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El Paso Corporation




        John Hopper
Vice President & Treasurer

      Bank of America
2008 Credit Conference
     November 20, 2008
Cautionary Statement Regarding
Forward-looking Statements
This presentation includes certain forward-looking statements and projections. 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 release, including, without
limitation, changes in unaudited and/or unreviewed financial information; our ability to meet our 2009 debt maturities; volatility in, and access to, the
capital markets; our ability to implement and achieve our objectives in our 2008 plan, including achieving our earnings and cash flow targets; the effects of
any changes in accounting rules and guidance; our ability to meet production volume targets in our Exploration and Production segment; our ability to
comply with the covenants in our various financing documents; our ability to obtain necessary governmental approvals for proposed pipeline and E&P
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; actions by the credit rating agencies; the successful close of our financing
transactions; our ability to close asset sales, as well as transactions with partners on one or more of our expansion projects that are included in the plan
on a timely basis; credit and performance risk of our lenders, trading counterparties, customers, vendors and suppliers ;changes in commodity prices and
basis differentials for oil, natural gas, and power; our ability to obtain targeted cost savings in our businesses; inability to realize anticipated synergies
and cost savings on a timely basis or at all; 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, including the risk of a global recession and negative impact on natural gas
demand; 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 49 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.

Cautionary Note to U.S. Investors—The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to
disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. We use certain terms in this presentation that the SEC's guidelines strictly prohibit us from
including in filings with the SEC. U.S. Investors are urged to consider closely the disclosures regarding proved reserves in this presentation and the
disclosures contained in our Form 10-K for the year ended December 31, 2007, File No. 001-14365, available by writing; Investor Relations, El Paso
Corporation, 1001 Louisiana St., Houston, TX 77002. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

Non-GAAP Financial Measures
This presentation includes certain Non-GAAP financial measures as defined in the SEC’s Regulation G. More information on these Non-GAAP financial
measures, including EBIT and EBITDA, and the required reconciliations under Regulation G, are set forth in this presentation or in the appendix hereto. El
Paso defines Resource Potential or Resource Inventory as subsurface volumes of oil and natural gas the company believes may be present and eventually
recoverable. The company utilizes a net, geologic risk mean to represent this estimated ultimate recoverable amount.




                                                                                                                                                       2
Defining Our Purpose




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




                                           3
Our Vision & Values




      the place to work
 the neighbor to have
  the company to own




                          4
Beyond the Credit Crisis

           Credit crisis is a big issue for entire market
           El Paso has implemented comprehensive plan
                   Will meet our maturities
                   Will fund our pipeline backlog
                   Will preserve E&P opportunities
           Looking past the storm
                   Pipeline backlog generates $1.2 billion EBITDA*
                   E&P opportunities have expanded
                   Credit metrics improve


*Pro rata to El Paso’s interest                                      5
Liquidity Update

          $1.9 billion liquidity at 9/30/08
                 $1.2 billion cash
                 $0.7 billion revolving credit facilities
          $2.5 billion in revolving facilities maturing 2012
          $1.0 billion in LC facilities
                 Roll-off with collateral needs in 2009 and 2011
          Diverse group of 31 banks
          Primary covenants*
                 Debt to EBITDA < 5.25x LTM 3.4x
                 EBITDA to fixed charges > 2.0x LTM 3.1x

*As defined in El Paso Corporation’s $1.5 billion Revolving Credit Agreement   6
Debt Maturity Schedule
                                                               $ Millions

                                      $956*
       $1,000
         $900
         $800
         $700
         $600
         $500
         $400
                                                            $251
         $300
                               $115
         $200
                     $4                       $4    $4
         $100
           $0
                  4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009   2010




*Excludes $89 MM of euro hedge gain                                 7
2008–2009 Outlook
   Projected 2008 EPS ± $1.25
   Capital spending slow down underway
   $3 billion 2009 capital program
      $1.7 billion Pipelines; $1.3 billion E&P
   Plan to meet 2009 maturities primarily through
   capex reductions
      Minor asset sales
      Partner(s) on growth projects
   Do not anticipate need to access capital markets
   until 2H 2009
      Will be opportunistic in capital markets
   And have numerous additional liquidity options
                                                      8
Has the Need for
New Infrastructure Changed?


