##### Table of Contents


















Form 10-Q




[X]


QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended June 30, 2005


OR


[  ]


TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period
from           to


Commission File Number 333-106586





El Paso Production Holding Company




|                                                                                                      |  |                                                   
|----------------------------------------------------------------------------------------------------- |  | --------------------------------------------------
|Delaware(State or Other Jurisdiction
    of Incorporation or Organization)                            |  | 76-0659544(I.R.S. Employer
    Identification No.)
|                                                                                                     
|El Paso Building
    1001 Louisiana Street
    Houston, Texas(Address of Principal Executive Offices) |  | 77002(Zip Code)                                   

(713) 420-2600


þ o


o þ






EL PASO PRODUCTION HOLDING COMPANY MEETS THE CONDITIONS
OF GENERAL INSTRUCTION H(1)(a) AND (b) TO FORM 10-Q AND IS
THEREFORE FILING THIS REPORT WITH A REDUCED DISCLOSURE FORMAT AS
PERMITTED BY SUCH INSTRUCTION.










---










EL PASO PRODUCTION HOLDING COMPANY


TABLE OF CONTENTS


|                                                                     |  |                                                                                                                                    |  |      |    | 
|-------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                     |  | Caption                                                                                                                            |  | Page
|                                                                     |  |                                                                                                                                    |  |     
|                                                                     |  | PART I  Financial Information                                                                                                     |  |      |    | 
|Item 1.                                                              |  | Financial Statements                                                                                                               |  |      | 1  | 
|Item 2.                                                              |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                                          |  |      | 9  | 
|                                                                     |  | Cautionary Statements for Purposes of the
    Safe Harbor Provisions of the Private Securities
    Litigation Reform Act of 1995 |  |      | 15 | 
|Item 3.                                                              |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                                     |  |      | *  | 
|Item 4.                                                              |  | Controls and Procedures                                                                                                            |  |      | 16 | 
|                                                                     |  | PART II  Other Information                                                                                                        |  |      |    | 
|Item 1.                                                              |  | Legal Proceedings                                                                                                                  |  |      | 17 | 
|Item 2.                                                              |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                                                                    |  |      | *  | 
|Item 3.                                                              |  | Defaults Upon Senior Securities                                                                                                    |  |      | *  | 
|Item 4.                                                              |  | Submission of Matters to a Vote of Security
    Holders                                                                            |  |      | *  | 
|Item 5.                                                              |  | Other Information                                                                                                                  |  |      | 17 | 
|Item 6.                                                              |  | Exhibits                                                                                                                           |  |      | 17 | 
|                                                                     |  | Signatures                                                                                                                         |  |      | 18 | 
|Certification of Principal Executive Officer pursuant to Section 302
|Certification of Chief Financial Officer pursuant to Section 302    
|Certification of Principal Executive Officer pursuant to Section 906
|Certification of Chief Financial Officer pursuant to Section 906    








|  |                                                                                                                                                                                               
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | We have not included a response to this item in this document
    since no response is required pursuant to the reduced disclosure
    format permitted by General Instruction H to Form 10-Q.



|      |  |                                                 
|----- |  | ------------------------------------------------
|/d    |  | = per day                                       
|Bbl   |  | = barrels                                       
|Bcfe  |  | = billion cubic feet of natural gas equivalents 
|MBbls |  | = thousand barrels                              
|Mcf   |  | = thousand cubic feet                           
|Mcfe  |  | = thousand cubic feet of natural gas equivalents
|MMBtu |  | = million British thermal units                 
|MMcf  |  | = million cubic feet                            
|MMcfe |  | = million cubic feet of natural gas equivalents 
|NGL   |  | = natural gas liquids                           





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PART I  FINANCIAL INFORMATION





Item 1. Financial Statements


EL PASO PRODUCTION HOLDING COMPANY


CONDENSED CONSOLIDATED STATEMENTS OF INCOME


(In millions)


(Unaudited)


|                           |                                          |               |     |            |          |   |     |      |  |   |      |     |  |   |     |     | 
|-------------------------- | ---------------------------------------- | ------------- | --- | ---------- | -------- | - | --- | ---- |  | - | ---- | --- |  | - | --- | --- | 
|                           |                                          |               |     | Six Months |         
|                           |                                          | Quarter Ended |     |            | Ended    |  
|                           |                                          | June 30,      |     |            | June 30, |  
|                           |                                          |               |     |            |          |  
|                           |                                          | 2005          |     |            | 2004     |   |     | 2005 |  |   | 2004 |    
|                           |                                          |               |     |            |          |   |     |      |  |   |      |    
|Operating revenues         |                                          | $             | 196 |            |          | $ | 193 |      |  | $ | 356  |     |  | $ | 412 |    
|                           |                                          |               |     |            |          |   |     |      |  |   |      |    
|Operating expenses         |                                          |               |     |            |          |   |     |      |  |   |      |     |  |   |     |    
|                           | Cost of sales                            |               |     | 9          |          |   |     | 12   |  |   |      | 18  |  |   |     | 21  | 
|                           | Operation and maintenance                |               |     | 53         |          |   |     | 38   |  |   |      | 95  |  |   |     | 85  | 
|                           | Depreciation, depletion and amortization |               |     | 92         |          |   |     | 79   |  |   |      | 174 |  |   |     | 172 | 
|                           | Taxes, other than income taxes           |               |     | 10         |          |   |     | 4    |  |   |      | 19  |  |   |     | 10  | 
|                           |                                          |               |     |            |          |   |     |      |  |   |      |    
|                           |                                          |               | 164 |            |          |   | 133 |      |  |   | 306  |     |  |   | 288 |    
|                           |                                          |               |     |            |          |   |     |      |  |   |      |    
|Operating income           |                                          |               | 32  |            |          |   | 60  |      |  |   | 50   |     |  |   | 124 |    
|Other income, net          |                                          |               |    |            |          |   |    |      |  |   | 1    |     |  |   |    |    
|Affiliated interest income |                                          |               | 4   |            |          |   | 4   |      |  |   | 7    |     |  |   | 9   |    
|Interest expense           |                                          |               | (19 | )          |          |   | (21 | )    |  |   | (38  | )   |  |   | (39 | )  
|                           |                                          |               |     |            |          |   |     |      |  |   |      |    
|Income before income taxes |                                          |               | 17  |            |          |   | 43  |      |  |   | 20   |     |  |   | 94  |    
|Income taxes               |                                          |               | 6   |            |          |   | 16  |      |  |   | 8    |     |  |   | 34  |    
|                           |                                          |               |     |            |          |   |     |      |  |   |      |    
|Net income                 |                                          | $             | 11  |            |          | $ | 27  |      |  | $ | 12   |     |  | $ | 60  |    
|                           |                                          |               |     |            |          |   |     |      |  |   |      |    



