HOUSTON, TEXAS, August 22, 2001—El Paso Corporation (NYSE:EPG) today provided updated percentages for the amount of natural gas production that it has hedged through 2003. For the months of September through December 2001, approximately 75 percent of projected natural gas production is hedged at a NYMEX price of $3.85 per thousand cubic feet (Mcf), or $3.63 per million British thermal units (MMBtu). For 2002, approximately 60 percent of natural gas production is hedged at a NYMEX price of $4.19 per Mcf, or $3.95 per MMBtu. For 2003, approximately 35 percent of natural gas production is hedged at a NYMEX price of $4.19 per Mcf, or $3.95 per MMBtu. The company expects that its realized price for natural gas will be approximately $0.30 less than the NYMEX per Mcf price due to transportation costs and regional price differentials.

The company estimates that a $0.10 change in the annual spot price for natural gas in 2002 will result in only an approximate $0.02 per share change to earnings. The company remains comfortable with existing earnings guidance of $3.30 per share for 2001 and 15 percent earnings per share growth for 2002.

El Paso Corporation is committed to meeting energy needs throughout North America and the world with operations that span the energy value chain from wellhead to electron. The company is focused on speeding the development of new energy sources to address critical energy shortages across the globe. Visit El Paso at 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.