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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 by Ralph Eads,
Greg Jenkins and John Hushon given at an El Paso Energy/Coastal Transition
Reception on April 4, 2000.
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.
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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.
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[Logo] EL PASO ENERGY
El Paso Energy/Coastal
Transition Reception
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April 4, 2000
5:00 - 8:00 p.m.
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Ralph Eads
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Group Executive Vice President
Merchant Energy and Production
El Paso Energy Overview
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Relative Size of Combined Company
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$ Millions
Equity
1999E Net 1999E Market Enterprise
Income EBITDA Value Value
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Gas companies:
El Paso/Coastal $ 920 $ 3,200 $ 18,525 $ 32,325
Coastal 500 2,500 7,700 13,470
El Paso 420 1,700 8,520 16,550
Enron 920 2,965 40,343 49,422
Williams Cos. 179 1,717 15,189 23,623
Utilities:
Duke Energy 1,297 3,982 19,907 30,849
PG&E 723 3,936 8,376 19,588
Southern Co. 1,337 5,110 16,238 34,277
Source : DLJ Research, enterprise value (other than EPG and CGP)
based on 3Q99
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Relative Valuation Data
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$ Millions
Projected
Equity Market 5-year EPS Dividend 2000 P/E
Value Growth Rate Yield Multiple
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El Paso/Coastal Pro forma $ 18,525 Over 15% 2.2% 15.1x
Super Majors
Exxon Mobil $ 289,042 10% 2.1% 25.7x
Royal Dutch Shell 218,609 8 2.5 24.9
BP Amoco 183,668 5 2.5 23.6
Majors
Chevron $ 56,931 11% 2.9% 19.5x
Texaco 31,836 7 3.1 17.4
Conoco 15,750 9 3.0 16.1
Power and Gas
Enron $ 40,343 15% 1.3% 38.1x
Duke Energy 19,907 8 4.1 13.4
AES 15,995 10 0.0 24.6
Source: DLJ Research
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Srategic Benefits
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* Creates North American gas and power industry leader
* Well-positioned convergence player
* Integrated from wellhead to electron
* Scale and market reach to lead industry
* Enchances P/E multiple
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[Logo] El Paso Merchant Energy
Greg G. Jenkins
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President
El Paso Merchant Energy
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A "Step Change" in Earnings Contribution
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* Over $500 MM in NPV created during 1999
* $2 billion additional NPV will be created over next 3 years
* $250+ MM EBIT by 2002 (stand alone)
* Leverage existing platform to create large new opportunities
* El Paso/Coastal merger offers new expanded opportunities
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[Logo] El Paso Energy International
John Hushon
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President
El Paso Energy International
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El Paso/Coastal Combined International Opportunity
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* Complementary asset positions
* Fuel terminals provide strong potential synergies
* Southeast Asia
* Latin America
* Advances strategy to build regional businesses
* Enlarges pool of effective experienced developers,
analysts, operating managers and asset managers
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El Paso Energy/Coastal
Transition Reception
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April 4, 2000
5:00 - 8:00 p.m.