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EL PASO PRODUCTION HOLDING COMPANY


CONDENSED CONSOLIDATED BALANCE SHEETS


(In millions, except share amounts)


(Unaudited)


|                                       |                                                                                   |                                              |                                            |       |              |       |       |       |       |       | 
|-------------------------------------- | --------------------------------------------------------------------------------- | -------------------------------------------- | ------------------------------------------ | ----- | ------------ | ----- | ----- | ----- | ----- | ----- | 
|                                       |                                                                                   | June 30,                                     |                                            |       | December 31, |      
|                                       |                                                                                   | 2005                                         |                                            |       | 2004         |      
|                                       |                                                                                   |                                              |                                            |       |              |      
|ASSETS                                
|Current assets                         |                                                                                   |                                              |                                            |       |              |       |       |      
|                                       | Cash and cash equivalents                                                         |                                              | $                                          | 92    |              |       | $     | 124   |      
|                                       | Accounts receivable, net of allowance of $6 in 2005 and $5 in
    2004            |                                              |                                            | 225   |              |       |       | 142   |      
|                                       | Note receivable from affiliate                                                    |                                              |                                            | 262   |              |       |       | 145   |      
|                                       | Deferred income taxes                                                             |                                              |                                            | 125   |              |       |       | 86    |      
|                                       | Other                                                                             |                                              |                                            | 45    |              |       |       | 25    |      
|                                       |                                                                                   |                                              |                                            |       |              |      
|                                       |                                                                                   |                                              | Total current assets                       |       |              | 749   |       |       |       | 522   | 
|                                       |                                                                                   |                                              |                                            |       |              |      
|Property, plant and equipment, at cost |                                                                                   |                                              |                                            |       |              |       |       |      
|                                       | Natural gas and oil properties                                                    |                                              |                                            |       |              |       |       |       |      
|                                       |                                                                                   | Proved properties-full cost method           |                                            |       | 7,814        |       |       |       | 7,313 |      
|                                       |                                                                                   | Unevaluated costs excluded from amortization |                                            |       | 299          |       |       |       | 253   |      
|                                       | Other                                                                             |                                              |                                            | 95    |              |       |       | 86    |      
|                                       |                                                                                   |                                              |                                            |       |              |      
|                                       |                                                                                   |                                              | 8,208                                      |       |              |       | 7,652 |      
|                                       | Less accumulated depreciation, depletion and amortization                         |                                              |                                            | 5,399 |              |       |       | 5,239 |      
|                                       |                                                                                   |                                              |                                            |       |              |      
|                                       |                                                                                   |                                              | Total property, plant and equipment, net   |       |              | 2,809 |       |       |       | 2,413 | 
|                                       |                                                                                   |                                              |                                            |       |              |      
|Other assets                           |                                                                                   |                                              |                                            |       |              |       |       |      
|                                       | Note receivable from affiliate                                                    |                                              |                                            |      |              |       |       | 332   |      
|                                       | Deferred income taxes                                                             |                                              |                                            | 20    |              |       |       | 132   |      
|                                       | Other                                                                             |                                              |                                            | 64    |              |       |       | 66    |      
|                                       |                                                                                   |                                              |                                            |       |              |      
|                                       |                                                                                   |                                              | 84                                         |       |              |       | 530   |      
|                                       |                                                                                   |                                              |                                            |       |              |      
|                                       |                                                                                   |                                              | Total assets                               |       | $            | 3,642 |       |       | $     | 3,465 | 
|                                       |                                                                                   |                                              |                                            |       |              |      
|                                      
|LIABILITIES AND STOCKHOLDERS EQUITY  
|Current liabilities                    |                                                                                   |                                              |                                            |       |              |       |       |      
|                                       | Accounts payable                                                                  |                                              |                                            |       |              |       |       |       |      
|                                       |                                                                                   | Trade                                        |                                            | $     | 87           |       |       | $     | 50    |      
|                                       |                                                                                   | Other                                        |                                            |       | 74           |       |       |       | 67    |      
|                                       | Liabilities from price risk management activities                                 |                                              |                                            | 365   |              |       |       | 243   |      
|                                       | Accrued interest                                                                  |                                              |                                            | 8     |              |       |       | 8     |      
|                                       | Other                                                                             |                                              |                                            | 43    |              |       |       | 25    |      
|                                       |                                                                                   |                                              |                                            |       |              |      
|                                       |                                                                                   |                                              | Total current liabilities                  |       |              | 577   |       |       |       | 393   | 
|                                       |                                                                                   |                                              |                                            |       |              |      
|Long-term debt                         |                                                                                   |                                              | 1,200                                      |       |              |       | 1,200 |      
|                                       |                                                                                   |                                              |                                            |       |              |      
|Other                                  |                                                                                   |                                              |                                            |       |              |       |       |      
|                                       | Liabilities from price risk management activities                                 |                                              |                                            | 261   |              |       |       | 273   |      
|                                       | Other                                                                             |                                              |                                            | 85    |              |       |       | 102   |      
|                                       |                                                                                   |                                              |                                            |       |              |      
|                                       |                                                                                   |                                              | 346                                        |       |              |       | 375   |      
|                                       |                                                                                   |                                              |                                            |       |              |      
|Commitments and contingencies          |                                                                                   |                                              |                                            |       |              |       |       |      
|Stockholders equity                   |                                                                                   |                                              |                                            |       |              |       |       |      
|                                       | Common stock, par value $1 per share; 1,000 shares
    authorized and outstanding |                                              |                                            |      |              |       |       |      |      
|                                       | Additional paid-in capital                                                        |                                              |                                            | 1,780 |              |       |       | 1,701 |      
|                                       | Retained earnings                                                                 |                                              |                                            | 121   |              |       |       | 109   |      
|                                       | Accumulated other comprehensive loss                                              |                                              |                                            | (382  | )            |       |       | (313  | )    
|                                       |                                                                                   |                                              |                                            |       |              |      
|                                       |                                                                                   |                                              | Total stockholders equity                 |       |              | 1,519 |       |       |       | 1,497 | 
|                                       |                                                                                   |                                              |                                            |       |              |      
|                                       |                                                                                   |                                              | Total liabilities and stockholders equity |       | $            | 3,642 |       |       | $     | 3,465 | 
|                                       |                                                                                   |                                              |                                            |       |              |      



