53a meaningful company doing meaningful work delivering meaningful results

Exploration &Production Company

54

Todays Agenda

Opening Thoughts

E&P Overview

2006 Comments

Business Priorities

Division Reviews

2007 Plan Summary

55

Goal To Be Top E&P Performer

Solid foundation of people and assets in place

Ability to replace reserves from identified inventory

Organization executing at higher level of activity

Build credibility on performance

Provide visibility on future growth

Improve capital and operating efficiency

56

El Paso E&P: Top 10 IndependentTotal Company

Total year production of 798 MMcfe/d

Year-end reserves of 2,637 Bcfe*

R/P: 9.1

*Includes our 43.1% share of Four Star; all data 2006 unless noted

Egypt

Texas Gulf Coast

Total year production of187 MMcfe/d

Year-end reserves of406 Bcfe

R/P: 6.0

Onshore*

Total year production of 413 MMcfe/d

Year-end reserves of 1,711 Bcfe

R/P: 11.3

Brazil

Total year productionof 24 MMcfe/d

Year-end reserves of 248 Bcfe

R/P: 28.7

GOM/SLA

Total year production of174 MMcfe/d

Year-end reserves of272 Bcfe

R/P: 4.3

Egypt

2 exploration blocks

NileDelta

Sinai

EgyptGulf

ofSuez

Brazil

Rio de Janeiro

57

2006 Production Mix798 MMcfe/d

International24 MMcfe/d

3%

TGC187 MMcfe/d

23%

GOM174 MMcfe/d

22%

Onshore413 MMcfe/d

52%

2007 range: 800860 MMcfe/d500

600

700

800

900

2005 2006

MM

cfe/

d

El Paso Production Trend

Note: Includes our 43.1% share of Four Star

58

2006 YE Proved Reserves2.6 Tcfe

Onshore1,711 Bcfe

65%

GOM272 Bcfe

10%

TGC406 Bcfe

15%

Int'l248 Bcfe

10%PUD27%

PDP62%PDNP

11%

Note: Includes our 43.1% share of Four Star; all data 2006 unless noted

59*Includes our 43.1% share of Four Star; see appendix for further information

Reserve Reconciliation*

Beginning balance 12/31/2005

Production

Extensions and discoveries

Sale of reserves in place

Purchases of reserves in place

Performance Revisions

Reserves before Price Revision

Price Revision

Ending balance 12/31/2006

2,668

(291)

299

(20)

2

40

2,698

(61)

2,637

Equivalent(MMcfe)

60

2006 E&P Capital by Division$1.2 Billion

2007 capital: $1.7 billion

GOM$310 MM

26%

TGC$217 MM

18%

Int'l$83 MM

6%

Onshore$500 MM

42%

Admin. & Other$91 MM

8%

61

2006 YE Project Inventory

Unrisked Wells

Gross well count

Net Risked Resource

Resource potential (Bcfe)

Technically mature

Technically immature

2,389

625

500

318

310

180

159

180

650

141

660

170

3,007

1,775*

1,500

Onshore TGCGOM/SLA Intl Total

More than 5 years of project inventory

*Includes 724 Bcfe of PUD reserves including 35 Bcfe of Four StarNote: See cautionary statement on non-SEC proved reserves

62

2006 Accomplishments

4%* organic production growth

117%* reserve replacement excludingprice revisions

PVR > 1 at $5.50/$37.00; 1.3 at 12/31/06 strip

Gross well count up by ~30%

High drilling success rates on major programs

*Includes our 43.1% share of Four Star; see appendix for further information

63

2006 Accomplishments

Integrated East Texas and Rockies acquisitions

Announced significant acquisition for Texas Gulf Coast

New country entry in Egypt

Permit approval on Pinana (Brazil) exploration wells

Continued efforts on process improvements

Exited with 5 years of drilling inventory

64

2006 Challenges

Volume and reserve performance impacted by:

Extended GOM hurricane recovery operations

Delayed cycle-times from services shortages

Service cost pressures

Early phase International spending impact

Industry-wide staffing shortages

65

Priorities for Profitable Growth

Get the right assets, get the assets right

Focus on fundamentals

Drive Performance Delivery Model concepts

66

Balanced Portfolio

Region RiskGrowth

Potential Cash Flow

Onshore

TGC

GOM/SLA

Low

Low/Med

Med/High

Med/High

Moderate

Moderate

Low Flat

High

Generator

Neutral

Generator

UserGOM Int'l

GOM Ons. TGC Int'l

Onshore TGC

(Pc < 40%)High

Med

(Pc > 80%)Low

Ris

k

Intl

67

Attention to Fundamentals

Strive to be full-cycle, low-cost

Benchmark to assess relative performance

Attract and retain excellent people

68

E&P Performance Delivery Model = Success

69

It All Starts With Inventory

All employees doing impact work

Robust database of future ideas

Characterized by consistent criteria

Value

Capital efficiency

Size and impact

Generated or re-loaded from:

