El Paso has announced a capital plan for 2009 that is designed to provide the company with adequate liquidity to meet its debt maturities and other on-going obligations while enabling El Paso to fulfill its pipeline growth program and preserve its inventory of exploration and production opportunities.
"El Paso is well-positioned to meet the current credit market challenges while continuing to execute on the core elements of our business plan," said Doug Foshee, president and chief executive officer of El Paso Corporation. "We have strong cash flow from our Pipeline Group that is essentially unaffected by changes in natural gas prices. At our Exploration and Production business, we have excellent 2009 hedge positions with a $9 per MMBtu floor price on approximately 70 percent of our expected 2009 domestic natural gas production and approximately 60 percent of expected 2009 domestic oil production hedged at $110 per barrel. In addition, we have substantial flexibility in our E&P program, which allows us to reduce near-term capital spending and retain sufficient liquidity while not impacting long-term growth potential."
As of September 30, 2008, El Paso's liquidity was $1.9 billion, which was composed of $1.2 billion of cash and approximately $0.7 billion available from committed bank facilities.
Capital plan highlights include:
El Paso will discuss its spending plans during its November 6, 2008 third quarter earnings conference call.
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