##### 



Exhibit 99.B
 EL PASO CORPORATION
Operating Statistics
Third Quarter 2007
 Table of Contents
 PageConsolidated Statements  of Income
    
    2Consolidated Operating ResultsConsolidated Net Income
    
    3Segment Information
    
    4Business Segment ResultsPipelinesEarnings Before Interest Expense and Income Taxes
    
    5Throughput
    
    6Exploration and ProductionEarnings Before Interest Expense and Income Taxes
    
    7Average Daily Volumes, Realized Prices and Costs Per Unit
    
    8MarketingEarnings Before Interest Expense and Income Taxes
    
    9Operating Data
    
    10PowerEarnings Before Interest Expense and Income Taxes
    
    11Corporate and otherEarnings Before Interest Expense and Income Taxes
    
    12
 1




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##### 



EL PASO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per common share amounts)
(UNAUDITED)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Operating revenues
    
    $
    1,166
    
    
    $
    942
    
    
    $
    3,386
    
    
    $
    3,368Operating expensesCost of products and services
    
    
    55
    
    
    
    69
    
    
    
    170
    
    
    
    201Operation and maintenance
    
    
    348
    
    
    
    334
    
    
    
    978
    
    
    
    957Depreciation, depletion and amortization
    
    
    293
    
    
    
    260
    
    
    
    850
    
    
    
    766Taxes, other than income taxes
    
    
    53
    
    
    
    61
    
    
    
    185
    
    
    
    180749
    
    
    
    724
    
    
    
    2,183
    
    
    
    2,104Operating income
    
    
    417
    
    
    
    218
    
    
    
    1,203
    
    
    
    1,264Earnings from unconsolidated affiliates
    
    
    (6
    )
    
    
    55
    
    
    
    75
    
    
    
    121Loss on debt extinguishment
    
    
    -
    
    
    
    (17
    )
    
    
    (287
    )
    
    
    (26
    )Other income, net
    
    
    72
    
    
    
    51
    
    
    
    178
    
    
    
    14266
    
    
    
    89
    
    
    
    (34
    )
    
    
    237Earnings before interest expense, income taxes, and other charges
    
    
    483
    
    
    
    307
    
    
    
    1,169
    
    
    
    1,501Interest and debt expense
    
    
    (228
    )
    
    
    (294
    )
    
    
    (742
    )
    
    
    (941
    )Income before income taxes
    
    
    255
    
    
    
    13
    
    
    
    427
    
    
    
    560Income taxes
    
    
    100
    
    
    
    (98
    )
    
    
    151
    
    
    
    14Income from continuing operations
    
    
    155
    
    
    
    111
    
    
    
    276
    
    
    
    546Discontinued operations, net of income taxes
    
    
    -
    
    
    
    24
    
    
    
    674
    
    
    
    95Net income
    
    
    155
    
    
    
    135
    
    
    
    950
    
    
    
    641Preferred stock dividends
    
    
    9
    
    
    
    9
    
    
    
    28
    
    
    
    28Net income available to common stockholders
    
    $
    146
    
    
    $
    126
    
    
    $
    922
    
    
    $
    613Earnings per common shareBasicIncome from continuing operations
    
    $
    0.21
    
    
    $
    0.15
    
    
    $
    0.36
    
    
    $
    0.77Discontinued operations, net of income taxes
    
    
    -
    
    
    
    0.03
    
    
    
    0.97
    
    
    
    0.14Net income per common share
    
    $
    0.21
    
    
    $
    0.18
    
    
    $
    1.33
    
    
    $
    0.91DilutedIncome from continuing operations
    
    $
    0.20
    
    
    $
    0.15
    
    
    $
    0.35
    
    
    $
    0.74Discontinued operations, net of income taxes
    
    
    -
    
    
    
    0.03
    
    
    
    0.96
    
    
    
    0.13Net income per common share
    
    $
    0.20
    
    
    $
    0.18
    
    
    $
    1.31
    
    
    $
    0.87Weighted average common shares outstandingBasic
    
    
    696
    
    
    
    693
    
    
    
    695
    
    
    
    673Diluted
    
    
    759
    
    
    
    697
    
    
    
    699
    
    
    
    734Dividends declared per common share
    
    $
    0.04
    
    
    $
    0.04
    
    
    $
    0.12
    
    
    $
    0.12
 2




---



##### 



EL PASO CORPORATION
CONSOLIDATED NET INCOME
(UNAUDITED)
 2007
    
    
    2006
    
    
    Year-to-Date(In millions, except per common share amounts)
    
    
    First
    
    Second
    
    Third
    
    
    First
    
    Second
    
    Third
    
    Fourth
    
    
    2007
    
    2006Operating revenues
    
    
    $
    1,022
    
    
    $
    1,198
    
    
    $
    1,166
    
    
    
    $
    1,337
    
    
    $
    1,089
    
    
    $
    942
    
    
    $
    913
    
    
    
    $
    3,386
    
    
    $
    3,368Operating expensesCost of products and services
    
    
    
    55
    
    
    
    60
    
    
    
    55
    
    
    
    
    62
    
    
    
    70
    
    
    
    69
    
    
    
    37
    
    
    
    
    170
    
    
    
    201Operation and maintenance
    
    
    
    301
    
    
    
    329
    
    
    
    348
    
    
    
    
    285
    
    
    
    338
    
    
    
    334
    
    
    
    380
    
    
    
    
    978
    
    
    
    957Depreciation, depletion and amortization
    
    
    
    271
    
    
    
    286
    
    
    
    293
    
    
    
    
    250
    
    
    
    256
    
    
    
    260
    
    
    
    281
    
    
    
    
    850
    
    
    
    766Taxes, other than income taxes
    
    
    
    60
    
    
    
    72
    
    
    
    53
    
    
    
    
    57
    
    
    
    62
    
    
    
    61
    
    
    
    52
    
    
    
    
    185
    
    
    
    180Total operating expenses
    
    
    
    687
    
    
    
    747
    
    
    
    749
    
    
    
    
    654
    
    
    
    726
    
    
    
    724
    
    
    
    750
    
    
    
    
    2,183
    
    
    
    2,104Operating income
    
    
    
