Who owns el paso corporation

El Paso's focus on oil production growth makes sense given how much more oil is getting on the market compared to natural gas, Hammond said. Most Popular. Why Facebook won't let you control your own news feed. A number of lawmakers think users should be able to disable automated ranking systems. A record 4. Kinder Morgan, Inc. The total purchase price, including the assumption of debt outstanding at El Paso Corporation and including the debt outstanding at El Paso Pipeline Partners, L.

The combined enterprise, including the associated master limited partnerships, Kinder Morgan Energy Partners, L. The natural gas pipeline systems of the two companies are very complementary, as they primarily serve different supply sources and markets in the United States. First Time Home Buyers. Purpose and Mission Boards and Agenda Directory.

The year-old Wise had been with El Paso since , working as an attorney and then serving in various management positions. Wise was credited with helping the company make a transition to transport services during the late s and with helping to make El Paso a low-cost industry leader. When El Paso regained its independence, its pipeline consisted of a 20, mile network connecting three oil producing regions in Texas, Oklahoma, and New Mexico to buyers primarily in California, Arizona, New Mexico, and Texas.

El Paso was in a relatively strong position in its industry going into the mids. It was the largest supplier of natural gas to the state of California and had successfully changed from merchant to transporter in compliance with new federal regulations. However, it was also facing obstacles.

Most notably, the California gas market was becoming glutted, dampening profits in El Paso's most important region. Nevertheless, investors were enthusiastic about El Paso's chances, as evidenced by a doubling of the company's stock price between and early El Paso was pinning its long-term hopes on the rapidly expanding Mexican market, to which it had unsurpassed access.

It was also engaged in an ambitious effort to vastly increase its access to the northern California natural gas market.

As part of its growth strategy, El Paso embarked on an impressive acquisition journey during the mid- to late s. Three of the company's largest acquisitions significantly added to its holdings. Wise commented on the purchase in a December Inside F. Shortly after the purchase, the company adopted the El Paso Energy corporate moniker. In order to clear regulatory hurdles, El Paso was forced to sell off its East Tennessee natural gas pipeline, 17 compressor stations, a liquefied natural gas facility, and Sonat's Sea Robin pipeline and its one-third interest in the Destin pipeline.

The joining of El Paso and Sonat created the largest natural gas transmission system in North America. Coastal had become an attractive target, mainly because of its natural gas reserves, and El Paso was eager to add it to its growing arsenal.

Over the past six years, El Paso had transformed itself into a leader in natural gas pipelines, gas processing, exploration and production, field services, and merchant energy, and the company planned to expand further into liquefied natural gas and telecommunications.

The company changed its name to El Paso Corporation in El Paso began to face significant challenges during The Enron Corporation bankruptcy and the ensuing loss of investor confidence in energy companies forced the company to clean up its balance sheets. At the same time, El Paso came under fire for its alleged involvement in California's energy crisis.

An August BusinessWeek article summed up the situation, reporting, "State and federal regulators are investigating charges that El Paso used its control of a key pipeline to sharply boost the price of natural gas flowing into the state.

El Paso says it certainly didn't manipulate the market and blames higher prices on California's unique energy problems. By , El Paso was struggling under a mountain debt. As such, the company began a major sell off of its non-core assets. Additional holdings were sold the following year, including part of its interest in GulfTerra Energy Partners, its refinery in Aruba, domestic power plants, various production properties, and chemical operations.

At the same time, the company became entangled in a proxy fight with displeased shareholders that had watched the company's stock fall by 90 percent in recent years. Wise was ousted during the turmoil and Doug Foshee was tapped to oversee El Paso's turnaround. During , Foshee worked to reposition El Paso.

According to the company, it planned to focus on pipeline operations in the United States and Mexico, production in the United States and Brazil, and marketing and trading. It also continued to clean up its accounting records.