HOUSTON, TEXAS, July 9, 2001-El Paso Corporation (NYSE:EPG) today announced that the company expects to report second quarter earnings of between $0.77 and $0.79 per diluted share, net of non-recurring merger and other charges. This compares to the current First Call consensus earnings of $0.76 per share and second quarter 2000 earnings of $0.58 per diluted share. "Each of our businesses is performing very well, and the opportunities for future growth have never been better," said William A. Wise, chairman, president, and chief executive officer of El Paso. "Despite a weakened natural gas pricing environment, we fully expect to achieve our 2001 earnings goal of $3.30 per diluted share, net of non-recurring items, and to continue our earnings growth trajectory."

El Paso's merchant energy business continues to achieve superior growth and returns from its significant natural gas and power asset position throughout the United States. In recent months, the company has experienced strong activity in its long-term customer business, established a leading LNG merchant position in North America, and expanded our financial services business. El Paso Production Company will continue to be one of the top performing domestic independent producers by achieving 15 percent production growth in 2001 at very attractive finding and development costs. El Paso Field Services is the best-positioned midstream operator in the United States, and is accelerating its growth through an acquisition strategy using its growth master limited partnership, El Paso Energy Partners (NYSE:EPN). El Paso's pipeline group is experiencing robust throughput and has roughly $3 billion of pipeline expansions in various stages of development.

El Paso will report second quarter 2001 earnings on July 25, 2001 and will hold a conference call that morning at 9 a.m. Central Time. The public may listen to this call live by dialing (973) 628-6885 or listen to a replay through August 1, 2001 by dialing (973) 341-3080 (access code 2695872). A live Web cast of the call also will be available online through our Web site at www.elpaso.com/investor.

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 technologies, such as clean coal and liquefied natural gas, 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.