    335
    
    
    
    451
    
    
    
    417
    
    
    
    
    683
    
    
    
    363
    
    
    
    218
    
    
    
    163
    
    
    
    
    1,203
    
    
    
    1,264Earnings from unconsolidated affiliates
    
    
    
    37
    
    
    
    44
    
    
    
    (6
    )
    
    
    
    29
    
    
    
    37
    
    
    
    55
    
    
    
    24
    
    
    
    
    75
    
    
    
    121Loss on debt extinguishment
    
    
    
    (201
    )
    
    
    (86
    )
    
    
    -
    
    
    
    
    (6
    )
    
    
    (3
    )
    
    
    (17
    )
    
    
    -
    
    
    
    
    (287
    )
    
    
    (26
    )Other income, net
    
    
    
    45
    
    
    
    61
    
    
    
    72
    
    
    
    
    50
    
    
    
    41
    
    
    
    51
    
    
    
    62
    
    
    
    
    178
    
    
    
    142Earnings before interest expense, income taxes and other charges
    
    
    
    216
    
    
    
    470
    
    
    
    483
    
    
    
    
    756
    
    
    
    438
    
    
    
    307
    
    
    
    249
    
    
    
    
    1,169
    
    
    
    1,501Interest and debt expense
    
    
    
    (283
    )
    
    
    (231
    )
    
    
    (228
    )
    
    
    
    (331
    )
    
    
    (316
    )
    
    
    (294
    )
    
    
    (287
    )
    
    
    
    (742
    )
    
    
    (941
    )Income (loss) before income taxes
    
    
    
    (67
    )
    
    
    239
    
    
    
    255
    
    
    
    
    425
    
    
    
    122
    
    
    
    13
    
    
    
    (38
    )
    
    
    
    427
    
    
    
    560Income taxes
    
    
    
    (19
    )
    
    
    70
    
    
    
    100
    
    
    
    
    124
    
    
    
    (12
    )
    
    
    (98
    )
    
    
    (23
    )
    
    
    
    151
    
    
    
    14Income (loss) from continuing operations
    
    
    
    (48
    )
    
    
    169
    
    
    
    155
    
    
    
    
    301
    
    
    
    134
    
    
    
    111
    
    
    
    (15
    )
    
    
    
    276
    
    
    
    546Discontinued operations, net of income taxes
    
    
    
    677
    
    
    
    (3
    )
    
    
    -
    
    
    
    
    55
    
    
    
    16
    
    
    
    24
    
    
    
    (151
    )
    
    
    
    674
    
    
    
    95Consolidated net income (loss)
    
    
    
    629
    
    
    
    166
    
    
    
    155
    
    
    
    
    356
    
    
    
    150
    
    
    
    135
    
    
    
    (166
    )
    
    
    
    950
    
    
    
    641Preferred stock dividends
    
    
    
    9
    
    
    
    10
    
    
    
    9
    
    
    
    
    10
    
    
    
    9
    
    
    
    9
    
    
    
    9
    
    
    
    
    28
    
    
    
    28Net income (loss) available to common stockholders
    
    
    $
    620
    
    
    $
    156
    
    
    $
    146
    
    
    
    $
    346
    
    
    $
    141
    
    
    $
    126
    
    
    $
    (175
    )
    
    
    $
    922
    
    
    $
    613Basic earnings (losses) per common share
    
    
    $
    0.89
    
    
    $
    0.23
    
    
    $
    0.21
    
    
    
    $
    0.53
    
    
    $
    0.21
    
    
    $
    0.18
    
    
    $
    (0.25
    )
    
    
    $
    1.33
    
    
    $
    0.91Diluted earnings (losses) per common share
    
    
    $
    0.89
    
    
    $
    0.22
    
    
    $
    0.20
    
    
    
    $
    0.49
    
    
    $
    0.21
    
    
    $
    0.18
    
    
    $
    (0.25
    )
    
    
    $
    1.31
    
    
    $
    0.87Basic average common shares outstanding
    
    
    
    694
    
    
    
    696
    
    
    
    696
    
    
    
    
    656
    
    
    
    671
    
    
    
    693
    
    
    
    693
    
    
    
    
    695
    
    
    
    673Diluted average common shares outstanding
    
    
    
    694
    
    
    
    757
    
    
    
    759
    
    
    
    
    724
    
    
    
    732
    
    
    
    697
    
    
    
    693
    
    
    
    
    699
    
    
    
    734
 3




---



##### 



EL PASO CORPORATION
SEGMENT INFORMATION
(UNAUDITED)
 2007
    
    
    2006
    
    
    Year-to-Date(In millions)
    
    
    First
    
    Second
    
    Third
    
    
    First
    
    Second
    
    Third
    
    Fourth
    
    
    2007
    
    2006Operating revenuesPipelines
    
    
    $
    644
    
    
    $
    614
    
    
    $
    586
    
    
    
    $
    643
    
    
    $
    580
    
    
    $
    582
    
    
    $
    597
    
    
    
    $
    1,844
    
    
    $
    1,805Exploration and Production
    
    
    
    505
    
    
    
    575
    
    
    
    575
    
    
    
    
    466
    
    
    
    462
    
    
    
    456
    
    
    
    470
    
    
    
    
    1,655
    
    
    
    1,384Marketing
    
    
    
    (135
    )
    
    
    (16
    )
    
    
    (9
    )
    
    
    
    205
    
    
    
    18
    
    
    
    (105
    )
    
    
    (176
    )
    
    
    
    (160
    )
    
    
    118Power
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    
    1
    
    
    
    2
    
    
    
    3
    
    
    
    -
    
    
    
    
    -
    
    
    
    6Corporate
and other, including eliminations (1)
    
    
    
    8
    
    
    
    25
    
    
    
    14
    
    
    
    
    22
    
    
    
    27
    
    
    
    6
    
    
    
    22
    
    
    
    
    47
    
    
    
    55Consolidated total
    
    
    $
    1,022
    
    
    $
    1,198
    
    
    $
    1,166
    
    
    
    $
    1,337
    
    
    $
    1,089
    
    
    $
    942
    
    
    $
    913
    
    
    
