Filed by El Paso Energy Corporation
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: El Paso Energy Corporation/The Coastal Corporation
Commission File No. 001-14365
Registration Statement No. 333-31060
The following are excerpts which address the El Paso Energy Corporation/
The Coastal Corporation merger, taken from a presentation given by
Kathleen Eisbrenner on Tuesday, March 21, 2000.
[LOGO] EL PASO MERCHANT ENERGY
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El Paso Merchant Energy
& British Gas Group plc
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March 2000
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Cautionary Statement Regarding Forward-looking Statements
This presentation 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 presentation, including, without
limitation, oil and gas prices; general economic and weather
conditions in geographic regions or markets served by El
Paso Energy and Coastal and their affiliates, or where
operations of the companies and their affiliates are
located; inability to realize anticipated synergies and cost
savings on a timely basis; difficulty in integration of
operations; and competition. While the companies make these
statements and projections in good faith, neither company
nor its management 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.
Investor Notice
Investors are urged to read the proxy statement/prospectus
which is included in the Registration Statement on Form
S-4 filed with the SEC on February 24, 2000 in connection
with the proposed merger because it will contain important
information. The proxy statement/prospectus is available
for free on the SEC's web site (www.sec.gov) and from
El Paso Energy Corporation's office of Investor Relations.
The merger between Coastal and El Paso is subject to
government approvals and is expected to close in the fourth
quarter of 2000.
In addition, the identity of the people who, under SEC
rules, may be considered "participants in the solicitation"
of El Paso Energy shareholders in connection with the
proposed merger, and a description of their interests, is
available in an SEC filing under Schedule 14A made by El
Paso Energy Corporation on January 18, 2000.
Executive Summary
______________________________
* The El Paso/Coastal merger will create the premier U.S.
domestic energy company with a strong international
base of assets
* El Paso Merchant Energy (EPME) is expanding into the
European market
* BG Group plc is the premier natural gas company in the
U.K. and a recognized leader globally
* EPME and BG Group plc should explore expanding the
current BG/El Paso relationships, which are
* Charagua Block gas reserves (Bolivia)
* Bolivia/Brazil pipeline
* Atlantic LNG (Elba Island & Cove Point) supply
agreements
[LOGO] EL PASO MERCHANT ENERGY
El Paso Energy and
the Coastal Merger
---------------------------------
<PAGE>
El Paso Energy Highlights
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* Number 286 on the 1999 Fortune 500 list of largest
United States corporations (with Coastal, number 126)
* One of Fortune's Top 100 fastest growing companies in
America for 1999
* Largest pipeline company in the United States serving
all major domestic markets (with Coastal, the largest
in the world)
* Transports over 25% of the nation's natural gas
<PAGE>
Asset Ownership
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El Paso Pro Form 2000**
* Production reserves (Tcf) 1.4 5.0
* Gathering systems (miles) 11,000 24,000
* Processing plants 10 35
* Interstate pipelines (miles) 40,000 58,000
* Number of power plants 50 68
* Domestic power (MWs)
* Gross 5,400 7,460
* Net 3,520 4,650
* International power (MWs)
* Gross 7,710 9,560
* Net 2,450 3,340
** Includes both Coastal and PG&E assets
<PAGE>
Eight Years of Accelerating
El Paso Energy Growth
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$ and Shares Outstanding in Millions
Post
Post Post Sonat Pro Forma
IPO Tenneco Merger Coastal
3/31/92 12/31/96 12/31/99E Merger
___________________________________________________________________________
Total Assets $2,081 $8,843 $16,800 $31,500
Shares Outstanding 74 111 230 499
Equity Market Value $ 844 $2,791 $ 8,520 $18,525
Total Enterprise Value $1,481 $6,182 $16,550 $32,325
