El Paso projected liquidity needs met ahead of schedule, no plans to raise more capital in 2009

By Angela McDaniels

Tacoma, Wash., March 2 - El Paso Corp. believes its $3.3 billion of available liquidity will carry it into 2010, according to the company's 10-K report for 2008 filed with the Securities and Exchange Commission Monday.

In November, the company announced that it would need to raise $500 million to $800 million of capital in the second half of 2009 in order to meet its projected liquidity needs, including 2009 capital program and debt maturities in May.

El Paso said that since that time, it has successfully generated $1.9 billion of additional liquidity, primarily through several debt offerings, new credit facilities and non-core asset sales.

Accordingly, the company does not foresee any need to further access the capital markets in 2009, although it will continue to be "opportunistic in building liquidity" to meet its long-term capital needs.

Capital-raising

El Paso issued $500 million of 12% senior unsecured notes due 2013 in December and $500 million of 8¼% senior unsecured notes due 2016 in February, and subsidiary Tennessee Gas Pipeline Co. issued $250 million of 8% senior unsecured notes due 2016 in January.

El Paso also obtained a 364-day $300 million secured revolving credit facility, entered into an additional $100 million letter-of-credit facility and issued $135 million of debt through the subsidiary that owns its Elba Island liquefied natural gas facility, according to the 10-K.

Since the beginning of the year, the company has sold or is evaluating the sale of about $0.4 billion of non-core assets - primarily exploration and production properties and international power assets - and has completed $0.2 billion of the sales.

El Paso is a Houston-based natural gas transmission, exploration and production company.

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