   No
   Natural gas fueling most incremental
   electric generation
   New infrastructure required to meet
   producers’ needs
        Especially in the Rockies

           Fundamentals remain strong

                                          9
Executing on $8 Billion Backlog of
Committed Growth
                                 Construct at 7x run rate EBITDA

                                      Ruby Pipeline
                                        $3 Billion                                                                          TGP Concord
                                          2011                                                                                 $21 MM
                                                                                            TGP Line 300 Expansion
                                      1.3–1.5 Bcf/d                                                                           Nov 2009
                                                                                                   $750 MM
                                                                                                                             30 MMcf/d
                                                                                                  2010–2011
                                                                                                  290 MMcf/d
         WIC System Expansion
                                       CIG High Plains Pipeline
                $71 MM
                                           $216 MM (100%)
              2010–2011                                                                                           Elba Expansion III & Elba
                                           November 2008
              320 MMcf/d                                                                                                    Express
                                             900 MMcf/d
                                                                                                                          $1.1 Billion
                                                                                                                          2010–2013
          WIC Piceance Lateral
                                          CIG Totem Storage                                                     8.4 Bcf / 0.9 Bcf/d & 1.2 Bcf/d
                $62 MM
                                           $154 MM (100%)
                4Q 2009
                                              July 2009
              220 MMcf/d
                                                                                                                     SNG Cypress Phase III
                                             200 MMcf/d
                                                                                                                           $86 MM
                                                                                                                            2011
                                   CIG Raton 2010
                                                                                                                         160 MMcf/d
                                     Expansion
                                                                                 TGP Blue Water / 800 Ln Exp
                                      $146 MM
                                                                                           $25 MM
                                      2Q 2010
                                                                                                                   SNG South System III/
                                                                                          Dec 2008
                                                                  TGP Carthage
                                     130 MMcf/d
                                                                                                                       SESH Phase II
                                                                                        340 MMcf/d
                                                                   Expansion
                                                                                                                     $352 MM / $69 MM
                                                                     $39 MM
                                                                                                                        2011–2012
                                                                    May 2009
                                                                                          Gulf LNG                370 MMcf/d / 350 MMcf/d
                                                                   100 MMcf/d
                                                                                      $1+ Billion (100%)
                                                                                             2011
          El Paso Pipeline Partners, LP                                                                          FGT Phase VIII
                                                                                      6.6 Bcf / 1.3 Bcf/d
                                                                                                                   Expansion
                                                                                                               $2.4 Billion (100%)
          El Paso Pipeline                                                                                            2011
                                                                                                                   800 MMcf/d


Note: As of November 6, 2008; El Paso Pipeline Partners owns 25% of SNG & 40% of CIG                                                   10
Pipeline Construction Report Card
Remains Excellent
                   2008 Projects

            WIC Kanda Lateral              In-service
            Cheyenne Plains—Coral          In-service
            SNG Cypress Phase II           In-service
            WIC Medicine Bow               In-service
            CIG High Plains Pipeline             4Q
            TGP Blue Water/800 Line Exp          4Q

      4 operated pipelines completed—on-budget

                                                        11
Construction Risk Management

                        El Paso Capital
                          ($ Billions)    Steel        Construction
 Elba Expansion             $ 1.1         Fixed-Price EPC Contract
 Elba Express                             Fixed        United-Priced

 Gulf LNG (50%)             $ 0.5         Fixed-Price EPC Contract

 Ruby                       $ 3.0         Fixed       Incentive-Based

 FGT Phase VIII (50%)       $ 1.2         Fixed       Unit-Priced

 TGP Line 300               $ 0.8         Fixed       Negotiating


          Backlog has been significantly de-risked


                                                                        12
E&P 2008 Progress


   Completed 2007/2008 portfolio high grading
   Reduced unit LOE and G&A
   Expanded non-proved resources
     Cotton Valley horizontals
     Haynesville shale
     Niobrara shale
     Raton in-fill
     Altamont in-fill

                                                13
Significant Resource Inventory*

                                            Infill drilling (CBM, Altamont, Arklatex)
                                            Emerging shale gas plays
            Upside                          (Niobrara and Haynesville)
           Potential                        International exploration leads


            2.8 Tcfe                        6.1 Tcfe unrisked non-proved resources
           Unproved
                                            2.0 Tcfe risked unconventional and low risk
           Inventory


                                            Heavily weighted to U.S. Onshore (86%)
            2.8 Tcfe
            Proved                          869 Bcfe Proved Undeveloped Reserves
           Reserves                         R/P of 9.6


