Apollo Global Management acquires EP Energy

EP Energy (the “Company”), a leading North American oil and gas producer, today announced the completion of the previously announced acquisition of the Company from its former parent El Paso Corporation by investment funds affiliated with Apollo Global Management, LLC (NYSE: APO) (collectively with its subsidiaries “Apollo”), along with Riverstone Holdings LLC, Access Industries, Inc., Korea National Oil Corporation and other investors, for approximately $7.15 billion.

EP Energy has a diverse asset base, a significant reserve base, and large positions in four key development programs. The company’s operations include programs in the Eagle Ford shale, an Altamont multipay oil program in the Uintah basin in Utah, a Wolfcamp shale oil program, and a natural gas-directed program in the Haynesville shale. During the first quarter of 2012, the Company’s production volumes rose 11 percent and its oil and condensate production rose 66 percent from the same period last year.

“We are excited about our partnership with Apollo, Riverstone, and our other investors, which we believe will enhance the value of EP Energy and extend our performance track record,” said Brent Smolik, President and Chief Executive Officer of EP Energy. “We will continue to focus on large acreage positions with low-risk, repeatable drilling opportunities that generate strong financial returns. By partnering with investors who are clearly aligned with this strategy and committed to our success, we believe EP Energy will continue to profitably find and produce the oil and natural gas that fuels our economy.”

Sam Oh, Partner at Apollo, stated, “We are delighted to partner with one of North America’s leading exploration and production franchises led by a world class team of managers. Our acquisition of EP Energy solidifies Apollo’s natural resources platform and the firm’s commitment to the North American energy sector.”

EP Energy will remain headquartered in Houston, Texas with more than 1,100 employees in Houston and across its operating areas, which are primarily focused on onshore unconventional oil and gas plays in the southern and western United States.