Regulatory News

* El Paso shares up 5.6 pct

* El Paso says it is making good progress so far in 2010 (Adds company comment, updates share price)

By Anna Driver

HOUSTON, April 23 (Reuters) - Shares of El Paso Corp (EP.N) rose to their highest level in more than a year on Friday, boosted by expectations that the natural gas exploration and pipeline company might consider a restructuring plan similar to that of a competitor, an analyst said.

On Wednesday, Questar Corp (STR.N) said it might spin off its exploration and production unit to focus on natural gas distribution and pipelines [ID:nN21237279].

Questar's plan "may prompt a review of similar action by El Paso in the future," BMO Capital Markets Corp analyst Carl Kirst said.

Still, Kirst does not expect El Paso to take action in the the next 12 months because the company first has a few hurdles to clear.

"Right now management is very focused on execution," Kirst said. "They have to show their exploration and production operation can repeat a very successful 2009 and they have to get this very large Ruby Pipeline in service next year."

After that, the company could consider some type of restructuring that would allow the company to unlock the value of its assets, which are currently undervalued, Kirst said.

"We've given every indication that if it is the right thing to do, we would act upon it," Bruce Connery, an El Paso spokesman said.

"There have been a lot of items that investors have focused on. As we keep making progress, that clearly starts to work against the discount in our stock," the executive said.

El Paso is in the midst of a plan to boost shareholder returns and liquidity by selling assets, cutting costs and growing its exploration business.

Shares of El Paso rose 69 cents, or 5.9 percent, to $12.39 in afternoon trading on the New York Stock Exchange. Earlier in the session, the Houston company's stock touched $12.41, its highest level since October 2008. (Reporting by Anna Driver in Houston; editing by Gerald E. McCormick and Derek Caney)