*As of 12/31/2007 adjusted for 2008 domestic divestitures                                 14
2009 Program Overview


   Favor lower-risk, repeatable programs
      More Onshore, resource-based
      Less TGC and GOM
   Delivers production in line with 2008
   Generates very predictable cash flow
   Preserves opportunity for future ramp up


                                              15
Significant Inventory of
Lower-Risk Programs



          Altamont
           100%

                                                      Arlatex             Black Warrior
                        Raton
                                                      100%                  100%
                        100%



                                                      Texas Gulf Coast
                                                      (non-exploration)
                                                         94%


Note: 2008 success rates through September 30, 2008
                                                                                          16
Continue to Develop Shale Opportunities
                           Haynesville                                                   Niobrara

                                                                                                 CO
                          Marion
Ups
                                                               Claiborne
hur
                                                     Webster
                                   Caddo
                      Harrison             Bossier
                                                                                    NM
 Travis Lynch #4H
     Gregg
    Completed
   IP 8 MMcfe/d
                                                               Bienville
          Rusk
                        Panola
      Miller 10H #1                               Red
                                           Desoto River
       Completed
      IP 4 MMcfe/d                                    Gamble 24H
      Current prospective area                          Drilling
                                                                           Niobrara Shale
      El Paso operated wellsShe                        Natchitoches
                                                                           Test well locations
      Horizontal wells drilled by others
                            lby

                 Approximately 42,500 net acres                            3 wells drilled and completed
                                                                               2 horizontal and 1 vertical
                 2 wells completed
                                                                           Initial flow rates of 0.4–1.8 MMcfe/d
                 1 well drilling                                           $2 MM–$3 MM completed well costs
                 Significant resource potential                            > 300,000 prospective net acres


                                                                                                             17
Brazil to Become a Meaningful
Contributor


                             Pinaúna (100%)
                               15–20 MBOE/d peak production
                               Slowed pace of development
       Brazil


                             Copaiba Well (18%)
                               Drilled and testing
           Rio de
          Janeiro
                                  Camarupim (24%)
                                    35–50 MMcfe/d in 1Q 2009
                Tot Well (35%)
                  Drilling and
                  evaluating


                                                               18
Significant Value in 2009 Hedges
                                                                      Positions as of October 2, 2008
                                                  151 TBtu
             Ceiling                      Average cap $14.97/MMBtu

                                                 143 TBtu
                          168 TBtu                                   8 TBtu
 2009 Gas                                           $15.41
                              $9.10                                    $7.33
                                                    ceiling
                              floor                                 fixed price

                                                 176 TBtu
               Floor
                                                                                    Balance at
                                         Average floor $9.02/MMBtu
                                                                                   Market Price

                                                 3.4 MMBbls
   2009 Oil                                          $109.93
                                                   fixed price



          ~70% of domestic natural gas and ~60% domestic oil production hedged*
          2009 hedge program valued at ~$500 MM at November 3, 2008

Note: See full Production-related Derivative Schedule in Appendix
* Includes proportionate share of Four Star equity volumes                                        19
Summary


  Will meet 2009 maturities

  Will execute pipeline backlog

  While preserving E&P opportunities

      Long-term growth potential in tact

                                           20
El Paso Corporation




        John Hopper
Vice President & Treasurer

      Bank of America
2008 Credit Conference
     November 20, 2008
Appendix
Disclosure of Non-GAAP
Financial Measures

 The SEC’s Regulation G applies to any public disclosure or release of material information that includes a non-GAAP
 financial measure. In the event of such a disclosure or release, Regulation G requires (i) the presentation of the most
 directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of
 the differences between the non-GAAP financial measure presented and the most directly comparable financial
 measure calculated and presented in accordance with GAAP. The required presentations and reconciliations are
 attached. Additional detail regarding non-GAAP financial measures can be reviewed in El Paso’s full operating
 statistics, which will be posted at www.elpaso.com in the Investors section.

 El Paso uses the non-GAAP financial measure “earnings before interest expense and income taxes” or “EBIT” to
 assess the operating results and effectiveness of the company and its business segments. The company defines EBIT
 as net income (loss) adjusted for (i) items that do not impact its income (loss) from continuing operations, such as
 extraordinary items and discontinued operations; (ii) income taxes; and (iii) interest and debt expense. The company
 excludes interest and debt expense so that investors may evaluate the company’s operating results without regard to
 its financing methods or capital structure. EBITDA is defined as EBIT excluding depreciation, depletion and
 amortization. El Paso’s business operations consist of both consolidated businesses as well as investments in
 unconsolidated affiliates. As a result, the company believes that EBIT, which includes the results of both these
 consolidated and unconsolidated operations, is useful to its investors because it allows them to evaluate more
 effectively the performance of all of El Paso’s businesses and investments.