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EL PASO PRODUCTION HOLDING COMPANY


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(In millions)


(Unaudited)


|                                     |                                                                               |                                          |                                           |      |      |      |    |      |     |      |  
|------------------------------------ | ----------------------------------------------------------------------------- | ---------------------------------------- | ----------------------------------------- | ---- | ---- | ---- | -- | ---- | --- | ---- | -
|                                     |                                                                               | Six Months                               |                                          
|                                     |                                                                               | Ended                                    |                                          
|                                     |                                                                               | June 30,                                 |                                          
|                                     |                                                                               |                                          |                                          
|                                     |                                                                               | 2005                                     |                                           |      | 2004 |     
|                                     |                                                                               |                                          |                                           |      |      |     
|Cash flows from operating activities |                                                                               |                                          |                                           |      |      |      |    |     
|                                     | Net income                                                                    |                                          | $                                         | 12   |      |      | $  | 60   |    
|                                     | Adjustments to reconcile net income to net cash from operating
    activities |                                          |                                           |      |      |      |    |      |    
|                                     |                                                                               | Depreciation, depletion and amortization |                                           |      | 174  |      |    |      | 172 |     
|                                     |                                                                               | Deferred income taxes                    |                                           |      | 23   |      |    |      | 35  |     
|                                     |                                                                               | Asset and liability changes              |                                           |      | (61  | )    |    |      | (65 | )   
|                                     |                                                                               |                                          |                                           |      |      |     
|                                     |                                                                               |                                          | Net cash provided by operating activities |      |      | 148  |    |      |     | 202  |  
|                                     |                                                                               |                                          |                                           |      |      |     
|Cash flows from investing activities |                                                                               |                                          |                                           |      |      |      |    |     
|                                     | Capital expenditures                                                          |                                          |                                           | (292 | )    |      |    | (266 | )  
|                                     | Cash paid for acquisitions, net of cash acquired                              |                                          |                                           | (178 | )    |      |    |     |    
|                                     | Change in note receivable from affiliate                                      |                                          |                                           | 215  |      |      |    | 102  |    
|                                     | Addition to restricted cash                                                   |                                          |                                           | (10  | )    |      |    |     |    
|                                     | Other                                                                         |                                          |                                           | 6    |      |      |    |     |    
|                                     |                                                                               |                                          |                                           |      |      |     
|                                     |                                                                               |                                          | Net cash used in investing activities     |      |      | (259 | )  |      |     | (164 | )
|                                     |                                                                               |                                          |                                           |      |      |     
|Cash flows from financing activities |                                                                               |                                          |                                           |      |      |      |    |     
|                                     | Contribution from parent                                                      |                                          |                                           | 79   |      |      |    |     |    
|                                     |                                                                               |                                          |                                           |      |      |     
|                                     |                                                                               |                                          | Net cash provided by financing activities |      |      | 79   |    |      |     |     |  
|                                     |                                                                               |                                          |                                           |      |      |     
|Change in cash and cash equivalents  |                                                                               |                                          | (32                                       | )    |      |      | 38 |     
|Cash and cash equivalents            |                                                                               |                                          |                                           |      |      |      |    |     
|                                     | Beginning of period                                                           |                                          |                                           | 124  |      |      |    | 34   |    
|                                     |                                                                               |                                          |                                           |      |      |     
|                                     | End of period                                                                 |                                          | $                                         | 92   |      |      | $  | 72   |    
|                                     |                                                                               |                                          |                                           |      |      |     



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EL PASO PRODUCTION HOLDING COMPANY


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


(In millions)


(Unaudited)