    $
    3,386
    
    
    $
    3,368Depreciation, depletion and amortizationPipelines
    
    
    $
    94
    
    
    $
    91
    
    
    $
    94
    
    
    
    $
    93
    
    
    $
    93
    
    
    $
    92
    
    
    $
    92
    
    
    
    $
    279
    
    
    $
    278Exploration and Production
    
    
    
    170
    
    
    
    189
    
    
    
    194
    
    
    
    
    146
    
    
    
    156
    
    
    
    163
    
    
    
    180
    
    
    
    
    553
    
    
    
    465Marketing
    
    
    
    1
    
    
    
    1
    
    
    
    -
    
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    
    2
    
    
    
    3Power
    
    
    
    -
    
    
    
    -
    
    
    
    1
    
    
    
    
    -
    
    
    
    1
    
    
    
    -
    
    
    
    1
    
    
    
    
    1
    
    
    
    1Corporate and other (1)
    
    
    
    6
    
    
    
    5
    
    
    
    4
    
    
    
    
    10
    
    
    
    5
    
    
    
    4
    
    
    
    7
    
    
    
    
    15
    
    
    
    19Consolidated total
    
    
    $
    271
    
    
    $
    286
    
    
    $
    293
    
    
    
    $
    250
    
    
    $
    256
    
    
    $
    260
    
    
    $
    281
    
    
    
    $
    850
    
    
    $
    766Operating income (loss)Pipelines
    
    
    $
    324
    
    
    $
    276
    
    
    $
    234
    
    
    
    $
    321
    
    
    $
    251
    
    
    $
    221
    
    
    $
    270
    
    
    
    $
    834
    
    
    $
    793Exploration and Production
    
    
    
    177
    
    
    
    229
    
    
    
    228
    
    
    
    
    191
    
    
    
    161
    
    
    
    138
    
    
    
    135
    
    
    
    
    634
    
    
    
    490Marketing
    
    
    
    (136
    )
    
    
    (20
    )
    
    
    (13
    )
    
    
    
    200
    
    
    
    8
    
    
    
    (113
    )
    
    
    (186
    )
    
    
    
    (169
    )
    
    
    95Power
    
    
    
    (5
    )
    
    
    (9
    )
    
    
    (9
    )
    
    
    
    (15
    )
    
    
    (17
    )
    
    
    (14
    )
    
    
    (15
    )
    
    
    
    (23
    )
    
    
    (46
    )Corporate and other (1)
    
    
    
    (25
    )
    
    
    (25
    )
    
    
    (23
    )
    
    
    
    (14
    )
    
    
    (40
    )
    
    
    (14
    )
    
    
    (41
    )
    
    
    
    (73
    )
    
    
    (68
    )Consolidated total
    
    
    $
    335
    
    
    $
    451
    
    
    $
    417
    
    
    
    $
    683
    
    
    $
    363
    
    
    $
    218
    
    
    $
    163
    
    
    
    $
    1,203
    
    
    $
    1,264Earnings (losses) before interest expense and income taxes (EBIT)Pipelines
    
    
    $
    364
    
    
    $
    318
    
    
    $
    275
    
    
    
    $
    346
    
    
    $
    286
    
    
    $
    253
    
    
    $
    302
    
    
    
    $
    957
    
    
    $
    885Exploration and Production
    
    
    
    179
    
    
    
    235
    
    
    
    232
    
    
    
    
    199
    
    
    
    163
    
    
    
    141
    
    
    
    137
    
    
    
    
    646
    
    
    
    503Marketing
    
    
    
    (135
    )
    
    
    5
    
    
    
    (8
    )
    
    
    
    208
    
    
    
    13
    
    
    
    (108
    )
    
    
    (184
    )
    
    
    
    (138
    )
    
    
    113Power
    
    
    
    18
    
    
    
    16
    
    
    
    (67
    )
    
    
    
    3
    
    
    
    10
    
    
    
    38
    
    
    
    31
    
    
    
    
    (33
    )
    
    
    51Corporate and other (1)
    
    
    
    (210
    )
    
    
    (104
    )
    
    
    51
    
    
    
    
    -
    
    
    
    (34
    )
    
    
    (17
    )
    
    
    (37
    )
    
    
    
    (263
    )
    
    
    (51
    )Consolidated total
    
    
    $
    216
    
    
    $
    470
    
    
    $
    483
    
    
    
    $
    756
    
    
    $
    438
    
    
    $
    307
    
    
    $
    249
    
    
    
    $
    1,169
    
    
    $
    1,501
 (1)
    
    Includes our corporate businesses, our telecommunications business and residual assets and liabilities of previously sold or discontinued businesses.
Refer to page 12 for details. 4




---



##### 



PIPELINES
EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES
(Excludes Intrasegment Transactions)
 2007

    

    2006

    

    Year-to-Date(In millions)
    
    
    First
    
    
    Second
    
    
    Third
    
    
    
    First
    
    
    Second
    
    
    Third
    
    
    Fourth
    
    
    
    2007
    
    
    2006Operating revenues
    
    
    $
    644
    
    
    $
    614
    
    
    $
    586
    
    
    
    $
    643
    
    
    $
    580
    
    
    $
    582
    
    
    $
    597
    
    
    
    $
    1,844
    
    
    $
    1,805Operating expensesOperation and maintenance
    
    
    
    192
    
    
    
    207
    
    
    
    222
    
    
    
    
    194
    
    
    
    201
    
    
    
    233
    
    
    
    205
    
    
    
    
    621
    
    
    
    628Depreciation, depletion and amortization
    
    
    
    94
    
    
    
    91
    
    
    
    94
    
    
    
    
    93
    
    
    
    93
    
    
    
    92
    
    
    
    92
    
    
    
    
    279
    
    
    
    278Taxes, other than income taxes
    
    
    
    34
    
    
    
    40
    
    
    
    36
    
    
    
    
    35
    
    
    
    35
    
    
    
    36
    
    
    
    30
    
    
    
    
    110
    
    
    
    106Total operating expenses
    
    
    
    320
    
    
    
    338
    
    
    
    352
    
    
    
    
    322
    
    
    
    329
    
    
    
    361
    
    
    
    327
    
    
    
    
    1,010
    
    
    
