Program Statistics: 2008 Plan:
6 gross wells
100% avg. WI
$72 MM net capital
33 non-proved locations
240 Bcfe unrisked resource potential Value Upside:
Exploration success
118 Bcfe risked resource potential
105
49. GOM Plio-Pleistocene Economics
Objective: Plio-Pleistocene Sands
Depth Range: 6,800'–13,500' TVD
Well Costs: $7 MM – $16 MM 7,000 ft.
Mean Reserves: 2–12 Bcfe
Initial Production: 2–20 MMcfe/d
IRR: 50%–75%
7,600 ft.
PVR: 1.4–1.6
F&D: $3.00–$4.00/Mcfe
Chance of Success: 50%–70%
106
51. International Characterization
Exploration and development opportunities in
Brazil and Egypt
Bia and Pinaúna development underway (Brazil)
Risked resource potential of 1 Tcfe with more than
35 prospects/leads
Up to 5 years of drilling inventory with up to 200 unrisked wells
Egypt drilling program commences 4Q 2008
Yearly capital spend of $300 MM–$350 MM over
next 3 years
Material production and reserve growth expected
108
52. Exploration and Production in Brazil
Potiguar
2 Production Blocks
2 Development Blocks
2 Exploration Blocks
Pescada-Arabaiana
Production
Camamu
4 Development Areas
4 Exploration Blocks
Pinaúna Development
Brazil Stats
361,000 Net Acres
Espirito Santo
14 MMcfe/d Rio de
1 Exploration Block
Janeiro
247 Bcfe Reserves
695 Bcfe risked non-proved Bia Development
resource potential
47 R/P
109
53. Pinaúna Project
Brazil Project Statistics:
59–90 MMBOE total resource potential
Rio de
13 MMBOE proved reserves
Janeiro
1-BAS-64
BAS-
15–20 MBOE/D peak production
Pinaúna
Pinaú
First oil in 2nd half of 2009
1-BAS-74
BAS-
1-BAS-73
BAS-
100% WI
Exploring sell down
Açaí
Cacau
2008 Activity:
1-ELPS-17DA
ELPS-
1-ELPS-16D
ELPS-
$100 MM–$200 MM net capital
Integrate Cacau & Acai into development
Re-sanction expanded Project
Açaí
2.5 km
East
Continue with permitting and long lead
sourcing
Resource Outlook
Proven Oil Additional
Resource
Tested Gas
110
54. Bia/Camarupim Development
BM-ES-5
BM- ES-
Petrobras: 65% Operator
El Paso: 35%
Brazil
Rio de
Janeiro
4-ESS-177
Project Statistics:
Bia /
150–200 MMcf/d (gross) peak
Camarupim
First gas in 2009
6-ESS-168
Petrobras operated
4-ESS-164
2008 Activity:
$100 MM–$150 MM net capital
BES-100 Camarupim DOC
BES-
Unitization agreement with Petrobras
Petrobras: 100%
2 KMS
Gas sales contract negotiations
Sanction development plan
Gas
Discovery well
111
55. BM-ES-5 Exploration
Asset Overview:
th
ep
BM-ES-5 rd
3 prospect areas with cretaceous
te
a
w
Petrobras 65% WI m
60
and tertiary objectives
El Paso 35% WI 3 prospects
35% working interest
7 leads
300 Bcfe risked resource potential
400 Bcfe unrisked resource
potential
Brazil 4-ESS-177
6-ESS-168
2008 Activity:
4-ESS-164
Rio de
Drill 1 exploration well in 2008
Janeiro 5 KMS
$20 MM–$25 MM net capital
Bia/Camarupim Field (U. Cretaceous)
Windsor Discovery (Eocene)
Value Upside:
Discovery well
7 emerging leads
112
56. Brazil: Southern Camamu Exploration
MANATI FIELD
(PETROBRAS OPER)
IN DEVELOPMENT
Brazil
Discovery Trend
Asset Overview:
(U. Jur., L. Cret.)
CAMARAO FIELD
Multiple plays (L&U Cretaceous, Tertiary)
EP WI 100%
Rio de 4 prospects in inventory in CAL-5 & 6
Janeiro
PINAUNA FIELD
EP WI 100%
More than 125,000 net non-operated acres
CARAMURU DISCOVERY (ACAI)
18%–20% WI
EP WI 100%
144 Bcfe net risked resource potential
SARDINHA FIELD
EP (OP) WI 40%
683 Bcfe net unrisked resource potential
2008 Activity:
Drill 1 exploration well
$8 MM–$12 MM net capital
CAL-M-312
BM-CAL-5 Value Upside:
11 emerging leads
4 prospects
11 leads
Discovery / Field trend
BM-CAL-6 CAL-M-372
Gas Field
Oil Field / discovery
113
57. Egypt: South Mariut
Nile
Delta
Gas Field
Sinai
Gulf
Egypt Oil Field
of
Egypt Suez Significant recent discoveries
Asset Overview:
10 prospective areas
South Mariut—100% WI 100% WI
1.18 MM acres (4,785 km2)
Area:
174 Bcfe net risked resource
Status: Signed April 2007
Phase 1, 3 year term
potential
Work Program: 3D seismic survey
5 wells
757 Bcfe net unrisked resource
potential
NILE
DELTA
10 prospective areas 2008 Activity:
Alexandria
PLAY $20 MM–$25 MM in net capital
3D seismic acquisition
Rig procured
First well to spud 4Q 2008
WESTERN
DESERT
20 KMS
PLAY
114