Energy company El Paso says it's planning to separate into two publicly traded businesses by the end of the year.

The Houston company's stock jumped more than 7 percent to $20.35 in pre-market trading.

The company's board approved plans to spin off its exploration and production business. Terms were not disclosed.

After the spinoff, El Paso Corp. will include its pipeline group, its midstream group and its general and limited partner interests in El Paso Pipeline Partners LP. Doug Foshee will remain chairman and CEO.

The new publicly traded exploration and production business will be led by the unit's president, Brent Smolik, as CEO.

The separation is subject to market, regulatory and tax approvals.

Williams Cos. and Marathon Oil Corp. underwent similar separations this year.