|                                                                 |                                                                                                                                                               |                                   |    |            |          |   |    |      |     |   |      |      |     |   |    |      |     |  
|---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------- | -- | ---------- | -------- | - | -- | ---- | --- | - | ---- | ---- | --- | - | -- | ---- | --- | -
|                                                                 |                                                                                                                                                               |                                   |    | Six Months |         
|                                                                 |                                                                                                                                                               | Quarter Ended                     |    |            | Ended    |  
|                                                                 |                                                                                                                                                               | June 30,                          |    |            | June 30, |  
|                                                                 |                                                                                                                                                               |                                   |    |            |          |  
|                                                                 |                                                                                                                                                               | 2005                              |    |            | 2004     |   |    | 2005 |     |   | 2004 |     
|                                                                 |                                                                                                                                                               |                                   |    |            |          |   |    |      |     |   |      |     
|Net income                                                       |                                                                                                                                                               | $                                 | 11 |            |          | $ | 27 |      |     | $ | 12   |      |     | $ | 60 |     
|                                                                 |                                                                                                                                                               |                                   |    |            |          |   |    |      |     |   |      |     
|Unrealized net gains (losses) from cash flow hedging activities: |                                                                                                                                                               |                                   |    |            |          |   |    |      |     |   |      |      |     |   |    |     
|                                                                 | Unrealized mark-to-market losses arising during period
    (net of income taxes of $1 and $88 in 2005 and $33 and $82
    in 2004)                            |                                   |    | (3         | )        |   |    | (58  | )   |   |      | (154 | )   |   |    | (143 | )  
|                                                                 | Reclassification adjustments for changes in initial value to the
    settlement date (net of income taxes of $26 and $48 in 2005 and
    $21 and $42 in 2004) |                                   |    | 46         |          |   |    | 39   |     |   |      | 85   |     |   |    | 74   |    
|                                                                 |                                                                                                                                                               |                                   |    |            |          |   |    |      |     |   |      |     
|                                                                 |                                                                                                                                                               | Other comprehensive income (loss) |    |            | 43       |   |    |      | (19 | ) |      |      | (69 | ) |    |      | (69 | )
|                                                                 |                                                                                                                                                               |                                   |    |            |          |   |    |      |     |   |      |     
|Comprehensive income (loss)                                      |                                                                                                                                                               | $                                 | 54 |            |          | $ | 8  |      |     | $ | (57  | )    |     | $ | (9 | )   
|                                                                 |                                                                                                                                                               |                                   |    |            |          |   |    |      |     |   |      |     



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EL PASO PRODUCTION HOLDING COMPANY


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)


1. Basis of Presentation and Significant Accounting
Policies


Basis of Presentation




Significant Accounting Policies




2. Acquisitions








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|                   |  |               |     |            |          |   |     |      |  |   |      |  |  |   |     | 
|------------------ |  | ------------- | --- | ---------- | -------- | - | --- | ---- |  | - | ---- |  |  | - | --- | 
|                   |  |               |     | Six Months |         
|                   |  | Quarter Ended |     |            | Ended    |  
|                   |  | June 30,      |     |            | June 30, |  
|                   |  |               |     |            |          |  
|                   |  | 2005          |     |            | 2004     |   |     | 2005 |  |   | 2004 | 
|                   |  |               |     |            |          |   |     |      |  |   |      | 
|                   |  | Unaudited     |    
|                   |  | (In millions) |    
|Operating revenues |  | $             | 196 |            |          | $ | 200 |      |  | $ | 363  |  |  | $ | 424 | 
|                   |  |               |     |            |          |   |     |      |  |   |      | 
|Net income         |  | $             | 11  |            |          | $ | 30  |      |  | $ | 13   |  |  | $ | 64  | 
|                   |  |               |     |            |          |   |     |      |  |   |      | 

3. Commitments and Contingencies




| |                                        
| | ---------------------------------------
| | Legal Proceedings and Other Contingency

Grynberg. Qui Tam


Will Price (formerly Quinque). Will Price
et al v. Gas Pipelines and Their Predecessors,
et al.


Reserve Revisions.


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| |                  
| | -----------------
| | Other Contingency

Raton.






| |                      
| | ---------------------
| | Environmental Matters







| |           
| | ----------
| | Guarantees





|   |                             
|-- | ----------------------------
|4. | Transactions with Affiliates

Cash Management Program.


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Taxes.


Capital Contribution.


Other Affiliate Balances.




Affiliate Revenues and Expenses.


|                                                           |  |               |    |            |          |   |     |      |  |   |      |  |  |   |     | 
|---------------------------------------------------------- |  | ------------- | -- | ---------- | -------- | - | --- | ---- |  | - | ---- |  |  | - | --- | 
|                                                           |  |               |    | Six Months |         
|                                                           |  | Quarter Ended |    |            | Ended    |  
|                                                           |  | June 30,      |    |            | June 30, |  
|                                                           |  |               |    |            |          |  
|                                                           |  | 2005          |    |            | 2004     |   |     | 2005 |  |   | 2004 | 
|                                                           |  |               |    |            |          |   |     |      |  |   |      | 
|                                                           |  | (In millions) |   
|Operating revenues                                         |  | $             | 97 |            |          | $ | 103 |      |  | $ | 212  |  |  | $ | 227 | 
|Operating expenses from affiliates                         |  |               | 27 |            |          |   | 28  |      |  |   | 54   |  |  |   | 52  | 
|Reimbursements of operating expenses charged to affiliates |  |               | 26 |            |          |   | 26  |      |  |   | 47   |  |  |   | 48  | 



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Item 2. Managements Discussion and Analysis
of Financial Condition and Results of Operations




Results of Operations




Overview




Significant Operational Factors Since December 31,
2004






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Higher realized prices. During the first six months of
    2005, we continued to benefit from a strong commodity price
    environment. Realized natural gas prices, excluding hedges,
    increased nine percent compared to 2004. However, under our
    hedge program, approximately 60 percent of our natural gas
    production for the first six months of 2005 was hedged at an
    average price of $3.21 per MMBtu, significantly below the
    market price of natural gas. Accordingly, we realized natural
    gas prices, including hedges, that were three percent lower than
    in 2004. Realized prices for oil, condensate and natural gas
    liquids (NGL), which were not hedged, increased 35 percent
    compared to 2004.            
|
| |  | Average daily production of 423 MMcfe/d. Our average
    daily production in the second quarter of 2005 increased over
    eight percent as compared with the first quarter of 2005,
    primarily due to the acquisitions discussed below. These
    acquisitions benefited our average daily production in the six
    month period by 39 MMcfe/d. In July 2005, hurricanes in the
    Gulf of Mexico caused us to shut in production for periods of
    time, reducing production volumes by approximately
    7 MMcfe/d for the month.                                                                                                                                                                                                                   
|
| |  | Acquisitions and other capital expenditures.During the
    first six months of 2005, our capital expenditures of
    $481 million included acquisitions in east and south Texas
    and the purchase of the interest held by one of our partners
    under a net profits interest agreement for a total of
    $244 million (net of cash acquired). These acquisitions
    added properties with approximately 131 Bcfe of proved
    reserves and 48 MMcfe/d of production at the time of
    acquisition. More importantly, the Texas acquisitions offer
    additional exploration upside in two of our key operating areas.
    We have integrated these acquisitions into our operations with
    minimal additional administrative expenses. The proved

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| |  |                                                                                                                                                                                         
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | reserves associated with these acquisitions replace
    approximately 86 percent of our anticipated 2005 production
    based on annualized first six months of 2005 production results.



