NEW YORK (

TheStreet

) -- Shares of

El Paso

(EP)

rose Tuesday on the company's announcement that it plans to split into two publicly traded businesses.

The Houston energy company said it will split its exploration and production company from its pipeline business.

El Paso shares were rising Tuesday after the company said it would split in two.

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"With the completion of what was an $8 billion pipeline backlog, the elevation of our E&P business to one of the top independent producers ... and the accelerated improvement of our balance sheet, we are ready to take this important step," CEO Doug Foshee said in a press release. Foshee will remain CEO of El Paso Corp., the pipeline business, following the split.

The company also raised its full-year adjusted earnings outlook to $1 to $1.10 a share. It previously expected to earn 90 cents to $1.05 a share.

El Paso said it was boosting its guidance because its results to date have exceeded expectations.

The stock was rising 7.1%, or $1.35, to $20.33 late Tuesday morning.

--

Written by Joe Deaux in New York.

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