    1,012Operating income
    
    
    
    324
    
    
    
    276
    
    
    
    234
    
    
    
    
    321
    
    
    
    251
    
    
    
    221
    
    
    
    270
    
    
    
    
    834
    
    
    
    793Equity earnings and other income, net
    
    
    
    40
    
    
    
    42
    
    
    
    41
    
    
    
    
    25
    
    
    
    35
    
    
    
    32
    
    
    
    32
    
    
    
    
    123
    
    
    
    92Earnings before interest expense and income taxes (EBIT)
    
    
    $
    364
    
    
    $
    318
    
    
    $
    275
    
    
    
    $
    346
    
    
    $
    286
    
    
    $
    253
    
    
    $
    302
    
    
    
    $
    957
    
    
    $
    885Discontinued Operations-ANR(1)Operating revenues
    
    
    $
    101
    
    
    $
    -
    
    
    $
    -
    
    
    
    $
    194
    
    
    $
    125
    
    
    $
    120
    
    
    $
    142
    
    
    
    $
    101
    
    
    $
    439Operating expenses and other income
    
    
    
    (957
    )
    
    
    5
    
    
    
    -
    
    
    
    
    62
    
    
    
    76
    
    
    
    68
    
    
    
    65
    
    
    
    
    (952
    )
    
    
    206EBIT
    
    
    $
    1,058
    
    
    $
    (5
    )
    
    $
    -
    
    
    
    $
    132
    
    
    $
    49
    
    
    $
    52
    
    
    $
    77
    
    
    
    $
    1,053
    
    
    $
    233
 (1)
    
    In December 2006, we agreed to sell our ANR pipeline Company, our Michigan storage assets and our 50-percent interest in Great Lakes Gas
Transmission to TransCanada Corporation and its affiliates. We closed the transaction in February 2007 and recorded a gain of $1,007 million.
In the second quarter of 2007, we reduced the gain by $5 million.
 5




---



##### 



PIPELINES
THROUGHPUT
(Excludes Intrasegment Volumes)
(BBtu/d)
 2007

    

    2006

    

    Year-to-DateFirst
    
    
    Second
    
    
    Third
    
    
    
    First
    
    
    Second
    
    
    Third
    
    
    Fourth
    
    
    
    2007
    
    
    2006Tennessee Gas Pipeline
    
    
    
    5,084
    
    
    
    4,447
    
    
    
    4,770
    
    
    
    
    4,936
    
    
    
    4,508
    
    
    
    4,500
    
    
    
    4,201
    
    
    
    
    4,766
    
    
    
    4,646Southern Natural Gas
    
    
    
    2,339
    
    
    
    2,120
    
    
    
    2,537
    
    
    
    
    2,151
    
    
    
    2,064
    
    
    
    2,307
    
    
    
    2,146
    
    
    
    
    2,333
    
    
    
    2,175El Paso Natural Gas (1)
    
    
    
    4,226
    
    
    
    4,088
    
    
    
    4,262
    
    
    
    
    4,094
    
    
    
    4,093
    
    
    
    4,484
    
    
    
    4,343
    
    
    
    
    4,192
    
    
    
    4,225Colorado Interstate Gas (2)
    
    
    
    4,762
    
    
    
    4,779
    
    
    
    4,957
    
    
    
    
    3,807
    
    
    
    4,142
    
    
    
    4,579
    
    
    
    4,665
    
    
    
    
    4,833
    
    
    
    4,179El Paso Gas Transmission Mexico, S. de R.L.
    
    
    
    50
    
    
    
    50
    
    
    
    50
    
    
    
    
    50
    
    
    
    50
    
    
    
    50
    
    
    
    50
    
    
    
    
    50
    
    
    
    50Total
    
    
    
    16,461
    
    
    
    15,484
    
    
    
    16,576
    
    
    
    
    15,038
    
    
    
    14,857
    
    
    
    15,920
    
    
    
    15,405
    
    
    
    
    16,174
    
    
    
    15,275Equity Investments (Ownership Percentage)Citrus (50%)
    
    
    
    887
    
    
    
    979
    
    
    
    1,224
    
    
    
    
    892
    
    
    
    1,103
    
    
    
    1,148
    
    
    
    892
    
    
    
    
    1,031
    
    
    
    1,049Samalayuca & Gloria a Dios (50%)
    
    
    
    217
    
    
    
    223
    
    
    
    237
    
    
    
    
    215
    
    
    
    223
    
    
    
    227
    
    
    
    220
    
    
    
    
    229
    
    
    
    222San Fernando (50%)
    
    
    
    475
    
    
    
    475
    
    
    
    475
    
    
    
    
    475
    
    
    
    475
    
    
    
    475
    
    
    
    475
    
    
    
    
    475
    
    
    
    475Total
    
    
    
    1,579
    
    
    
    1,677
    
    
    
    1,936
    
    
    
    
    1,582
    
    
    
    1,801
    
    
    
    1,850
    
    
    
    1,587
    
    
    
    
    1,735
    
    
    
    1,746Total throughput
    
    
    
    18,040
    
    
    
    17,161
    
    
    
    18,512
    
    
    
    
    16,620
    
    
    
    16,658
    
    
    
    17,770
    
    
    
    16,992
    
    
    
    
    17,909
    
    
    
    17,021
 (1)
    
    Including Mojave Pipeline Company (MPC)(2)
    
    Including Wyoming Interstate Company (WIC) and Cheyenne Plains Gas
Pipeline (CPG)
 6




---



##### 



EXPLORATION AND PRODUCTION
EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES
(Excludes Intrasegment Transactions)
 2007

    

    2006

    

    Year-to-Date(In millions)
    
    
    First
    
    
    Second
    
    
    Third
    
    
    
    First
    
    
    Second
    
    
    Third
    
    
    Fourth
    
    
    
    2007
    
    
    2006Operating revenuesNatural gas
    
    
    $
    408
    
    
    $
    459
    
    
    $
    431
    
    
    
    $
    366
    
    
    $
    326
    
    
    $
    357
    
    
    $
    357
    
    
    
    $
    1,298
    
    
    $
    1,049Oil, condensate and natural gas liquids (NGL)
    
    
    