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In July 2005, we announced we will acquire Medicine Bow Energy
    Corporation for $814 million. With this acquisition, we
    will acquire an estimated 356 Bcfe of proved reserves,
    primarily in the Rocky Mountains and east Texas. Of this proved
    reserve amount, our net interest of approximately 226 Bcfe will
    not be consolidated in our reserves, as these reserves are owned
    by an unconsolidated affiliate of Medicine Bow. The operating
    results associated with these unconsolidated reserves will be
    reported through an equity interest. The acquisition of these
    properties will complement our existing operations, diversify
    our commodity mix and increase our reserve life. The transaction
    is expected to close during the third quarter of 2005.



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Drilling Results.In 2005, we announced deep shelf
    discoveries at West Cameron Block 75 and West Cameron
    Block 62 in the Gulf of Mexico. At West Cameron
    Block 75, we tested the discovery and anticipate
    deliverability of approximately 40 MMcfe/d to begin in the
    fourth quarter of 2005, after the installation of facilities. We
    are the operator and own a 36 percent working interest and
    an approximate 30 percent net revenue interest in West
    Cameron Block 75.

Outlook for Remainder of 2005




Production Hedge Position






10



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##### Table of Contents





| |                  
| | -----------------
| | Operating Results



|                           |                  |               |      |            |          |   |      |      |  |   |      |    |  |   |      |     | 
|-------------------------- | ---------------- | ------------- | ---- | ---------- | -------- | - | ---- | ---- |  | - | ---- | -- |  | - | ---- | --- | 
|                           |                  |               |      | Six Months |         
|                           |                  | Quarter Ended |      |            | Ended    |  
|                           |                  | June 30,      |      |            | June 30, |  
|                           |                  |               |      |            |          |  
|                           |                  | 2005          |      |            | 2004     |   |      | 2005 |  |   | 2004 |   
|                           |                  |               |      |            |          |   |      |      |  |   |      |   
|                           |                  | (In millions) |     
|Operating revenues         |                  | $             | 196  |            |          | $ | 193  |      |  | $ | 356  |    |  | $ | 412  |    
|Operating expenses         |                  |               | (164 | )          |          |   | (133 | )    |  |   | (306 | )  |  |   | (288 | )  
|                           |                  |               |      |            |          |   |      |      |  |   |      |   
|                           | Operating income |               |      | 32         |          |   |      | 60   |  |   |      | 50 |  |   |      | 124 | 
|Other income, net          |                  |               |     |            |          |   |     |      |  |   | 1    |    |  |   |     |    
|                           |                  |               |      |            |          |   |      |      |  |   |      |   
|                           | EBIT             |               |      | 32         |          |   |      | 60   |  |   |      | 51 |  |   |      | 124 | 
|Affiliated interest income |                  |               | 4    |            |          |   | 4    |      |  |   | 7    |    |  |   | 9    |    
|Interest expense           |                  |               | (19  | )          |          |   | (21  | )    |  |   | (38  | )  |  |   | (39  | )  
|Income taxes               |                  |               | (6   | )          |          |   | (16  | )    |  |   | (8   | )  |  |   | (34  | )  
|                           |                  |               |      |            |          |   |      |      |  |   |      |   
|Net income                 |                  | $             | 11   |            |          | $ | 27   |      |  | $ | 12   |    |  | $ | 60   |    
|                           |                  |               |      |            |          |   |      |      |  |   |      |   

11



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##### Table of Contents





|                                            |                                               |                                 |    |            |          |   |     |      |      |   |      |      |      |   |     |      |      |  
|------------------------------------------- | --------------------------------------------- | ------------------------------- | -- | ---------- | -------- | - | --- | ---- | ---- | - | ---- | ---- | ---- | - | --- | ---- | ---- | -
|                                            |                                               |                                 |    | Six Months |         
|                                            |                                               | Quarter Ended                   |    |            | Ended    |  
|                                            |                                               | June 30,                        |    |            | June 30, |  
|                                            |                                               |                                 |    |            |          |  
|                                            |                                               | 2005                            |    |            | 2004     |   |     | 2005 |      |   | 2004 |     
|                                            |                                               |                                 |    |            |          |   |     |      |      |   |      |     
|                                            |                                               | (In millions)                   |   
|Operating revenues:                         |                                               |                                 |    |            |          |   |     |      |      |   |      |      |      |   |     |     
|                                            | Natural gas                                   |                                 | $  | 159        |          |   | $   | 161  |      |   | $    | 285  |      |   | $   | 340  |     
|                                            | Oil, condensate and NGL                       |                                 |    | 36         |          |   |     | 31   |      |   |      | 70   |      |   |     | 71   |     
|                                            | Other                                         |                                 |    | 1          |          |   |     | 1    |      |   |      | 1    |      |   |     | 1    |     
|                                            |                                               |                                 |    |            |          |   |     |      |      |   |      |     
|                                            |                                               | Total operating revenues        |    |            | 196      |   |     |      | 193  |   |      |      | 356  |   |     |      | 412  |  
|Transportation and net product
    costs(1) |                                               |                                 | (9 | )          |          |   | (12 | )    |      |   | (18  | )    |      |   | (21 | )   
|                                            |                                               |                                 |    |            |          |   |     |      |      |   |      |     
|                                            |                                               | Total operating margin          |    |            | 187      |   |     |      | 181  |   |      |      | 338  |   |     |      | 391  |  
|Operating expenses:                         |                                               |                                 |    |            |          |   |     |      |      |   |      |      |      |   |     |     
|                                            | Depreciation, depletion and amortization      |                                 |    | (92        | )        |   |     | (79  | )    |   |      | (174 | )    |   |     | (172 | )   
|                                            | Production
    costs(2)                       |                                 |    | (34        | )        |   |     | (21  | )    |   |      | (59  | )    |   |     | (44  | )   
|                                            | General and administrative expenses           |                                 |    | (25        | )        |   |     | (18  | )    |   |      | (49  | )    |   |     | (37  | )   
|                                            | Taxes, other than production and income taxes |                                 |    | (2         | )        |   |     | (1   | )    |   |      | (4   | )    |   |     | (3   | )   
|                                            | Restructuring charges                         |                                 |    | (2         | )        |   |     | (2   | )    |   |      | (2   | )    |   |     | (11  | )   
|                                            |                                               |                                 |    |            |          |   |     |      |      |   |      |     
|                                            |                                               | Total operating
    expenses(1) |    |            | (155     | ) |     |      | (121 | ) |      |      | (288 | ) |     |      | (267 | )
|                                            |                                               |                                 |    |            |          |   |     |      |      |   |      |     
|                                            | Operating income                              |                                 |    | 32         |          |   |     | 60   |      |   |      | 50   |      |   |     | 124  |     
|Other income, net                           |                                               |                                 |   |            |          |   |    |      |      |   | 1    |      |      |   |    |     
|                                            |                                               |                                 |    |            |          |   |     |      |      |   |      |     
|EBIT                                        |                                               | $                               | 32 |            |          | $ | 60  |      |      | $ | 51   |      |      | $ | 124 |     
|                                            |                                               |                                 |    |            |          |   |     |      |      |   |      |     

