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August 15, 2011
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El Paso Corporation (EP) said it continues to smoothly move ahead with its plans to split into two publicly traded companies, spinning off its E&P business before year-end 2011. The company notified that it has taken some important steps related to the spin-off, including filing its initial Form 10 with the U.S. Securities and Exchange Commission.
Along with the filing, El Paso also said the new company will be named EP Energy Corporation and will be listed on the NASDAQ stock exchange under the ticker symbol “EPE”. The company’s new name leverages the equity the company has built in the El Paso brand, and it signifies directly what its E&P business does so well - finding and producing oil and natural gas.
Despite the company’s name changes, El Paso’s E&P wing is confident of retaining the fundamental pillars of its E&P strategy. The company will continue to focus on maintaining a significant drilling inventory of repeatable programs and driving high-end performance across its operations.
The Exploration and Production business of El Paso, slated to go solo, currently has more than 10 years of low-risk, repeatable drilling inventory, which will boost and ensure the growth of the new company in the forthcoming years. El Paso's current holdings in Eagle Ford and Wolfcamp shales and the Altamont field will also guarantee the viability of the newly emerged E&P business.
El Paso’s other businesses, comprising El Paso Pipeline Group, Midstream Group and its general and limited partner interests in El Paso Pipeline Partners L.P. (EPB), will retain the name El Paso Corporation with the ticker symbol “EP”. El Paso Corporation, following the separation, will become one of the major North American pipeline companies well connected in the major supply and market regions.
El Paso Corporation currently retains a Zacks #3 Rank (short-term Hold rating). The company competes with DCP Midstream Partners L.P. (DPM) and Williams Companies Inc. (WMB).
Based in Houston, Texas, El Paso Corporation involves itself in natural gas transmission and in the exploration and production sectors of the energy industry. The company primarily operates in United States and has some exposure in Brazil and Egypt.
Read the full analyst report on "EP"
Read the full analyst report on "WMB"
Read the full analyst report on "EPB"
Read the full analyst report on "DPM"
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