El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Energy Corporation Signs Consent Agreement with the Federal Trade Commission Regarding Sonat Merger
Houston, Texas, September 28, 1999-El Paso Energy Corporation
(NYSE:EPG) announced today that it has signed a consent agreement with the Federal Trade
Commission (FTC) concerning its merger with Sonat Inc. The proposed agreement is expected
to be signed shortly by the Commission.
Under the consent agreement, El Paso Energy will be required after the merger
closes to divest certain assets, including its 100-percent ownership of East Tennessee
Natural Gas Company, Sonat's 100-percent ownership of Sea Robin Pipeline Company, and
Sonat's one-third interest in Destin Pipeline Company, L.L.C. El Paso Energy is
working toward completing these asset sales by the end of the first quarter 2000.
The company is still awaiting final Federal Energy Regulatory Commission (FERC)
approval of certain aspects of the merger and expects to receive that approval soon.
Subject to FTC and FERC regulatory approval, El Paso Energy and Sonat expect to close
the merger in early October.
"We are very pleased to be in the final stages of our merger process," said
William A. Wise, chairman, president and chief executive officer. "We look forward to
commencing operations as a single entity in the coming weeks and uniting the strengths of
two outstanding organizations. The new El Paso Energy, with its increased size,
scope, and competitive operations, will create exciting opportunities for our
shareholders, customers, and employees."
With over $10 billion in assets, El Paso Energy Corporation provides energy
solutions through its strategic business units: Tennessee Gas Pipeline Company,
El Paso Natural Gas Company, El Paso Field Services Company, El Paso Power
Services Company, El Paso Merchant Energy Company, and El Paso Energy
International Company. The company owns the nation's only integrated coast-to-coast
natural gas pipeline system and has operations in natural gas transmission, gas gathering
and processing, power generation, energy marketing, and international energy
infrastructure development. On June 10, the stockholders of both El Paso Energy and
Sonat Inc. overwhelmingly voted in favor of merging the two organizations. 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 companies have 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 companies make these statements and projections in good faith,
neither the companies nor their managements can guarantee that the anticipated future
results will be achieved. Reference should be made to the companies' (and their
affiliates') Securities and Exchange Commission filings for additional important
factors that may affect actual results.