|                                    |                                                      |                                                         |                               |         |                  |      |   |          |         |      |      |      |       |      |   |        |          |      |   |        |        |      |  |       |       |     | 
|----------------------------------- | ---------------------------------------------------- | ------------------------------------------------------- | ----------------------------- | ------- | ---------------- | ---- | - | -------- | ------- | ---- | ---- | ---- | ----- | ---- | - | ------ | -------- | ---- | - | ------ | ------ | ---- |  | ----- | ----- | --- | 
|                                    |                                                      | Quarter Ended                                           |                               |         | Six Months Ended |     
|                                    |                                                      | June 30,                                                |                               |         | June 30,         |     
|                                    |                                                      |                                                         |                               |         |                  |     
|                                    |                                                      |                                                         |                               | Percent |                  |      |   |          | Percent |     
|                                    |                                                      | 2005                                                    |                               |         | 2004             |      |   | Variance |         |      | 2005 |      |       | 2004 |   |        | Variance |     
|                                    |                                                      |                                                         |                               |         |                  |      |   |          |         |      |      |      |       |      |   |        |          |     
|Volumes, prices and costs per unit: |                                                      |                                                         |                               |         |                  |      |   |          |         |      |      |      |       |      |   |        |          |      |   |        |        |      |  |      
|                                    | Natural gas                                          |                                                         |                               |         |                  |      |   |          |         |      |      |      |       |      |   |        |          |      |   |        |        |      |  |       |      
|                                    |                                                      | Volumes (MMcf)                                          |                               |         | 34,889           |      |   |          | 35,436  |      |      |      | (2)%  |      |   |        | 66,087   |      |   |        | 76,360 |      |  |       | (13)% |    
|                                    |                                                      | Average realized prices including
    hedges ($/Mcf)(3) |                               | $       | 4.55             |      |   | $        | 4.53    |      |      |      | %    |      |   | $      | 4.31     |      |   | $      | 4.44   |      |  |       | (3)%  |    
|                                    |                                                      | Average realized prices excluding
    hedges ($/Mcf)(3) |                               | $       | 6.64             |      |   | $        | 5.93    |      |      |      | 12%   |      |   | $      | 6.35     |      |   | $      | 5.80   |      |  |       | 9%    |    
|                                    |                                                      | Average transportation costs ($/Mcf)                    |                               | $       | 0.23             |      |   | $        | 0.21    |      |      |      | 10%   |      |   | $      | 0.23     |      |   | $      | 0.18   |      |  |       | 28%   |    
|                                    | Oil, condensate and NGL                              |                                                         |                               |         |                  |      |   |          |         |      |      |      |       |      |   |        |          |      |   |        |        |      |  |       |      
|                                    |                                                      | Volumes (MBbls)                                         |                               |         | 858              |      |   |          | 875     |      |      |      | (2)%  |      |   |        | 1,742    |      |   |        | 2,386  |      |  |       | (27)% |    
|                                    |                                                      | Average realized prices including
    hedges ($/Bbl)(3) |                               | $       | 41.94            |      |   | $        | 35.26   |      |      |      | 19%   |      |   | $      | 40.29    |      |   | $      | 29.95  |      |  |       | 35%   |    
|                                    |                                                      | Average realized prices excluding
    hedges ($/Bbl)(3) |                               | $       | 41.94            |      |   | $        | 35.26   |      |      |      | 19%   |      |   | $      | 40.29    |      |   | $      | 29.95  |      |  |       | 35%   |    
|                                    |                                                      | Average transportation costs ($/Bbl)                    |                               | $       | 0.63             |      |   | $        | 1.89    |      |      |      | (67)% |      |   | $      | 0.77     |      |   | $      | 1.52   |      |  |       | (49)% |    
|                                    | Total equivalent volumes (MMcfe)                     |                                                         |                               | 40,037  |                  |      |   | 40,687   |         |      |      | (2)% |       |      |   | 76,539 |          |      |   | 90,680 |        |      |  | (16)% |      
|                                    | Production costs ($/Mcfe)                            |                                                         |                               |         |                  |      |   |          |         |      |      |      |       |      |   |        |          |      |   |        |        |      |  |       |      
|                                    |                                                      | Average lease operating costs                           |                               | $       | 0.64             |      |   | $        | 0.45    |      |      |      | 42%   |      |   | $      | 0.57     |      |   | $      | 0.41   |      |  |       | 39%   |    
|                                    |                                                      | Average production taxes                                |                               |         | 0.20             |      |   |          | 0.07    |      |      |      | 186%  |      |   |        | 0.20     |      |   |        | 0.07   |      |  |       | 186%  |    
|                                    |                                                      |                                                         |                               |         |                  |      |   |          |         |      |      |      |       |      |   |        |          |     
|                                    |                                                      |                                                         | Total production
    costs(2) |         | $                | 0.84 |   |          | $       | 0.52 |      |      |       | 62%  |   |        | $        | 0.77 |   |        | $      | 0.48 |  |       |       | 60% | 
|                                    |                                                      |                                                         |                               |         |                  |      |   |          |         |      |      |      |       |      |   |        |          |     
|                                    | Average general and administrative expenses ($/Mcfe) |                                                         | $                             | 0.63    |                  |      | $ | 0.43     |         |      |      | 47%  |       |      | $ | 0.63   |          |      | $ | 0.40   |        |      |  | 58%   |      
|                                    | Unit of production depletion cost ($/Mcfe)           |                                                         | $                             | 2.14    |                  |      | $ | 1.80     |         |      |      | 19%  |       |      | $ | 2.12   |          |      | $ | 1.76   |        |      |  | 20%   |      






