EPG is engaged in the interstate and intrastate transportation, gathering and processing of natural gas; themarketing of natural gas, power and other commodities; and the development and operation of energy infrastructure facilities. For the nine months ended 9/30/00, revenues rose76% to $14.32B. Earnings applicable to Common before extra. items & acct. chg. totaled $436M vs. a loss of $64M. Results benefited from the performance of the non-regulated units.

January 7, 2001

El Paso Energy Corporation offers a wide range of energy related products and services. The company produces, processes, and stores natural gas and electric power. Shares of EPG had a great year, gaining over 144% from its low of $30.31 on January 31st to its all-time high of $74.25 on December 29th. Since then, EPG has been under pressure due to the pressure on the California energy companies, trading as low as $60.38 on Thursday. However, the stock showed some signs of life on Friday, bouncing back to an intra-day high of $64.88 on heavy volume of 4.45 million shares. We feel that EPG may be near a short-term bottom and we are now looking for a split to come with the next earnings release on January 24th or out of their next BoD meeting. EPG has enough shares to split, with 750 million share authorized and 242 million shares outstanding and the stock price is currently in split territory. Their last split came out of a BoD when the stock was trading at $66.94. Going forward, EPG has support at $62.81, the 100-dma, with additional support at the $60 mark. Resistance has come in at the 50-dma, currently at $64.81, and then $67.38, the 20-dma. Traders may consider entry points on a bounce off of $62.81 or a move above $64.81 on volume of at least 1.2 million shares by midday. We plan to set stops at $58 as downside protection.

Picked on January 7th @ $64.13
Change since picked +0.00
Stop Loss @ $58.00

January 11, 2000

Natural gas Provider El Paso Energy continues to consolidate in the $60-$65 range, as the energy sector searches for a bottom. On Thursday, shares of EPG traded as high as $64.69 before reversing directions to close at $62.25 on volume of 2.56 million shares. The stock may be stuck in this range until we get some earnings reports from the energy sector. EPG is expected to announce on January 29th at 10 AM eastern time. Until then, EPG has support at the January 4th intra-day low of $60.38 with additional support at the November 14th intra-day low of $59.13. Resistance is Tuesday’s intra-day high of $64.13 and then the 50-dma at $65.06. Traders should be looking for a bounce off of $60.38 or a move above $64.13 on midday volume of at least 1.2 million shares before starting new plays. We are keeping our stops at $58 as downside protection.

Picked on January 7th @ $64.13
Change since picked –1.88
Stop Loss @ $58.00

January 9, 2001

El Paso Energy, a leading provider of natural gas, has spent the last three days basing in the $60-$65 range. On Tuesday, shares of EPG fell to an intra-day low of $62.19 on light volume of 1.6 million shares. The stock is struggling due to its exposure to the California energy situation. Hopefully, EPG will regain its momentum as we move closer to its earnings announcement scheduled for January 24th. In the meantime, support is the January 1st intra-day low of $60.38 with stronger support at the $59.13, the November 14th intra-day low. Resistance has moved down to Tuesday’s intra-day high of $64.13 and then Monday’s intra-day high of $65.25. A bounce off of $60.38 or a move above $64.13 on midday volume greater than 1.2 million shares may be possible entry points. We are keeping our stops at $58 to limit potential losses.

Picked on January 7th @ $64.13
Change since picked –1.69
Stop Loss @ $58.00