Houston, Texas, October 26, 1999-El Paso Energy Corporation (NYSE:EPG) announced today that the company has completed its restructuring following the merger with Sonat Inc. on October 25, 1999. Today's action is part of a company-wide plan to implement the optimal corporate organization for the future.

As of December 31, 1998, El Paso and Sonat employed approximately 5,500 employees. Since the announcement of the merger in March 1999, some employees have left voluntarily and approximately 261 individuals have taken early retirement packages. Additionally, as a result of today's restructuring action, 607 employees were terminated. Of the terminated employees, 246 will remain with the company until their current assignments are completed-some for several weeks, but none later than June of next year. Excluding these transition employees, El Paso Energy's workforce now consists of approximately 4,575 employees.

Employees who were not retained are eligible to receive full severance benefits including a cash payment based on years of service. In addition, active employee medical and dental coverage will be available for six months following termination of employment. After that time, active coverage is available under the COBRA plan. El Paso is also providing outplacement assistance including resume preparation, career counseling, secretarial support, and access to job databases. Employee and family assistance counseling will also be made available. The company is committed to assisting the affected employees in making a smooth transition into new career opportunities.

Staff reductions took place in all of the company's locations including Houston, El Paso, and Tyler, Texas, as well as Birmingham, Alabama, and Oklahoma City, Oklahoma. The reductions occurred across all business units and at all levels of the company.

El Paso will continue to provide support to philanthropic programs in communities along its pipeline system. In 1998, El Paso supported 167 community agencies in Houston and El Paso. Sonat has also been an active contributor to the communities in its service territory, and El Paso will continue this tradition in the future.

With over $15 billion in assets, El Paso Energy Corporation provides comprehensive energy solutions through its strategic business units: El Paso Natural Gas Company, Tennessee Gas Pipeline Company, Southern Natural Gas Company, El Paso Field Services Company, El Paso Merchant Energy Company, El Paso Production Company, and El Paso Energy International Company. The company owns North America's largest natural gas pipeline system, both in terms of throughput and miles of pipeline, and has operations in natural gas transmission, gas gathering and processing, gas and oil production, power generation, merchant energy services, and international project development. Visit El Paso Energy's web site at www.epenergy.com.

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. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that the anticipated future results will be achieved. Reference should be made to the company's (and its affiliates') Securities and Exchange Commission filings for additional important factors that may affect actual results.