HOUSTON, TEXAS, April 1, 2002—El Paso Corporation (NYSE:EP) today reported that it has closed oil and gas property sales totaling $525 million in the first quarter of 2002. The sales cover 527 billion cubic feet of natural gas proved reserves located in East Texas and South Texas. On a natural gas equivalent basis, the sales reflect consideration of $1.00 per thousand cubic feet (Mcfe), but when the future development costs of proved undeveloped reserves are considered, the purchase price is $1.40 per Mcfe.

"These transactions are another important step in implementing the balance sheet enhancement plan that we announced in December of last year," said William A. Wise, chairman, president and chief executive officer of El Paso. "We expect to close the $750 million sale of midstream assets to El Paso Energy Partners (NYSE:EPN) in the first week of April, and we are in advanced discussions for the sale of another $500 million of oil and gas properties. Given the excellent progress to date, we are on track to complete the vast majority of our $2.25 billion of assets sales by mid year."

The El Paso Corporation model-strong in assets, market expertise, valuation skills, and risk discipline-has proven itself year after year, resulting in a company with both financial strength and a reputation for integrity. El Paso has core businesses in natural gas production, gathering and processing, and transmission, as well as in international project development, energy financing, power generation, liquefied natural gas transport and receiving, and merchant energy services. The company is committed to developing new energy sources and technology to supply energy to communities around the world. For more information, please visit www.elpaso.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.