|    |                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------
|(1) | Transportation and net product costs are included in operating
    expenses on our consolidated statements of income.      
|(2) | Production costs include lease operating costs and production
    related taxes (including ad valorem and severance taxes).
|(3) | Prices are stated before transportation costs.                                                                             

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Quarter and Six Months Ended June 30, 2005 Compared to
Quarter and Six Months Ended June 30, 2004




|                                                  |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |     |     |  
|------------------------------------------------- | ----------------------------------------------- | ----------------------- | - | --- | --------- | - | - | -------- | --- | ---- | ------ | - | - |  | - | --- | --- | -
|                                                  |                                                 | Variance                |  
|                                                  |                                                 |                         |  
|                                                  |                                                 | Operating               |   |     | Operating |   |   |          |     | EBIT |       
|                                                  |                                                 | Revenue                 |   |     | Expense   |   |   | Other(1) |     |      | Impact |  
|                                                  |                                                 |                         |   |     |           |   |   |          |     |      |        |  
|                                                  |                                                 | Favorable/(Unfavorable) |  
|                                                  |                                                 | (In millions)           |  
|Quarter Ended June 30,                            |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|Natural Gas Revenue                               |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|                                                  | Higher realized prices in 2005                  |                         | $ | 25  |           |   | $ |         |     |      | $      |  |   |  | $ | 25  |    
|                                                  | Lower production volumes in 2005                |                         |   | (3  | )         |   |   |         |     |      |        |  |   |  |   | (3  | )  
|                                                  | Impact from hedge program in 2005 versus 2004   |                         |   | (24 | )         |   |   |         |     |      |        |  |   |  |   | (24 | )  
|Oil, Condensate, and NGL Revenue                  |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|                                                  | Higher realized prices in 2005                  |                         |   | 6   |           |   |   |         |     |      |        |  |   |  |   | 6   |    
|                                                  | Lower production volumes in 2005                |                         |   | (1  | )         |   |   |         |     |      |        |  |   |  |   | (1  | )  
|Depreciation, Depletion, and Amortization Expense |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|                                                  | Higher depletion rate in 2005                   |                         |   |    |           |   |   | (14      | )   |      |        |  |   |  |   | (14 | )  
|                                                  | Lower production volumes in 2005                |                         |   |    |           |   |   | 1        |     |      |        |  |   |  |   | 1   |    
|Production Costs                                  |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|                                                  | Higher lease operating costs in 2005            |                         |   |    |           |   |   | (8       | )   |      |        |  |   |  |   | (8  | )  
|                                                  | Higher production taxes in 2005                 |                         |   |    |           |   |   | (5       | )   |      |        |  |   |  |   | (5  | )  
|Other                                             |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|                                                  | Higher general and administrative costs in 2005 |                         |   |    |           |   |   | (7       | )   |      |        |  |   |  |   | (7  | )  
|                                                  | Other                                           |                         |   |    |           |   |   | (1       | )   |      |        | 3 |   |  |   | 2   |    
|                                                  |                                                 |                         |   |     |           |   |   |          |     |      |        |  
|                                                  |                                                 | Total Variances         |   | $   | 3         |   |   | $        | (34 | )    |        | $ | 3 |  |   | $   | (28 | )
|                                                  |                                                 |                         |   |     |           |   |   |          |     |      |        |  
|Six Months Ended June 30,                         |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|Natural Gas Revenue                               |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|                                                  | Higher realized prices in 2005                  |                         | $ | 36  |           |   | $ |         |     |      | $      |  |   |  | $ | 36  |    
|                                                  | Lower production volumes in 2005                |                         |   | (60 | )         |   |   |         |     |      |        |  |   |  |   | (60 | )  
|                                                  | Impact from hedge program in 2005 versus 2004   |                         |   | (31 | )         |   |   |         |     |      |        |  |   |  |   | (31 | )  
|Oil, Condensate, and NGL Revenue                  |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|                                                  | Higher realized prices in 2005                  |                         |   | 18  |           |   |   |         |     |      |        |  |   |  |   | 18  |    
|                                                  | Lower production volumes in 2005                |                         |   | (19 | )         |   |   |         |     |      |        |  |   |  |   | (19 | )  
|Depreciation, Depletion, and Amortization Expense |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|                                                  | Higher depletion rate in 2005                   |                         |   |    |           |   |   | (27      | )   |      |        |  |   |  |   | (27 | )  
|                                                  | Lower production volumes in 2005                |                         |   |    |           |   |   | 25       |     |      |        |  |   |  |   | 25  |    
|Production Costs                                  |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|                                                  | Higher lease operating costs in 2005            |                         |   |    |           |   |   | (7       | )   |      |        |  |   |  |   | (7  | )  
|                                                  | Higher production taxes in 2005                 |                         |   |    |           |   |   | (8       | )   |      |        |  |   |  |   | (8  | )  
|Other                                             |                                                 |                         |   |     |           |   |   |          |     |      |        |   |   |  |   |    
|                                                  | Higher general and administrative costs in 2005 |                         |   |    |           |   |   | (12      | )   |      |        |  |   |  |   | (12 | )  
|                                                  | Other                                           |                         |   |    |           |   |   | 8        |     |      |        | 4 |   |  |   | 12  |    
|                                                  |                                                 |                         |   |     |           |   |   |          |     |      |        |  
|                                                  |                                                 | Total Variances         |   | $   | (56       | ) |   | $        | (21 | )    |        | $ | 4 |  |   | $   | (73 | )
|                                                  |                                                 |                         |   |     |           |   |   |          |     |      |        |  