 El Paso believes that the non-GAAP financial measures described above are also useful to investors because these
 measurements are used by many companies in the industry as a measurement of operating and financial performance
 and are commonly employed by financial analysts and others to evaluate the operating and financial performance of
 the company and its business segments and to compare the operating and financial performance of the company and
 its business segments with the performance of other companies within the industry.

 These non-GAAP financial measures may not be comparable to similarly titled measurements used by other companies
 and should not be used as a substitute for net income, earnings per share or other GAAP operating measurements.




                                                                                                                           23
Reserves Pro Forma Reconciliation

                                                                  Onshore
                                                       Central      Western       TGC           GOM      Int’l   Total
    Reserves (Bcfe)1
      Ending reserves 1/1/08                             1,328          715        550            269    247     3,109
      Adjustments2                                         (58)          (40)      (93)          (118)     –      (309)
      Pro forma ending reserves 1/1/08                   1,270          675        457            151    247     2,800




1 Reserves data includes proportionate share of Four Star
2 Adjustments reflect elimination of divestiture properties and addition of Peoples for full-year 2007
                                                                                                                     24
Production-Related Derivative Schedule
                                           2008                             2009                         2010                2011–2012
                               Notional       Avg. Hedge         Notional        Avg. Hedge   Notional     Avg. Hedge   Notional   Avg. Hedge
Natural Gas                    Volume            Price           Volume             Price     Volume          Price     Volume        Price
                                (TBtu)        ($/MMBtu)           (TBtu)         ($/MMBtu)     (TBtu)      ($/MMBtu)     (TBtu)    ($/MMBtu)
Designated—EPEP
   Fixed price—Legacy               1.1           $ 3.49              4.6          $ 3.56       4.6             $3.70      6.8       $3.88
   Fixed price                      5.3           $ 8.37
   Ceiling                         27.5           $ 10.87          101.0           $ 14.58
   Floor                           27.5           $ 8.00           125.8           $ 8.93
Economic—EPEP
   Fixed price                      1.8           $ 8.24              3.6          $ 12.06
   Ceiling                          6.5           $ 10.32            41.9          $ 17.40
   Floor                            6.5           $ 8.00             41.9          $ 9.61

Avg. ceiling                       42.2           $ 10.16          151.1           $ 14.97      4.6             $3.70      6.8       $3.88
Avg. floor                         42.2           $ 7.93           175.9           $ 9.02       4.6             $3.70      6.8       $3.88

                                           2008                              2009
                                 Notional Avg. Hedge               Notional Avg. Hedge
Crude Oil                                    Price
                                 Volume                            Volume      Price
                                            ($/Bbl)
                                (MMBbls)                          (MMBbls)    ($/Bbl)
Designated—EPEP
   Fixed price                     0.43           $ 88.57            1.39          $110.00
Economic—EPEP
   Fixed price                     0.20           $ 88.28            2.04          $109.87
Economic—EPM
   Ceiling                         0.22           $ 56.10
   Floor                           0.22           $ 55.00

Avg. ceiling                       0.85           $ 80.10            3.43          $109.93
Avg. floor                         0.85           $ 79.81            3.43          $109.93


                                                                                                                                         25
 Note: Positions are as of October 2, 2008 (Contract months: Oct 2008–Forward)

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el paso 11_20_Hopper_BofACreditConferenceFINALv2(Web)

