El Paso Advances Spin-off, Names New Co. - Analyst Blog
August 15 2011 - 7:00AM
Zacks
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.
DCP MIDSTREAM (DPM): Free Stock Analysis Report
EL PASO CORP (EP): Free Stock Analysis Report
EL PASO PIPELIN (EPB): Free Stock Analysis Report
WILLIAMS COS (WMB): Free Stock Analysis Report
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