Intermountain West ProductionIntermountain West Production-- -- Getting Gas to MarketGetting Gas to Market

Jim ClearyJim ClearyEl Paso Western PipelinesEl Paso Western Pipelines

IPAA Mid-Year MeetingIPAA Mid-Year Meeting

June 14, 2004June 14, 2004

2

Cautionary Statement Regarding Cautionary Statement Regarding Forward-looking StatementsForward-looking Statements

This presentation includes forward-looking statements and projections, This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this anticipated results or other expectations expressed in this presentation, including, without limitation, the ability to implement and presentation, including, without limitation, the ability to implement and achieve objectives in our long-range plan; general economic and achieve objectives in our long-range plan; general economic and weather conditions in geographic regions or markets served by the weather conditions in geographic regions or markets served by the company and its affiliates; competition; and other factors described in company and its affiliates; competition; and other factors described in the company’s (and its affiliates’) Securities and Exchange the company’s (and its affiliates’) Securities and Exchange Commission filings. While the company makes these statements and Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional, important factors that may must be made to those filings for additional, important factors that may affect actual results. The company assumes no obligation to publicly affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.as a result of new information, future events, or otherwise.

El Paso Western PipelinesEl Paso Western Pipelines

WICWICCIGCIGEPNGEPNGMojaveMojaveCheyenne PlainsCheyenne Plains

Big Horn

Wind River

Green River

San Juan

Denver-Julesburg

AnadarkoRaton

Uinta

Piceance

Powder River

Permian

3

4

2003 NPC Study – Rockies Supply2003 NPC Study – Rockies Supply

% of National% of NationalProductionProduction

% of Total% of TotalUndiscovered PotentialUndiscovered Potential

Lower 48Lower 48 Lower 48Lower 48

RockiesRockies RockiesRockies

5

Natural Gas ProductionNatural Gas Production

Source: Energy Information AdministrationSource: Energy Information Administration

0

1

2

3

4

5

6

7

1990 2000 2010 2020

West CoastWest CoastNortheastNortheast

SouthwestSouthwest

Gulf CoastGulf Coast

Intermountain WestIntermountain West

MidcontinentMidcontinent

Tri

llio

n C

ub

ic F

eet/

Yr.

Tri

llio

n C

ub

ic F

eet/

Yr.

ProjectedProjected

6

Bcf/dBcf/dBcf/dBcf/d

20022002 74.274.220132013 92.892.8

2.02.02.72.7

6.86.88.98.9

4.24.25.75.7

1.91.93.03.0

3.23.24.54.5

15.615.615.815.8

1.91.92.32.3

4.04.04.24.2

0.40.40.50.5

2.62.63.53.5

6.06.07.47.4

1.51.51.71.7

1.21.21.31.3

8.78.710.710.7

4.24.28.18.1MexicoMexico

5.15.16.26.2

WesternWestern CanadaCanada

EasternEastern CanadaCanada MaritimesMaritimes

0.20.20.30.3

3.43.44.44.4

Total*Total*

1.31.31.61.6

North American RegionalNorth American RegionalDemand Growth Demand Growth

Includes lease, plant and pipeline fuelIncludes lease, plant and pipeline fuel *Source: El Paso N.A. Macro Feb 2004*Source: El Paso N.A. Macro Feb 2004

7

Bcf/dBcf/dBcf/dBcf/dWestern Western CanadaCanada

U.S. LNGU.S. LNGImportsImports

17.517.518.718.7

0.50.51.61.6

RockiesRockies

5.35.39.59.5

0.60.611.011.0

San JuanSan Juan 3.93.93.23.2

SouthSouthCentralCentral

Mid-Mid-ContinentContinent

6.26.24.74.7

14.014.015.115.1

2002*2002* 75.175.120132013 93.293.2

Total North America*Total North America*

Eastern Eastern CanadaCanada

* Supply does not equal demand due to balancing / storage; estimates

MexicoMexico(incl LNG)(incl LNG)

