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
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.
The following are excerpts which address the El Paso Energy Corporation/
The Coastal Corporation merger, taken from a panel discussions with
William A. Wise at the Goldman Sachs CEO Summit held on March 27 and
28, 2000.
Telcom Opportunities Panel Questions
How significant are the opportunities for natural gas
companies?
* El Paso has a massive footprint of 70,000 miles of
right-of-way (after Coastal and GTT), trades a huge
volume of commodities, and makes decisions quickly and
decisively. We see great potential in the telecom
business.
El Paso's Telecom strategy:
* Our 70,000 miles of right-of-way (with Coastal and GTT)
will be a very valuable resource.
Convergence, Consolidation, and M&A Panel
Key Supporting Data
When merged with Coastal:
* Combined interstate transmission system of over 58,000
* Will reach all major growth areas in the U.S.
* Will access every key supply source in North America
* Will move more gas than any energy company in the world
* Will be the second largest gatherer of natural gas in
the U.S.
* Will be the third largest U.S. producer of natural gas
(behind BP Amoco and ExxonMobil)
* Will have over 5 trillion feet of proved gas equivalent
reserves
* Will control over 12,000 net megawatts of power
generation worldwide.
Gross Power in Megawatts
El Paso Coastal Combined
-------- -------- ------------
Domestic 5,420 2,040 7,460
International 7,710 1,850 9,560
Total 13,130 3,890 17,020
