El Paso Corporation (NYSE: EP) names its spinoff exploration and production company EP Energy (NASDAQ: EPE). The newly formed entity will debute before the end of 2011, so don’t expect any changes in terms of royalty checks until 2012.
The new company will have more freedom to grow its oil and gas production without competing for capital with El Paso Corporation’s planned pipeline projects.
El Paso also announced that the new company will be named EP Energy Corporation, and it will be listed on the NASDAQ stock exchange under the ticker symbol EPE.
“We’re excited about the creation of two outstanding publicly traded companies through the spinoff of our E&P business,” said Doug Foshee, chairman, president, and chief executive officer of El Paso Corporation. “We are also excited about the new name for our E&P company — EP Energy. The new name leverages the equity we have built in the El Paso brand, and it speaks directly to what our E&P business does so well: finding and producing oil and natural gas.”
Brent Smolik, who will become president and chief executive officer of EP Energy, said, “While our name will change, many things will not, including the fundamental pillars of our E&P strategy. We have more than 10 years of drilling inventory that we expect will deliver significant growth in oil and condensate revenues. We will continue to focus on maintaining a significant drilling inventory of repeatable programs, being a leader in safe and responsible energy development, and driving high-end performance across our operations.”
Read the full press release at elpaso.com