  • 1. El Paso Corporation John Hopper Vice President & Treasurer Bank of America 2008 Credit Conference November 20, 2008
  • 2. Cautionary Statement Regarding Forward-looking Statements This presentation includes certain forward-looking statements and projections. 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 release, including, without limitation, changes in unaudited and/or unreviewed financial information; our ability to meet our 2009 debt maturities; volatility in, and access to, the capital markets; our ability to implement and achieve our objectives in our 2008 plan, including achieving our earnings and cash flow targets; the effects of any changes in accounting rules and guidance; our ability to meet production volume targets in our Exploration and Production segment; our ability to comply with the covenants in our various financing documents; our ability to obtain necessary governmental approvals for proposed pipeline and E&P 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; actions by the credit rating agencies; the successful close of our financing transactions; our ability to close asset sales, as well as transactions with partners on one or more of our expansion projects that are included in the plan on a timely basis; credit and performance risk of our lenders, trading counterparties, customers, vendors and suppliers ;changes in commodity prices and basis differentials for oil, natural gas, and power; our ability to obtain targeted cost savings in our businesses; inability to realize anticipated synergies and cost savings on a timely basis or at all; 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, including the risk of a global recession and negative impact on natural gas demand; 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 49 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. Cautionary Note to U.S. Investors—The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosures regarding proved reserves in this presentation and the disclosures contained in our Form 10-K for the year ended December 31, 2007, File No. 001-14365, available by writing; Investor Relations, El Paso Corporation, 1001 Louisiana St., Houston, TX 77002. You can also obtain this form from the SEC by calling 1-800-SEC-0330. Non-GAAP Financial Measures This presentation includes certain Non-GAAP financial measures as defined in the SEC’s Regulation G. More information on these Non-GAAP financial measures, including EBIT and EBITDA, and the required reconciliations under Regulation G, are set forth in this presentation or in the appendix hereto. El Paso defines Resource Potential or Resource Inventory as subsurface volumes of oil and natural gas the company believes may be present and eventually recoverable. The company utilizes a net, geologic risk mean to represent this estimated ultimate recoverable amount. 2
  • 3. Defining Our Purpose El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner 3
  • 4. Our Vision & Values the place to work the neighbor to have the company to own 4
  • 5. Beyond the Credit Crisis Credit crisis is a big issue for entire market El Paso has implemented comprehensive plan Will meet our maturities Will fund our pipeline backlog Will preserve E&P opportunities Looking past the storm Pipeline backlog generates $1.2 billion EBITDA* E&P opportunities have expanded Credit metrics improve *Pro rata to El Paso’s interest 5
  • 6. Liquidity Update $1.9 billion liquidity at 9/30/08 $1.2 billion cash $0.7 billion revolving credit facilities $2.5 billion in revolving facilities maturing 2012 $1.0 billion in LC facilities Roll-off with collateral needs in 2009 and 2011 Diverse group of 31 banks Primary covenants* Debt to EBITDA < 5.25x LTM 3.4x EBITDA to fixed charges > 2.0x LTM 3.1x *As defined in El Paso Corporation’s $1.5 billion Revolving Credit Agreement 6
  • 7. Debt Maturity Schedule $ Millions $956* $1,000 $900 $800 $700 $600 $500 $400 $251 $300 $115 $200 $4 $4 $4 $100 $0 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 2010 *Excludes $89 MM of euro hedge gain 7
  • 8. 2008–2009 Outlook Projected 2008 EPS ± $1.25 Capital spending slow down underway $3 billion 2009 capital program $1.7 billion Pipelines; $1.3 billion E&P Plan to meet 2009 maturities primarily through capex reductions Minor asset sales Partner(s) on growth projects Do not anticipate need to access capital markets until 2H 2009 Will be opportunistic in capital markets And have numerous additional liquidity options 8