Base production optimization

Resource studies

Exploration activities

Acquisitions

License Ready

Drillable

Concepts

Leads

Prospects

Recommended

Rig Ready

Resource Potential Geologic risked Mean

Tec

hn

ical

ly M

atu

reT

ech

nic

ally

Imm

atu

re

Mat

uri

ty a

nd

Exe

cuti

on

Cer

tain

ty

Low

High

70

Striving for Excellence

Learning organization

Growing competencies

Project management

Operations excellence

Improved safety

Average Rig Activity

2005 2006

WorkoversRecompletionsDrilling & completion

24

115

40

31

16

9

56

71

Onshore

72

Lower-48 Unconventional Resources

*Includes our 43.1% share of Four Star except net acres; all data 2006 unless noted

Rockies

Production: 55 MMcfe/dReserves: 246 BcfeNet acres: 364,000

Raton Basin

Production: 76 MMcfe/dReserves: 343 BcfeNet acres: 605,000

Arklatex

Production: 122 MMcfe/dReserves: 448 BcfeNet acres: 104,000

Mid-Continent

Production: 28 MMcfe/dReserves: 110 BcfeNet acres: 319,000

Black Warrior Basin

Production: 64 MMcfe/dReserves: 342 BcfeNet acres: 172,000

Total Onshore*

Production: 413 MMcfe/dReserves: 1,711 BcfeNet acres: 1,692,000Base decline: 20%R/P: 11.3

73

Onshore Characterization

High-quality, concentrated asset base

Material core positions

Extensive project inventory

Strong positions in resource plays with running room

Geared for $500 MM$550 MM annual capital spend

Targeting repeatable, low-risk programs

Predictable, mid-single digit production growth

74

Onshore Organic Production Growth

4Q 2005 1Q 2006 2Q 2006 3Q 2006 4Q 2006

Base Capital Uplift

405 405 411 415420

Average MMcfe/d

Note: Includes our 43.1% share of Four Star

75

2006 YE Onshore Project Inventory

Rockies

Black Warrior

Arklatex

Mid-Continent

Raton

Total

237

672

615

507

358

2,389

195

160

440

115

215

1,125

PlaysUnrisked

Wells

Net RiskedResources

(Bcfe)

45 years of inventory

Note: See cautionary statement on non-SEC proved reserves

76

Onshore Competitive Strengths

Resource play technical expertise

Proven ability to execute large programs

Existing inventory of repeatable opportunities

Concentrated positions with high working interest

Ability to apply technology for improved efficiency

77

Raton BasinCoal Bed Methane

Net acres: 605,000 2007 capital: $115 MM 2007 gross wells: 178 Average gross well statistics:

WI: 100% Capex: $0.5 MM$0.7 MM Reserves: 0.3 Bcfe0.9 Bcfe Rate: 100 Mcf/d175 Mcf/d

NM

CO

Vermejo Park Ranch

EPEP minerals

78

Net acres: 172,000 2007 capital: $52 MM 2007 gross wells: 145 Average gross well statistics:

WI: 74% Capex: $0.4 MM$0.5 MM Reserves: 0.2 Bcfe0.6 Bcfe Rate: 100 Mcf/d300 Mcf/d

Black Warrior BasinCoalbed Methane

Tuscaloosa

Jefferson

AL

Blue Creek West

Short Creek

Brookwood

EPEP lease

White Oak Creek

79

Illinois BasinNew Albany Shale

Net acres: 118,000 Average gross well stats:

WI: 47% Capex: $1 MM Gross production > 2 MMcf/d

from 14 wells 2007 Focus

Expand core producing area Additional new area tests Productivity enhancement

Pike

IN

DuboisEPEP lease

Martin

Knox

Daviess

80

Gulf of Mexico (GOM)/South Louisiana (SLA)

81

GOM/SLA Position

TX LAMS AL

Key Statistics

Production: 174 MMcfe/dReserves: 272 BcfeNet acres SLA: 34,000Net acres GOM: 688,000Total net acres: 722,000Decline rate: 40%50%R/P: 4.3