Outlook

Our national footprint means we are able to capture significant infrastructure growth opportunities as they occur; in 2006, we will spend about $450 million on growth projects. We intend to grow our business through organic and greenfield expansion opportunities as well as through strategic asset acquisitions from third parties, El Paso or both.

1. El Paso has restructured its ownership of Wyoming Interstate Company (WIC), Colorado Interstate Gas (CIG) and Southern Natural Gas (SNG), causing CIG and SNG to convert to general partnerships, causing CIG to transfer to El Paso its ownership of WIC and Colorado Water Supply Company and causing SNG to transfer to El Paso its equity investment in Citrus Corp. and its wholly-owned subsidiaries Southern LNG Inc. and Elba Express Company, LLC and causing CIG and SNG to adjust certain historical notes receivable under the cash management program with El Paso for the effects of this restructuring.
2. On November 16, 2007, twenty-five million common units were issued to the public in the initial public offering, representing a 32.2 percent limited partner interest in El Paso Pipeline Partners.
3. During the five years ended December 31, 2006, WIC added approximately 470 BBtu/d of additional mainline system or lateral transportation capacity at a cost of approximately $145 million. In order to capture expanding natural gas supplies, WIC has two additional major expansion projects in progress on the WIC system with a capital budget of $185 million, of which approximately $51 million has been spent as of June 30, 2007. Long term transportation contracts with shippers on both projects will allow full recovery of the cost of service of these projects (including a return on WIC’s investment), and these projects are expected to be completed and in-service on or before July 2008.
4. During the five years ended December 31, 2006, CIG added approximately 247 BBtu/d of additional system or lateral transportation capacity at a cost of approximately $94 million. In order to capture growing natural gas supplies, CIG has three expansion projects in progress, including two for WYCO, a 50/50 joint venture with Xcel Energy, with a total capital budget of approximately $329 million (with approximately $171 million net to CIG) through 2008, of which approximately $14 million has been spent as of June 30, 2007.
5. SNG has a total capital budget of approximately $578 million in organic growth projects between 2008 and 2012. During the five years ended December 31, 2006, SNG added approximately 0.8 Bcf of additional system transportation capacity at a cost of approximately $426 million.

*Cautionary Statement Regarding Forward-looking Statements