HOUSTON, Jan. 6 /PRNewswire-FirstCall/ -- El Paso Corporation (NYSE: EP) announced today that it has priced an offering of approximately 8.8 million shares of common stock at a public offering price of $8.35 per share. Under the terms of El Paso's Western Energy Settlement, El Paso is required to issue approximately 26.4 million common shares at the direction of the parties of the settlement. This offering, and the approximately 17.6 million shares previously issued in November and December 2003, brings the total number of shares issued to date in connection with the Western Energy Settlement to approximately 26.4 million shares and completes El Paso's obligation to issue common shares. The offering is expected to close on or about January 8, 2004.

The proceeds from the offering will total approximately $73.4 million and will be deposited for the benefit of the settling parties as part of the company's Western Energy Settlement obligations.

The joint book running managers for the offering were J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc. Copies of the prospectuses relating to the offerings may be obtained from J.P. Morgan Securities Inc., Chase Distribution and Support Services, 1 Chase Manhattan Plaza, Floor 5B, New York, NY 10081, e-mail Addressing.Services@jpmchase.com or from Deutsche Bank Securities Inc., 60 Wall Street, Fourth Floor, New York, NY 10005.

El Paso Corporation's purpose is to provide natural gas and related energy products in a safe, efficient, dependable manner. The company owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit www.elpaso.com .

Cautionary Statement Regarding Forward-Looking Statements

This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, the ability to implement and achieve our objectives in the long-range plan; the successful implementation of the settlement related to the western energy crisis; actions by the credit rating agencies; the successful close of our financing transactions; our ability to successfully exit the energy trading business; our ability to divest of certain assets; changes in commodity prices for oil, natural gas, and power; inability to realize anticipated synergies and cost savings associated with restructurings and divestitures on a timely basis; changes in reserves estimates based upon internal and third party reserve analyses; general economic and weather conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; the uncertainties associated with the outcome of governmental investigations; the outcome of pending litigation including shareholder derivative and class actions; political and currency risks associated with international operations of the company and its affiliates especially due to the instability in Brazil and economic conditions in Mexico; difficulty in integration of the operations of previously acquired companies, competition, and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

SOURCE  El Paso Corporation
    -0-                             01/06/2004
    /CONTACT:  investor and public relations, Bruce L. Connery, Vice
President, +1-713-420-5855, or fax, +1-713-420-4417, or media relations, Mel
Scott, Director, +1-713-420-3039, or fax, +1-713-420-6341, both of El Paso
Corporation/
    /Web site:  http://www.elpaso.com /
    (EP)

CO:  El Paso Corporation; J.P. Morgan Securities Inc.; Deutsche Bank
     Securities Inc.
ST:  Texas
IN:  OIL FIN
SU:  OFR

JS-CT 
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9895 01/06/2004 08:40 EST http://www.prnewswire.com