2. Cautionary Statement Regarding
Forward-looking Statements
This presentation includes forward-looking statements and projections, made in
reliance on the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. 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 presentation, including, without limitation, our ability
to successfully contract, build and operate the pipeline projects described in this
presentation; changes in supply of natural gas; general economic and weather
conditions in geographic regions or markets served by El Paso Corporation and its
affiliates, or where operations of the company and its affiliates are located; the
uncertainties associated with governmental regulation; 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.
2
3. Agenda
Pipeline Group Overview
►
Regional Supply and Market Trends
►
Growth Outlook
►
El Paso Western Pipelines Update
►
3
4. El Paso’s Natural Gas Pipelines
► 26% total U.S. interstate
pipeline mileage
Great Lakes Gas
► 36 Bcf/d capacity (25% of
Transmission (50%)
total U.S.)
Wyoming
Interstate
► Best market connectivity
Colorado
► Best supply access
Cheyenne
Interstate Gas
Plains Pipeline
► Leading pipeline integrity
program
Tennessee
Mojave
Gas Pipeline
Pipeline ANR
Pipeline
Southern
Natural Gas
Elba Island LNG
El Paso
Natural Gas
Cypress
Pipeline
Mexico
Ventures
Florida Gas
Transmission (50%)
4
5. El Paso Western Pipelines
Wyoming Interstate
600 miles; 2 Bcf/d
Colorado
Interstate Gas Cheyenne Plains
4,000 miles; 3 Bcf/d Pipeline
380 miles; 0.8 Bcf/d
El Paso
Natural Gas
10,600 miles; 6 Bcf/d
Mojave
Pipeline
400 miles;
0.4 Bcf/d
5
7. Arizona Gas Demand and
Population Trends
0.83%
900 7,000
2.94%
Year to 0.12%
0.49%
2.66%
Year Gas 2.95%
11.44%
Growth
800 10.46% 6,000
700
Population (1,000’s)
5.43% 5,000
18.64%
600
MMcf/d
4,000
Compound Annual
500 Growth Rates
Population:
400 2000–2004: 2.69% 3,000
2005–2010: 2.49%
300 2000–2010: 2.54%
2,000
200 Total Gas Demand:
2000–2004: 11.39%
1,000
100 2005–2010: 1.40%
2000–2010: 5.45%
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Residential/Commercial/Industrial Electric Power Arizona Population
7
8. California Gas Demand and
Population Trends
8,000 50,000
Year to
Year Gas
Growth 1.87%
2.46%
7,000 4.64% (0.09)% 2.81%
(1.23)%
6.99% (1.99)% 45,000
(7.48)%
(2.34)%
6,000
Population (1,000’s)
40,000
MMcf/d
5,000
4,000 35,000
Compound Annual
Growth Rates
Population:
3,000 2000–2004: 1.52%
30,000
2005–2010: 1.10%
2000–2010: 1.17%
2,000
Total Gas Demand:
25,000
2000–2004: (1.15)%
1,000
2005–2010: 2.33 %
2000–2010: 0.49 %
0 20,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Residential/Commercial/Industrial Electric Power California Population
8
9. California Gas Demand
California Natural California Gas Demand by
Gas Demand 2004 Core vs. Noncore
Electric
Residential
Generation
23% Noncore Core
47%
68% 32%
Industrial
20%
Commercial
10%
Source: California Energy Commission Source: California Gas Report - 2005 Supplement
9
10. WECC Regional Breakout of
Installed Gas Fired MW Capacity
30,000
25,000 Since 1999:
Incremental Gas Demand
Added 6,130 MDth/d of
1,680 MDth/d
potential new gas demand in
Installed MW Capacity
20,000 980 Western Pipeline markets
MDth/d
1,700
15,000
MDth/d
10,000
760
MDth/d 750 260
MDth/d
5,000 MDth/d
0
Southern Northern Arizona Pacific Southern Nevada Mountain Colorado / SE New Mexico / El
California California Northwest Northwest Wyoming Paso Area
Pre-1999 Capacity Capacity Additions since 1999
10
11. High Connectivity with
Supply and Markets
Supply Markets
345 Arizona UT
~200 Supply Receipt Points Delivery Points CO
221 Southwest Gas
43 Citizens (UNS)
NV
12 APS
8 SRP
61 Other
NM
CA
ME
X.
11
12. Western Pipeline Growth Projects
Completed or under construction
Cheyenne Plains
WIC Kanda Lateral Signed PA’s
Future Projects
Phase I & II
Up to $137 MM
$385 MM
January 2008
December 2005
Up to 333 MMcf/d
755 MMcf/d
WIC Piceance Pipeline
$132 MM
CPG Yuma Lateral
March 2006
$22 MM
333 MMcf/d
October 2006
49 MMcf/d
Front Range
WIC/CP Opal to Cheyenne
Market Delivery
EPNG Arizona
or Greensburg
Infrastructure
Storage
$39–$67 MM
$148 MM
$105 MM
January 2008
2008/2009
2009/10
125 Mdth/d
350 MMcf/d
CIG Raton Basin
Expansions
$91 MM
EPNG Line 1903
2005–2008
$74 MM
170 MMcf/d
December 2005
502 MMcf/d
EPNG Sonora Lateral
$91 MM
2009/10
800 MMcf/d
12
13. Continental Connector Project
Secured significant
►
commitment from
Chesapeake Energy
Binding open season runs
►
through May 19
Began NEPA pre-filing
►
process
Expected design: 1 Bcf/d
►
with 1Q 2008 in-service
13
14. Western Pipelines Update
Favorable orders on EPNG restructuring and rate caps
►
– Largely approved proposed new services
– Clarified limits on applicability of 1996 rate settlement
Customer settlement negotiations ongoing in
►
EPNG rate case
Extended effectiveness of new CIG rate case until
►
January 2007
– Settlement negotiations ongoing
14
15. El Paso Western Pipelines:
Conclusions
Excellent supply access
►
Serving growing markets
►
High degree of connectivity
►
Well positioned for growth
►
Making good progress on rate cases and
►
service restructuring
15
16. James J. Cleary
President, El Paso Western Pipelines
AGA Financial Forum
Scottsdale, Arizona
May 8, 2006
