Highlights

• El Paso Exploration & Production is focused on the exploration for and the acquisition, development, and production of natural gas, oil and natural gas liquids in the United States, Brazil, and Egypt.
• We held an estimated 2.9 Tcfe of proved natural gas and oil reserves, not including our equity share in the proved reserves of an unconsolidated affiliate of 0.2 Tcfe as of December 31, 2007.
• Our focus is on growing our reserve base through disciplined capital allocation and portfolio management, cost control, and marketing our natural gas and oil production at optimal prices while managing associated price risks.

*Cautionary Statement Regarding Forward-looking Statements