    88
    
    
    
    111
    
    
    
    129
    
    
    
    
    90
    
    
    
    118
    
    
    
    119
    
    
    
    103
    
    
    
    
    328
    
    
    
    327Other (1)
    
    
    
    9
    
    
    
    5
    
    
    
    15
    
    
    
    
    10
    
    
    
    18
    
    
    
    (20
    )
    
    
    10
    
    
    
    
    29
    
    
    
    8Total operating revenues
    
    
    
    505
    
    
    
    575
    
    
    
    575
    
    
    
    
    466
    
    
    
    462
    
    
    
    456
    
    
    
    470
    
    
    
    
    1,655
    
    
    
    1,384Operating expensesDepreciation, depletion and amortization
    
    
    
    170
    
    
    
    189
    
    
    
    194
    
    
    
    
    146
    
    
    
    156
    
    
    
    163
    
    
    
    180
    
    
    
    
    553
    
    
    
    465Production costs
    
    
    
    86
    
    
    
    84
    
    
    
    79
    
    
    
    
    64
    
    
    
    79
    
    
    
    92
    
    
    
    96
    
    
    
    
    249
    
    
    
    235Cost of products and services
    
    
    
    24
    
    
    
    19
    
    
    
    25
    
    
    
    
    22
    
    
    
    22
    
    
    
    23
    
    
    
    20
    
    
    
    
    68
    
    
    
    67General and administrative expenses
    
    
    
    46
    
    
    
    49
    
    
    
    46
    
    
    
    
    42
    
    
    
    41
    
    
    
    38
    
    
    
    35
    
    
    
    
    141
    
    
    
    121Other
    
    
    
    2
    
    
    
    5
    
    
    
    3
    
    
    
    
    1
    
    
    
    3
    
    
    
    2
    
    
    
    4
    
    
    
    
    10
    
    
    
    6Total operating expenses
    
    
    
    328
    
    
    
    346
    
    
    
    347
    
    
    
    
    275
    
    
    
    301
    
    
    
    318
    
    
    
    335
    
    
    
    
    1,021
    
    
    
    894Operating income
    
    
    
    177
    
    
    
    229
    
    
    
    228
    
    
    
    
    191
    
    
    
    161
    
    
    
    138
    
    
    
    135
    
    
    
    
    634
    
    
    
    490Equity earnings and other income, net
    
    
    
    2
    
    
    
    6
    
    
    
    4
    
    
    
    
    8
    
    
    
    2
    
    
    
    3
    
    
    
    2
    
    
    
    
    12
    
    
    
    13Earnings before interest expense and income taxes (EBIT)
    
    
    $
    179
    
    
    $
    235
    
    
    $
    232
    
    
    
    $
    199
    
    
    $
    163
    
    
    $
    141
    
    
    $
    137
    
    
    
    $
    646
    
    
    $
    503
 (1)
    
    Includes mark-to-market earnings / (losses) on derivatives not designated as
accounting hedges.
 7




---



##### 



EXPLORATION AND PRODUCTION
AVERAGE DAILY VOLUMES, REALIZED PRICES AND COSTS PER UNIT
 2007

    

    2006

    

    Year-to-DateFirst
    
    
    Second
    
    
    Third
    
    
    
    First
    
    
    Second
    
    
    Third
    
    
    Fourth
    
    
    
    2007
    
    
    2006Natural Gas Sales Volumes (MMcf/d)Onshore
    
    
    
    321
    
    
    
    324
    
    
    
    322
    
    
    
    
    297
    
    
    
    303
    
    
    
    308
    
    
    
    312
    
    
    
    
    322
    
    
    
    303Texas Gulf Coast
    
    
    
    162
    
    
    
    171
    
    
    
    170
    
    
    
    
    164
    
    
    
    155
    
    
    
    152
    
    
    
    150
    
    
    
    
    168
    
    
    
    157Gulf of Mexico and South Louisiana
    
    
    
    134
    
    
    
    150
    
    
    
    156
    
    
    
    
    91
    
    
    
    112
    
    
    
    138
    
    
    
    154
    
    
    
    
    147
    
    
    
    114International
    
    
    
    13
    
    
    
    12
    
    
    
    12
    
    
    
    
    26
    
    
    
    19
    
    
    
    19
    
    
    
    14
    
    
    
    
    12
    
    
    
    21Total Natural Gas Sales Volumes
    
    
    
    630
    
    
    
    657
    
    
    
    660
    
    
    
    
    578
    
    
    
    589
    
    
    
    617
    
    
    
    630
    
    
    
    
    649
    
    
    
    595Oil, Condensate and NGL Sales Volumes (MBbls/d)Onshore
    
    
    
    7
    
    
    
    7
    
    
    
    6
    
    
    
    
    6
    
    
    
    7
    
    
    
    7
    
    
    
    7
    
    
    
    
    7
    
    
    
    7Texas Gulf Coast
    
    
    
    4
    
    
    
    5
    
    
    
    6
    
    
    
    
    5
    
    
    
    5
    
    
    
    5
    
    
    
    5
    
    
    
    
    5
    
    
    
    5Gulf of Mexico and South Louisiana
    
    
    
    8
    
    
    
    8
    
    
    
    8
    
    
    
    
    7
    
    
    
    9
    
    
    
    8
    
    
    
    9
    
    
    
    
    8
    
    
    
    8International
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    
    1
    
    
    
    1Total Oil, Condensate and NGL Sales Volumes
    
    
    
    20
    
    
    
    21
    
    
    
    21
    
    
    
    
    19
    
    
    
    22
    
    
    
    21
    
    
    
    22
    
    
    
    
    21
    
    
    
    21Equivalent Sales Volumes (MMcfe/d)Onshore
    
    
    
    363
    
    
    
    368
    
    
    
    362
    
    
    
    
    334
    
    
    
    345
    
    
    
    349
    
    
    
    354
    
    
    
    
    364
    
    
    
    342Texas Gulf Coast
    
    
    
    189
    
    
    
    202
    
    
    
    205
    
    
    
    
    195
    
    
    
    187
    
    
    
    183
    
    
    
    182
    
    
    
    
    199
    
    
    
    189Gulf of Mexico and South Louisiana
    
    
    
