EXHIBIT 99.1
EL PASO ENERGY CORPORATION RECEIVES APPROVAL
FROM THE FEDERAL ENERGY REGULATORY COMMISSION
TO PROCEED WITH COASTAL MERGER
HOUSTON, TEXAS, JULY 27, 2000-El Paso Energy Corporation (NYSE:EPG)
announced that the Federal Energy Regulatory Commission (FERC) approved El
Paso Energy's $20-billion combination with The Coastal Corporation. In the
July 26 order, the FERC concluded that the transaction is "consistent with
the public interest" and will not adversely affect competition, rates, or
regulation. The FERC also said they would authorize the merger without
further investigation or condition because "the merger raises no
competitive concerns."
"FERC performed this in-depth analysis of the merger's competitive
aspects in an expeditious manner, and we are pleased to have received its
approval without condition," said William A. Wise, president and chief
executive officer of El Paso Energy. "This approval brings us one step
closer to creating a strong, dynamic company that can better serve our
customers in the converging natural gas and power generation markets."
El Paso Energy also is cooperating fully with the Federal Trade
Commission (FTC) to obtain its approval for the merger. The company
anticipates that FTC approval will be received and closing of the merger
will occur in the fourth quarter of 2000.
With over $19 billion in assets, El Paso Energy Corporation provides
comprehensive energy solutions through its strategic business units:
Tennessee Gas Pipeline Company, El Paso Natural Gas Company, Southern
Natural Gas Company, El Paso Merchant Energy Company, El Paso Energy
International Company, El Paso Field Services Company, and El Paso
Production Company. The company owns North America's largest natural gas
pipeline system, both in terms of throughput and miles of pipeline, and has
operations in natural gas transmission, merchant energy services, power
generation, international project development, gas gathering and
processing, and gas and oil production. On May 5, the stockholders of both
El Paso Energy and The Coastal Corporation overwhelmingly voted in favor of
merging the two organizations. The combined company will have assets of
$35 billion and be one of the world's leading integrated energy companies.
The merger is expected to close in the fourth quarter of this year,
concurrent with the completion of regulatory reviews. Visit El Paso
Energy's web site at www.epenergy.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
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.
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Contact:
Public Relations Investor Relations
Norma F. Dunn Bruce L. Connery
Senior Vice President Vice President
Office: (713) 420-3750 Office: (713) 420-5855
Fax: (713) 420-3632 Fax: (713) 420-4417
