EP EL Paso Corp. (Holding Co.)

El Paso Corporation (EP) plans to develop its oil and gas shale fields in the Eagle Ford all by itself. The company’s decision to drill on its own in the Shale came after an extensive review of proposals from potential partners.

The Eagle Ford in Texas is one of the best assets El Paso has in its kitty. The company said these assets are a key to boosting the company’s production and reserves going forward. The Eagle Ford shale oil and gas field cuts across south and east Texas and is located in the LaSalle and McMullen counties, south of San Antonio.

By drilling single-handed on its high-interest Eagle Ford shale position El Paso Corp. hopes to create better value for its shareholders. The company pointed out that the well results in LaSalle County, Texas, has surpassed expectations. The company continues to drive efficiencies in its drilling and completion processes as it did in the Haynesville shale program.

Houston, Texas-based El Paso Corp. produces oil and gas and also ships it for other companies through a pipeline system. The company owns North America's largest interstate natural gas pipeline system, one of North America's largest independent oil and natural gas producers and an emerging midstream business. The company competes primarily with Exxon Mobil Corporation (XOM) and Williams Companies Inc. (WMB).

El Paso Corp. is expected to report its first quarter 2011 earnings results on May 5, 2011. The Zacks Consensus EPS Estimates for first-quarter 2011, fiscal year 2011 and fiscal year 2012 are, respectively, 28 cents per share, $1.03 per share and $1.20 per share. The company expects earnings per share in 2011 to be in the range of 90 cents to $1.05.

El Paso Corporation currently retains a Zacks #3 Rank (short-term Hold rating). We also maintain a Neutral rating on the stock.

 
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