    182
    
    
    
    202
    
    
    
    206
    
    
    
    
    133
    
    
    
    165
    
    
    
    189
    
    
    
    209
    
    
    
    
    196
    
    
    
    162International
    
    
    
    16
    
    
    
    14
    
    
    
    14
    
    
    
    
    32
    
    
    
    22
    
    
    
    23
    
    
    
    17
    
    
    
    
    15
    
    
    
    26Total Equivalent Sales Volumes
    
    
    
    750
    
    
    
    786
    
    
    
    787
    
    
    
    
    694
    
    
    
    719
    
    
    
    744
    
    
    
    762
    
    
    
    
    774
    
    
    
    719Unconsolidated Affiliate Volumes (Four Star Investment)Natural Gas (MMcf/d)
    
    
    
    54
    
    
    
    53
    
    
    
    45
    
    
    
    
    50
    
    
    
    49
    
    
    
    48
    
    
    
    52
    
    
    
    
    51
    
    
    
    49Oil, Condensate and NGL (MBbls/d)
    
    
    
    3
    
    
    
    3
    
    
    
    3
    
    
    
    
    3
    
    
    
    3
    
    
    
    3
    
    
    
    3
    
    
    
    
    3
    
    
    
    3Total Equivalent Sales Volumes (MMcfe/d)
    
    
    
    70
    
    
    
    71
    
    
    
    61
    
    
    
    
    71
    
    
    
    66
    
    
    
    66
    
    
    
    68
    
    
    
    
    67
    
    
    
    67Weighted Average Realized PricesNatural gas including hedges ($/Mcf)
    
    
    $
    7.19
    
    
    $
    7.67
    
    
    $
    7.12
    
    
    
    $
    7.03
    
    
    $
    6.08
    
    
    $
    6.30
    
    
    $
    6.15
    
    
    
    $
    7.33
    
    
    $
    6.46Natural gas excluding hedges ($/Mcf)
    
    
    $
    6.46
    
    
    $
    7.17
    
    
    $
    5.92
    
    
    
    $
    7.77
    
    
    $
    6.34
    
    
    $
    6.31
    
    
    $
    6.21
    
    
    
    $
    6.52
    
    
    $
    6.79Oil, condensate and NGL including hedges ($/Bbl)
    
    
    $
    49.32
    
    
    $
    56.87
    
    
    $
    66.26
    
    
    
    $
    51.25
    
    
    $
    60.64
    
    
    $
    60.81
    
    
    $
    50.58
    
    
    
    $
    57.71
    
    
    $
    57.81Oil, condensate and NGL excluding hedges ($/Bbl)
    
    
    $
    50.07
    
    
    $
    57.50
    
    
    $
    66.82
    
    
    
    $
    52.60
    
    
    $
    60.64
    
    
    $
    60.81
    
    
    $
    50.58
    
    
    
    $
    58.36
    
    
    $
    58.22Transportation costsNatural gas ($/Mcf)
    
    
    $
    0.31
    
    
    $
    0.24
    
    
    $
    0.29
    
    
    
    $
    0.24
    
    
    $
    0.22
    
    
    $
    0.23
    
    
    $
    0.24
    
    
    
    $
    0.28
    
    
    $
    0.23Oil, condensate and NGL ($/Bbl)
    
    
    $
    0.76
    
    
    $
    0.68
    
    
    $
    0.84
    
    
    
    $
    1.25
    
    
    $
    0.80
    
    
    $
    0.71
    
    
    $
    0.58
    
    
    
    $
    0.76
    
    
    $
    0.91Cash operating costs ($/Mcfe)Average lease operating costs
    
    
    $
    0.95
    
    
    $
    0.85
    
    
    $
    0.83
    
    
    
    $
    0.73
    
    
    $
    0.87
    
    
    $
    1.03
    
    
    $
    1.12
    
    
    
    $
    0.87
    
    
    $
    0.89Average production taxes
    
    
    
    0.32
    
    
    
    0.33
    
    
    
    0.26
    
    
    
    
    0.29
    
    
    
    0.33
    
    
    
    0.32
    
    
    
    0.24
    
    
    
    $
    0.31
    
    
    $
    0.31Total production costs
    
    
    
    1.27
    
    
    
    1.18
    
    
    
    1.09
    
    
    
    
    1.02
    
    
    
    1.20
    
    
    
    1.35
    
    
    
    1.36
    
    
    
    $
    1.18
    
    
    $
    1.20Average general and administrative expenses
    
    
    
    0.69
    
    
    
    0.68
    
    
    
    0.64
    
    
    
    
    0.67
    
    
    
    0.62
    
    
    
    0.57
    
    
    
    0.50
    
    
    
    $
    0.67
    
    
    $
    0.62Average taxes, other than production and income taxes
    
    
    
    0.03
    
    
    
    0.06
    
    
    
    0.04
    
    
    
    
    0.02
    
    
    
    0.04
    
    
    
    0.03
    
    
    
    0.05
    
    
    
    $
    0.04
    
    
    $
    0.03Total cash operating costs
    
    
    $
    1.99
    
    
    $
    1.92
    
    
    $
    1.77
    
    
    
    $
    1.71
    
    
    $
    1.86
    
    
    $
    1.95
    
    
    $
    1.91
    
    
    
    $
    1.89
    
    
    $
    1.85Unit of production depletion costs ($/Mcfe)
    
    
    $
    2.40
    
    
    $
    2.52
    
    
    $
    2.56
    
    
    
    $
    2.20
    
    
    $
    2.24
    
    
    $
    2.27
    
    
    $
    2.45
    
    
    
    $
    2.50
    
    
    $
    2.24




---



##### 



MARKETING
EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES
(Excludes Intrasegment Transactions)
 2007
    
    
    2006
    
    
    Year-to-Date(In millions)
    
    
    First
    
    Second
    
    Third
    
    
    First
    
    Second
    
    Third
    
    Fourth
    
    
    2007
    
    2006Gross margin
    
    
    $
    (135
    )
    
    $
    (16
    )
    
    $
    (9
    )
    
    
    $
    205
    
    
    $
    18
    
    
    $
    (105
    )
    
