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 an Electronic Roadshow
posted on Bloomburg on Tuesday, March 14, 2000 and given as a hardcoy
presentation by H. Brent Austin and John Harrison on Wednesday, March 15,
2000 as part of a physical roadshow aimed at potential investors in the
Electron project.
[Logo] El Paso Energy
Limestone Electron Trust
Limestone Electron, Inc.
$1 Billion Senior Secured Notes Due 2003
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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 will be included in the Registration Statement on Form
S-4 filed with the SEC 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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COMBINED FINANCIAL STATISTICS
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$ Millions
Pro Forma
1999 El Paso* Coastal Combined
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Revenues $10,600 $8,200 $18,800
EBITDA 1,700 1,500 3,200
EBIT 1,100 990 2,090
Net income 420 500 920
Year-end 1999
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Total assets $16,700 $15,100 $31,800
Total debt 6,570 5,070 11,640
Preferred & minority int. 1,690 750 2,440
Equity Market Cap.* 9,143 9,884 19,027
Total enterprise value $17,403 $15,704 $33,107
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Senior Unsecured Ratings Baa2/BBB Baa2/BBB Baa2/BBB***
================================================
EBITDA/Interest 3.8x 4.6x 4.1x
Net Debt/EBITDA**** 3.6x 3.4x 3.5x
Net Debt/Book
capitalization*** 57% 52% 55%
* El Paso financials exclude merger related, ceiling test and other charges
in 1999.
** Based on 03/06/00 closing prices of $39.75 for El Paso and $46.1875 for
Coastal.
*** Ratings for both El Paso and Coastal reaffirmed after merger announcment.
****El Paso total debt, net of $445 million of excess cash.
<PAGE>
Investment Highlights
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*El Paso sponsorship
*Leading integrated energy company
*Senior unsecured ratings: Baa2/BBB
*$9 billion market capitalization ($19 billion pro forma
for Coastal)
*El Paso alignment of interests
*Transaction core to Merchant Energy growth strategy
*Economic incentives aligned with those of Investors
through performance-based management fees
Limestone Electron Trust
Limestone Electron, Inc.
-----------------------------------------
$1 Billion Senior Secured Notes Due 2003
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March 2000