|    |                                                                            
|--- | ---------------------------------------------------------------------------
|(1) | Consists primarily of changes in transportation costs and other
    income.

Operating Revenues.


13



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Depreciation, depletion, and amortization expense.


Production costs.


Other.


Income Taxes


|                   |  |                                |    |   |                  |   |    |      |  |   |      |   |  |   |    |  
|------------------ |  | ------------------------------ | -- | - | ---------------- | - | -- | ---- |  | - | ---- | - |  | - | -- | -
|                   |  | Quarter Ended                  |    |   | Six Months Ended |  
|                   |  | June 30,                       |    |   | June 30,         |  
|                   |  |                                |    |   |                  |  
|                   |  | 2005                           |    |   | 2004             |   |    | 2005 |  |   | 2004 |  
|                   |  |                                |    |   |                  |   |    |      |  |   |      |  
|                   |  | (In millions except for rates) |   
|Income taxes       |  | $                              | 6  |   |                  | $ | 16 |      |  | $ | 8    |   |  | $ | 34 |  
|Effective tax rate |  |                                | 35 | % |                  |   | 37 | %    |  |   | 40   | % |  |   | 36 | %



Liquidity






Commitments and Contingencies




14



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CAUTIONARY STATEMENTS FOR PURPOSES OF THE SAFE
HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995











|        |                                                           
|------- | ----------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market Risk



15



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|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures

Material Weakness Previously Disclosed




Evaluation of Disclosure Controls and Procedures




Changes in Internal Control Over Financial Reporting






| |   |                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------
| |  | Implemented automated and manual controls for our primary
    financial system to monitor unauthorized password changes.
|
| |  | Developed a segregation of duties matrix for our primary
    financial system that documents existing role assignments. 





| |   |                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Performed an in-depth analysis of the companys primary
    financial accounting system to examine all existing functional
    access to identify any potentially incompatible duties.               
|
| |  | Enhanced the segregation of duties matrix for our primary
    financial accounting system based on the in-depth analysis of
    user access.                                                         
|
| |  | Modified the primary financial accounting system to eliminate or
    modify potentially conflicting functionality.                                                                                   
|
| |  | Implemented a process to evaluate all new user access requests
    against segregation of duties matrices to ensure no new
    conflicts are created for our primary financial accounting
    system.
|
| |  | Separated security administration rights from system update
    capabilities for our primary financial accounting system.                                                                            
|
| |  | Implemented monitoring procedures to monitor activities of
    security administration roles for our primary financial
    accounting system.                                                        



16



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##### Table of Contents






PART II  OTHER INFORMATION





Item 1. Legal Proceedings




Air Permit Violation.





Item 2. Unregistered Sales of Equity Securities and
Use of Proceeds







Item 3. Defaults Upon Senior Securities







Item 4. Submission of Matters to a Vote of Security
Holders







Item 5. Other Information







Item 6. Exhibits






|        |      |    |             |                                                                                                                                                                                                               
|------- | ---- | -- | ----------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |      |    |            
|Number  |      |    | Description
|        |      |    |            
|        | 10   | .A |             | Stock Purchase Agreement dated July 18, 2005 among the
    Registrant, Medicine Bow Energy Corporation and the other
    parties identified therein (Exhibit 10.A to our
    Form 8-K filed on July 19, 2005).
|        | *31  | .A |             | Certification of Principal Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                   
|        | *31  | .B |             | Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                       
|        | **32 | .A |             | Certification of Principal Executive Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                   
|        | **32 | .B |             | Certification of Chief Financial Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                       





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We hereby undertake, pursuant to Regulation S-K,
    Item 601(b), paragraph (4)(iii), to furnish to the
    U.S. Securities and Exchange Commission, upon request, all
    constituent instruments defining the rights of holders of our
    long-term debt not filed herewith for the reason that the total
    amount of securities authorized under any of such instruments
    does not exceed 10 percent of our total consolidated assets.

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SIGNATURES






| |                                   
| | ----------------------------------
| | EL PASO PRODUCTION HOLDING COMPANY



| |                              
| | -----------------------------
| | /s/ D. Mark Leland           
| |                              
| | D. Mark Leland               
| | Executive Vice President and 
| | Chief Financial Officer      
| | (Principal Financial Officer)



| |                               
| | ------------------------------
| | /s/ Gene T. Waguespack        
| |                               
| | Gene T. Waguespack            
| | Senior Vice President,        
| | Treasurer and Controller      
| | (Principal Accounting Officer)

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EL PASO PRODUCTION HOLDING COMPANY


EXHIBIT INDEX




|        |      |    |             |                                                                                                                                                                                                               
|------- | ---- | -- | ----------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |      |    |            
|Number  |      |    | Description
|        |      |    |            
|        | 10   | .A |             | Stock Purchase Agreement dated July 18, 2005 among the
    Registrant, Medicine Bow Energy Corporation and the other
    parties identified therein (Exhibit 10.A to our
    Form 8-K filed on July 19, 2005).
|        | *31  | .A |             | Certification of Principal Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                   
|        | *31  | .B |             | Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                       
|        | **32 | .A |             | Certification of Principal Executive Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                   
|        | **32 | .B |             | Certification of Chief Financial Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.