    $
    (176
    )
    
    
    $
    (160
    )
    
    $
    118Operating expensesOperation and maintenance
    
    
    
    -
    
    
    
    3
    
    
    
    4
    
    
    
    
    3
    
    
    
    9
    
    
    
    6
    
    
    
    10
    
    
    
    
    7
    
    
    
    18Depreciation, depletion and amortization
    
    
    
    1
    
    
    
    1
    
    
    
    -
    
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    
    2
    
    
    
    3Taxes, other than income taxes
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    
    1
    
    
    
    -
    
    
    
    1
    
    
    
    (1
    )
    
    
    
    -
    
    
    
    2Total operating expenses
    
    
    
    1
    
    
    
    4
    
    
    
    4
    
    
    
    
    5
    
    
    
    10
    
    
    
    8
    
    
    
    10
    
    
    
    
    9
    
    
    
    23Operating income (loss)
    
    
    
    (136
    )
    
    
    (20
    )
    
    
    (13
    )
    
    
    
    200
    
    
    
    8
    
    
    
    (113
    )
    
    
    (186
    )
    
    
    
    (169
    )
    
    
    95Other income, net
    
    
    
    1
    
    
    
    25
    
    
    
    5
    
    
    
    
    8
    
    
    
    5
    
    
    
    5
    
    
    
    2
    
    
    
    
    31
    
    
    
    18Earnings (loss) before interest expense and income taxes (EBIT)
    
    
    $
    (135
    )
    
    $
    5
    
    
    $
    (8
    )
    
    
    $
    208
    
    
    $
    13
    
    
    $
    (108
    )
    
    $
    (184
    )
    
    
    $
    (138
    )
    
    $
    113
 9




---



##### 



MARKETING
OPERATING DATA
 2007
    
    
    2006
    
    
    Year-to-Date($ in millions)
    
    
    First
    
    Second
    
    Third
    
    
    First
    
    Second
    
    Third
    
    Fourth
    
    
    2007
    
    2006Price Risk Management StatisticsForward Trading Book
    
    
    $
    (917
    )
    
    $
    (894
    )
    
    $
    (865
    )
    
    
    $
    (540
    )
    
    $
    (523
    )
    
    $
    (609
    )
    
    $
    (433
    )
    
    
    $
    (865
    )
    
    $
    (609
    )Average VAR (1)
    
    
    $
    5
    
    
    $
    2
    
    
    $
    2
    
    
    
    $
    11
    
    
    $
    9
    
    
    $
    6
    
    
    $
    4
    
    
    
    $
    3
    
    
    $
    8Physical Gas Delivery (BBtu/d)
    
    
    
    1,098
    
    
    
    1,176
    
    
    
    1,209
    
    
    
    
    1,230
    
    
    
    1,194
    
    
    
    1,252
    
    
    
    1,217
    
    
    
    
    1,161
    
    
    
    1,226Physical Power Sales (MMWh)
    
    
    
    1,312
    
    
    
    1,315
    
    
    
    1,261
    
    
    
    
    10,392
    
    
    
    7,991
    
    
    
    3,500
    
    
    
    1,957
    
    
    
    
    3,888
    
    
    
    21,883Financial Settlements (BBtue/d)
    
    
    
    1,812
    
    
    
    2,560
    
    
    
    2,137
    
    
    
    
    5,759
    
    
    
    5,517
    
    
    
    5,313
    
    
    
    5,173
    
    
    
    
    2,171
    
    
    $
    5,528Analysis of Price Risk Management Activities and Forward BookTrading
Portfolio Value at Risk (VAR) (1)One
Day VAR-95% Confidence Level at 9/30/07
    
    
    
    
    
    
    
    
    
    1Average
VAR-95% Confidence Level during 2007
    
    
    
    
    
    
    
    
    
    3High
VAR-95% Confidence Level during 2007
    
    
    
    
    
    
    
    
    
    6Low
VAR-95% Confidence Level during 2007
    
    
    
    
    
    
    
    
    
    1September 30, 2007Risk Management Assets and Liabilities
    
    
    ForwardMark to Market Value and Cash Liquidation
    
    
    TradingBook

    
    Return of Cash Collateral (2)

    Total Cash Expectations2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (42
    )
    
    
    $

    -

    
    $
    (42
    )2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (195
    )
    
    
    
    13

    
    
    (182
    )2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (182
    )
    
    
    
    13

    
    
    (169
    )2010
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (124
    )
    
    
    
    -

    
    
    (124
    )2011
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (103
    )
    
    
    
    -

    
    
    (103
    )Remainder
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (219
    )
    
    
    
    -

    
    
    (219
    )Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (865
    )
    
    
    $
    26

    
    $
    (839
    )
 (1)
    
    VAR was calculated using the historical simulation methodology at a 95% confidence level and includes all MtM based trading contracts
except for those trading contracts that relate to our E&P segments forecasted sales volumes.(2)
    
    Return of cash collateral includes margin posted against our production hedge payables that are included in Exploration and
Productions segments non-trading book.
 10




---



##### 



POWER
EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES
(Excludes Intrasegment Transactions)
 2007
    
    
    2006
    
    
    Year-to-Date(In millions)
    
    
    First
    
    Second
    
    Third
    
    
    First
    
    Second
    
    Third
    
    Fourth
    
    
    2007
    
    2006Gross margin and other revenue
    
    
    $
    (1
    )
    
    $
    (2
    )
    
    $
    (2
    )
    
    
    $
    -
    
    
    $
    -
    
    
    $
    -
    
    
    $
    (1
    )
    
    
    $
    (5
    )
    
    $
    -Operating expensesOperation and maintenance
    
    
    
    4
    
    
    
    7
    
    
    
    5
    
    
    
    
    14
    
    
    
    16
    
    
    
    14
    
    
    
    13
    
    
    
    
    16
    
    
    
    44Depreciation, depletion and amortization
    
    
    
    -
    
    
    
    -
    
    
    
    1
    
    
    
    
    -
    
    
    
    1
    
    
    
    -
    
    
    
    1
    
    
    
    
    1
    
    
    
    1Taxes, other than income taxes
    
    
    
    -
    
    
    
    -
    
    
    
    1
    
    
    
