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 18, 2001

Electricity and natural gas provider El Paso Energy has been selling off due to its exposure to the California power situation. On Thursday, shares of EPG fell to an intra-day low of $58.13 before bouncing back to a close of $58.63 on volume of 6.01 million shares, three times the daily average. Unfortunately, the weakness may continue into the earnings announcement on January 29th during market hours. For now, support is Thursday’s intra-day low of $58.13 with stronger support at the October 27th intra-day low of $58. Resistance has come down to the January 5th intra-day low of $60.50 and then $62.75, Thursday’s intra-day high. Traders may consider starting new plays on a bounce off of $58.13 or a move above $60.50 on volume greater than 1.2 million shares by midday. We are keeping our stops at $58 as downside protection.

Picked on January 7th @ $64.13
Change since picked –5.50
Stop Loss @ $58.00

January 16, 2000

El Paso Energy, a distributor of electricity and natural gas, continues to trade in the $60-$65 range as investors await earnings announcements from the energy sector. On Tuesday, shares of EPG closed at their intra-day high of $64.13 on volume of 2.73 million shares. Although the stock is still in a trading range, it did close above the 5-dma for the first time since December 29th and it could be ready to break out as we approach EPG’s earnings announcement on January 29th during market hours. Until then, support is the 5-dma at $62.88 with additional support at the January 12th intra-day low of $61.13. Resistance has moved up to the January 8th intra-day high of $65.25 and then the 50-dma at $66.61. Traders should be looking for a bounce off of $62.88 or a move above $65.25 on midday volume of at least 1.2 million shares before starting new plays. Our stops remain steady at $58.

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

January 14, 2001

El Paso Energy has been consolidating in the $60-$65 range over the past six sessions. On Friday, shares of the electricity and natural gas distributor hit an intra-day low of $61.13 before bouncing back to a close at $62.81 on volume of 2.04 million shares. The stock has now made three consecutive lower lows and may need to test the $60 mark before it shakes the selling pressure. Hopefully, the stock will get a lift as we move closer to their earnings release, expected on January 29th during market hours. We are also looking for a split announcement with the earnings release because EPG is currently trading within historic split range. The company also has enough shares for a split, with 750 million shares authorized and 242 million shares outstanding. In the meantime, support is at the January 4th intra-day low of $60.38 with stronger support at the November 14th intra-day low of $59.13. Resistance remains steady at Tuesday’s intra-day high of $64.13 and then the 50-dma at $65.06. Traders may consider opening new positions on a bounce off of $60.38 or a move above $64.13 on volume greater than 1.2 million shares by midday. We are leaving our stops at $58 to limit losses.

Picked on January 7th @ $64.13
Change since picked –1.31
Stop Loss @ $58.00