4.14.18.68.6 Gulf ofGulf of

MexicoMexico

Major Supply ChangesMajor Supply Changes

15.115.114.314.3

Source: El Paso Pipelines N.A. Macro Feb. 2004

3.63.63.23.2

PermianPermian

8

0

1,000

2,000

3,000

4,000

5,000

6,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

-$0.30

$0.20

$0.70

$1.20

$1.70

$2.20

MMcf/d

Northern RockiesNorthern Rockies

Net Export Supply vs. CapacityNet Export Supply vs. Capacity

CIG to Mid-Continent BasisCIG to Mid-Continent Basis

CIG to Topock BasisCIG to Topock Basis

Pipeline Export CapacityPipeline Export Capacity

Net Supply for ExportNet Supply for Export

Capacity SurplusCapacity Surplus

CIG to Mid-Continent BasisCIG to Mid-Continent Basis

CIG to Topock BasisCIG to Topock Basis

Pipeline Export CapacityPipeline Export Capacity

Net Supply for ExportNet Supply for Export

Capacity SurplusCapacity Surplus

Denver

475

900

360

210

400

300

850

330 180

EastEastTrailblazerTrailblazer 850850

KMIKMI 400400

CIG*CIG* 330330

Southern StarSouthern Star 180180

WBIWBI 210210

TotalTotal 1,9701,970WestWestNWP NorthNWP North 475475

NWP SouthNWP South 360360

KernKern 900900

TransColoradoTransColorado 300300

TotalTotal 2,035 2,035

* Excludes capacity from Raton

2003 Northern Rockies Export Capacity2003 Northern Rockies Export CapacityApproximately 4.0 Bcf/dApproximately 4.0 Bcf/d

9

10

Rockies Export ExpansionsRockies Export Expansions

CapacityCapacity(MDthd)(MDthd) In-Service DateIn-Service Date

KernKern 906906 May 2003May 2003

NorthwestNorthwest 175175 November 2003November 2003

GrasslandsGrasslands 8080 December 2003December 2003

TransColoradoTransColorado 125125 August 2004August 2004

Cheyenne PlainsCheyenne Plains 560560 January 2005January 2005

Cheyenne Plains Phase IICheyenne Plains Phase II

TotalTotal

170170

2,0162,016

January 2006January 2006

11

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

Powder RiverDenverBig HornWind River

PiceanceUintaGreen RiverOverthrust

2,000MMcf/d

2003 to 2010

1990-2002: Data derived from IHS Energy database2003: Estimate2004-2010: El Paso forecast

MMcf/d

HighPrior 2003 ForecastLow

Northern Rockies Supply ForecastNorthern Rockies Supply Forecast

12

Las Vegas

Denver

Salt Lake City

Greensburg

Cheyenne PlainsCheyenne Plains

WIC Reversal / WIC Reversal / ExtensionExtension

On-Going El Paso Expansion EffortsOn-Going El Paso Expansion Efforts

Medicine BowMedicine BowExpansionExpansion

PiceancePiceance

Raton BasinRaton Basin

Line 1903 ProjectLine 1903 Project

WICWICCIGCIGKern RiverKern RiverNNGNNGNGPLNGPL

ANRANRPEPLPEPLSSCSSCEPNGEPNGExpansionsExpansions

12

13

Cheyenne Plains 36-Inch PipelineCheyenne Plains 36-Inch Pipeline

Phase IPhase I Phase IIPhase II TotalTotal

Compression (HP)Compression (HP) 20,60020,600 10,30010,300 30,90030,900

Capacity (MDthd)Capacity (MDthd) 560560 170170 730730

FERC FilingFERC Filing May 20, 2003May 20, 2003 May 25, 2004May 25, 2004

In-Service DateIn-Service Date January 2005January 2005 January 2006January 2006

Ultimate CapacityUltimate Capacity 1,700 MDthd1,700 MDthd

Receipt PointsReceipt Points Delivery PointsDelivery Points

CIG and WICCIG and WIC ANR, PEPL, NGPL, NNG, ANR, PEPL, NGPL, NNG, KGS, KMI, SSKGS, KMI, SS

14

Thoughts for the FutureThoughts for the Future

Gas is ValuableGas is Valuable· ·

Capacity is CheapCapacity is Cheap

· ·

Connectivity is Connectivity is PricelessPriceless