    
    1
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    
    1
    
    
    
    1Total operating expenses
    
    
    
    4
    
    
    
    7
    
    
    
    7
    
    
    
    
    15
    
    
    
    17
    
    
    
    14
    
    
    
    14
    
    
    
    
    18
    
    
    
    46Operating loss
    
    
    
    (5
    )
    
    
    (9
    )
    
    
    (9
    )
    
    
    
    (15
    )
    
    
    (17
    )
    
    
    (14
    )
    
    
    (15
    )
    
    
    
    (23
    )
    
    
    (46
    )Equity earnings and other income, net
    
    
    
    23
    
    
    
    25
    
    
    
    (58
    )
    
    
    
    18
    
    
    
    27
    
    
    
    52
    
    
    
    46
    
    
    
    
    (10
    )
    
    
    97Earnings before interest expense and income taxes (EBIT)
    
    
    $
    18
    
    
    $
    16
    
    
    $
    (67
    )
    
    
    $
    3
    
    
    $
    10
    
    
    $
    38
    
    
    $
    31
    
    
    
    $
    (33
    )
    
    $
    51EBIT by Region:Domestic Power
    
    
    $
    -
    
    
    $
    -
    
    
    $
    -
    
    
    
    $
    (6
    )
    
    $
    (3
    )
    
    $
    11
    
    
    $
    8
    
    
    
    $
    -
    
    
    $
    2International Power
    
    
    
    21
    
    
    
    22
    
    
    
    (62
    )
    
    
    
    10
    
    
    
    16
    
    
    
    20
    
    
    
    5
    
    
    
    
    (19
    )
    
    
    46Power G&A and Other
    
    
    
    (3
    )
    
    
    (6
    )
    
    
    (5
    )
    
    
    
    (1
    )
    
    
    (3
    )
    
    
    7
    
    
    
    18
    
    
    
    
    (14
    )
    
    
    3Total Power
    
    
    $
    18
    
    
    $
    16
    
    
    $
    (67
    )
    
    
    $
    3
    
    
    $
    10
    
    
    $
    38
    
    
    $
    31
    
    
    
    $
    (33
    )
    
    $
    51Discontinued operationsEBIT
    
    
    $
    -
    
    
    $
    -
    
    
    $
    -
    
    
    
    $
    (15
    )
    
    $
    4
    
    
    $
    (3
    )
    
    $
    (4
    )
    
    
    $
    -
    
    
    $
    (14
    )
 11




---



##### 



CORPORATE AND OTHER (1)
EARNINGS BEFORE INTEREST EXPENSE AND INCOME TAXES
(Excludes Intrasegment Transactions)
 2007
    
    
    2006
    
    
    Year-to-Date(In millions)
    
    
    First
    
    Second
    
    Third
    
    
    First
    
    Second
    
    Third
    
    Fourth
    
    
    2007
    
    2006Gross margin and other revenue
    
    
    $
    9
    
    
    $
    12
    
    
    $
    9
    
    
    
    $
    9
    
    
    $
    8
    
    
    $
    (2
    )
    
    $
    8
    
    
    
    $
    30
    
    
    $
    15Operating expensesOperation and maintenance
    
    
    
    26
    
    
    
    28
    
    
    
    34
    
    
    
    
    12
    
    
    
    41
    
    
    
    7
    
    
    
    39
    
    
    
    
    88
    
    
    
    60Depreciation, depletion and amortization
    
    
    
    6
    
    
    
    5
    
    
    
    4
    
    
    
    
    10
    
    
    
    5
    
    
    
    4
    
    
    
    7
    
    
    
    
    15
    
    
    
    19Taxes, other than income taxes
    
    
    
    2
    
    
    
    4
    
    
    
    (6
    )
    
    
    
    1
    
    
    
    2
    
    
    
    1
    
    
    
    3
    
    
    
    
    -
    
    
    
    4Total operating expenses
    
    
    
    34
    
    
    
    37
    
    
    
    32
    
    
    
    
    23
    
    
    
    48
    
    
    
    12
    
    
    
    49
    
    
    
    
    103
    
    
    
    83Operating loss
    
    
    
    (25
    )
    
    
    (25
    )
    
    
    (23
    )
    
    
    
    (14
    )
    
    
    (40
    )
    
    
    (14
    )
    
    
    (41
    )
    
    
    
    (73
    )
    
    
    (68
    )Loss on debt extinguishment
    
    
    
    (201
    )
    
    
    (86
    )
    
    
    -
    
    
    
    
    (6
    )
    
    
    (3
    )
    
    
    (17
    )
    
    
    -
    
    
    
    
    (287
    )
    
    
    (26
    )Equity earnings and other income, net
    
    
    
    16
    
    
    
    7
    
    
    
    74
    
    
    
    
    20
    
    
    
    9
    
    
    
    14
    
    
    
    4
    
    
    
    
    97
    
    
    
    43Earnings (losses) before interest expense and income taxes (EBIT)
    
    
    $
    (210
    )
    
    $
    (104
    )
    
    $
    51
    
    
    
    $
    -
    
    
    $
    (34
    )
    
    $
    (17
    )
    
    $
    (37
    )
    
    
    $
    (263
    )
    
    $
    (51
    )EBIT by Business Unit:Telecom
    
    
    $
    4
    
    
    $
    1
    
    
    $
    -
    
    
    
    $
    2
    
    
    $
    1
    
    
    $
    (1
    )
    
    $
    3
    
    
    
    $
    5
    
    
    $
    2Corporate
    
    
    
    (214
    )
    
    
    (105
    )
    
    
    51
    
    
    
    
    (2
    )
    
    
    (35
    )
    
    
    (16
    )
    
    
    (40
    )
    
    
    
    (268
    )
    
    
    (53
    )Total EBIT
    
    
    $
    (210
    )
    
    $
    (104
    )
    
    $
    51
    
    
    
    $
    -
    
    
    $
    (34
    )
    
    $
    (17
    )
    
    $
    (37
    )
    
    
    $
    (263
    )
    
    $
    (51
    )
 (1)
    
    Includes our corporate businesses, our telecommunications business and residual assets and liabilities of previously sold or discontinued businesses.
 12