El Paso to cut capital spending in 2009

The company, which will discuss third-quarter earnings results during a conference call on Thursday, also said that its plans include the sale of $150 million of several noncore assets by mid-2009, and obtaining potential partners on one or more pipeline expansion projects.

It said capital expenditures for this year will be reduced to $3.5 billion from $3.8 billion--next year, capital spending will total only about $3 billion.

As of Sept. 30, El Paso had $1.9 billion in liquidity, including $1.2 billion of cash and roughly $700 million available from committed bank facilities.

The company said that if access to the credit markets remains restricted, any of the asset sales or partnering opportunities it plans are delayed or not completed or if there is a further decline in commodity prices, it could make several other moves, including cutting discretionary spending further.

Shares fell 45 cents, or 4.5 percent, to close earlier at $9.52.