  • 9. Has the Need for New Infrastructure Changed? No Natural gas fueling most incremental electric generation New infrastructure required to meet producers’ needs Especially in the Rockies Fundamentals remain strong 9
  • 10. Executing on $8 Billion Backlog of Committed Growth Construct at 7x run rate EBITDA Ruby Pipeline $3 Billion TGP Concord 2011 $21 MM TGP Line 300 Expansion 1.3–1.5 Bcf/d Nov 2009 $750 MM 30 MMcf/d 2010–2011 290 MMcf/d WIC System Expansion CIG High Plains Pipeline $71 MM $216 MM (100%) 2010–2011 Elba Expansion III & Elba November 2008 320 MMcf/d Express 900 MMcf/d $1.1 Billion 2010–2013 WIC Piceance Lateral CIG Totem Storage 8.4 Bcf / 0.9 Bcf/d & 1.2 Bcf/d $62 MM $154 MM (100%) 4Q 2009 July 2009 220 MMcf/d SNG Cypress Phase III 200 MMcf/d $86 MM 2011 CIG Raton 2010 160 MMcf/d Expansion TGP Blue Water / 800 Ln Exp $146 MM $25 MM 2Q 2010 SNG South System III/ Dec 2008 TGP Carthage 130 MMcf/d SESH Phase II 340 MMcf/d Expansion $352 MM / $69 MM $39 MM 2011–2012 May 2009 Gulf LNG 370 MMcf/d / 350 MMcf/d 100 MMcf/d $1+ Billion (100%) 2011 El Paso Pipeline Partners, LP FGT Phase VIII 6.6 Bcf / 1.3 Bcf/d Expansion $2.4 Billion (100%) El Paso Pipeline 2011 800 MMcf/d Note: As of November 6, 2008; El Paso Pipeline Partners owns 25% of SNG & 40% of CIG 10
  • 11. Pipeline Construction Report Card Remains Excellent 2008 Projects WIC Kanda Lateral In-service Cheyenne Plains—Coral In-service SNG Cypress Phase II In-service WIC Medicine Bow In-service CIG High Plains Pipeline 4Q TGP Blue Water/800 Line Exp 4Q 4 operated pipelines completed—on-budget 11
  • 12. Construction Risk Management El Paso Capital ($ Billions) Steel Construction Elba Expansion $ 1.1 Fixed-Price EPC Contract Elba Express Fixed United-Priced Gulf LNG (50%) $ 0.5 Fixed-Price EPC Contract Ruby $ 3.0 Fixed Incentive-Based FGT Phase VIII (50%) $ 1.2 Fixed Unit-Priced TGP Line 300 $ 0.8 Fixed Negotiating Backlog has been significantly de-risked 12
  • 13. E&P 2008 Progress Completed 2007/2008 portfolio high grading Reduced unit LOE and G&A Expanded non-proved resources Cotton Valley horizontals Haynesville shale Niobrara shale Raton in-fill Altamont in-fill 13
  • 14. Significant Resource Inventory* Infill drilling (CBM, Altamont, Arklatex) Emerging shale gas plays Upside (Niobrara and Haynesville) Potential International exploration leads 2.8 Tcfe 6.1 Tcfe unrisked non-proved resources Unproved 2.0 Tcfe risked unconventional and low risk Inventory Heavily weighted to U.S. Onshore (86%) 2.8 Tcfe Proved 869 Bcfe Proved Undeveloped Reserves Reserves R/P of 9.6 *As of 12/31/2007 adjusted for 2008 domestic divestitures 14
  • 15. 2009 Program Overview Favor lower-risk, repeatable programs More Onshore, resource-based Less TGC and GOM Delivers production in line with 2008 Generates very predictable cash flow Preserves opportunity for future ramp up 15
  • 16. Significant Inventory of Lower-Risk Programs Altamont 100% Arlatex Black Warrior Raton 100% 100% 100% Texas Gulf Coast (non-exploration) 94% Note: 2008 success rates through September 30, 2008 16
  • 17. Continue to Develop Shale Opportunities Haynesville Niobrara CO Marion Ups Claiborne hur Webster Caddo Harrison Bossier NM Travis Lynch #4H Gregg Completed IP 8 MMcfe/d Bienville Rusk Panola Miller 10H #1 Red Desoto River Completed IP 4 MMcfe/d Gamble 24H Current prospective area Drilling Niobrara Shale El Paso operated wellsShe Natchitoches Test well locations Horizontal wells drilled by others lby Approximately 42,500 net acres 3 wells drilled and completed 2 horizontal and 1 vertical 2 wells completed Initial flow rates of 0.4–1.8 MMcfe/d 1 well drilling $2 MM–$3 MM completed well costs Significant resource potential > 300,000 prospective net acres 17
  • 18. Brazil to Become a Meaningful Contributor Pinaúna (100%) 15–20 MBOE/d peak production Slowed pace of development Brazil Copaiba Well (18%) Drilled and testing Rio de Janeiro Camarupim (24%) 35–50 MMcfe/d in 1Q 2009 Tot Well (35%) Drilling and evaluating 18
  • 19. Significant Value in 2009 Hedges Positions as of October 2, 2008 151 TBtu Ceiling Average cap $14.97/MMBtu 143 TBtu 168 TBtu 8 TBtu 2009 Gas $15.41 $9.10 $7.33 ceiling floor fixed price 176 TBtu Floor Balance at Average floor $9.02/MMBtu Market Price 3.4 MMBbls 2009 Oil $109.93 fixed price ~70% of domestic natural gas and ~60% domestic oil production hedged* 2009 hedge program valued at ~$500 MM at November 3, 2008 Note: See full Production-related Derivative Schedule in Appendix * Includes proportionate share of Four Star equity volumes 19
