Outlook

In 2010, we expect to produce 720 to 760 million cubic feet equivalent of natural gas and grow our proved reserves by 5 to 10 percent. To achieve these goals, we plan capital expenditures of $1.1 billion in 2010. We’ll focus our capital on the highest return areas of our inventory including key shale programs in the Haynesville and Eagle Ford, our oil program in the Altamont basin, and our Black Warrior Basin coalbed methane operations. Internationally, our exploration focus will be on the ES-5 block in Brazil and the South Alamein block in Egypt.

As El Paso drives toward becoming the top execution-focused company in energy, El Paso Exploration & Production plans to continue to deliver on its long-term strategy. Key drivers for that strategy include:

• A restructured organization that has improved alignment and accelerated progress;
• Improved cost and program management;
• Substantially improved reserve replacement costs and replacement rate; and,
• A growing inventory of prospects in key resource plays.

*Cautionary Statement Regarding Forward-looking Statements