  • 20. Summary Will meet 2009 maturities Will execute pipeline backlog While preserving E&P opportunities Long-term growth potential in tact 20
  • 21. El Paso Corporation John Hopper Vice President & Treasurer Bank of America 2008 Credit Conference November 20, 2008
  • 23. Disclosure of Non-GAAP Financial Measures The SEC’s Regulation G applies to any public disclosure or release of material information that includes a non-GAAP financial measure. In the event of such a disclosure or release, Regulation G requires (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. The required presentations and reconciliations are attached. Additional detail regarding non-GAAP financial measures can be reviewed in El Paso’s full operating statistics, which will be posted at www.elpaso.com in the Investors section. El Paso uses the non-GAAP financial measure “earnings before interest expense and income taxes” or “EBIT” to assess the operating results and effectiveness of the company and its business segments. The company defines EBIT as net income (loss) adjusted for (i) items that do not impact its income (loss) from continuing operations, such as extraordinary items and discontinued operations; (ii) income taxes; and (iii) interest and debt expense. The company excludes interest and debt expense so that investors may evaluate the company’s operating results without regard to its financing methods or capital structure. EBITDA is defined as EBIT excluding depreciation, depletion and amortization. El Paso’s business operations consist of both consolidated businesses as well as investments in unconsolidated affiliates. As a result, the company believes that EBIT, which includes the results of both these consolidated and unconsolidated operations, is useful to its investors because it allows them to evaluate more effectively the performance of all of El Paso’s businesses and investments. El Paso believes that the non-GAAP financial measures described above are also useful to investors because these measurements are used by many companies in the industry as a measurement of operating and financial performance and are commonly employed by financial analysts and others to evaluate the operating and financial performance of the company and its business segments and to compare the operating and financial performance of the company and its business segments with the performance of other companies within the industry. These non-GAAP financial measures may not be comparable to similarly titled measurements used by other companies and should not be used as a substitute for net income, earnings per share or other GAAP operating measurements. 23
  • 24. Reserves Pro Forma Reconciliation Onshore Central Western TGC GOM Int’l Total Reserves (Bcfe)1 Ending reserves 1/1/08 1,328 715 550 269 247 3,109 Adjustments2 (58) (40) (93) (118) – (309) Pro forma ending reserves 1/1/08 1,270 675 457 151 247 2,800 1 Reserves data includes proportionate share of Four Star 2 Adjustments reflect elimination of divestiture properties and addition of Peoples for full-year 2007 24
  • 25. Production-Related Derivative Schedule 2008 2009 2010 2011–2012 Notional Avg. Hedge Notional Avg. Hedge Notional Avg. Hedge Notional Avg. Hedge Natural Gas Volume Price Volume Price Volume Price Volume Price (TBtu) ($/MMBtu) (TBtu) ($/MMBtu) (TBtu) ($/MMBtu) (TBtu) ($/MMBtu) Designated—EPEP Fixed price—Legacy 1.1 $ 3.49 4.6 $ 3.56 4.6 $3.70 6.8 $3.88 Fixed price 5.3 $ 8.37 Ceiling 27.5 $ 10.87 101.0 $ 14.58 Floor 27.5 $ 8.00 125.8 $ 8.93 Economic—EPEP Fixed price 1.8 $ 8.24 3.6 $ 12.06 Ceiling 6.5 $ 10.32 41.9 $ 17.40 Floor 6.5 $ 8.00 41.9 $ 9.61 Avg. ceiling 42.2 $ 10.16 151.1 $ 14.97 4.6 $3.70 6.8 $3.88 Avg. floor 42.2 $ 7.93 175.9 $ 9.02 4.6 $3.70 6.8 $3.88 2008 2009 Notional Avg. Hedge Notional Avg. Hedge Crude Oil Price Volume Volume Price ($/Bbl) (MMBbls) (MMBbls) ($/Bbl) Designated—EPEP Fixed price 0.43 $ 88.57 1.39 $110.00 Economic—EPEP Fixed price 0.20 $ 88.28 2.04 $109.87 Economic—EPM Ceiling 0.22 $ 56.10 Floor 0.22 $ 55.00 Avg. ceiling 0.85 $ 80.10 3.43 $109.93 Avg. floor 0.85 $ 79.81 3.43 $109.93 25 Note: Positions are as of October 2, 2008 (Contract months: Oct 2008–Forward)