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OMB APPROVAL
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OMB Number 3235-0104
Expires: December 31, 2001
Estimated average burden
hours per response ....... 0.5
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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person
El Paso Energy Corporation
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(Last) (First) (Middle)
El Paso Energy Building
1001 Louisiana Street
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(Street)
Houston, Texas 77002
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(City) (State) (Zip)
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2. Date of Event Requiring Statement (Month/Day/Year)
1/17/00
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3. IRS or Social Security Number of Reporting Person (Voluntary)
76-0568816
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4. Issuer Name and Ticker or Trading Symbol
The Coastal Corporation (Symbol NYSE: CGP)
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5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
[ ] Director [ X ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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6. If Amendment, Date of Original (Month/Day/Year)
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7. Individual or Joint/Group Filing
[ X ] Form Filed by One Reporting Person
[ ] Form Filed by More than One Reporting Person
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Table I -- Non-Derivative Securities Beneficially Owned
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<TABLE>
<CAPTION>
3. Ownership Form:
2. Amount of Securities Direct (D) or
1. Title of Security Beneficially Owned Indirect (I) 4. Nature of Indirect Beneficial Ownership
(Instr. 4) (Instr. 4) (Instr. 5) (Instr. 5)
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<S> <C> <C> <C>
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(Print or Type Responses)
FORM 3 (continued)
Table II -- Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<TABLE>
<CAPTION>
5. Owner-
3. Title and Amount of Securities ship
Underlying Derivative Security Form of
2. Date Exercisable (Instr. 4) Derivative
and Expiration Date --------------------------------- 4. Conver- Security:
(Month/Day/Year) Amount sion or Direct 6. Nature of
---------------------- or Exercise (D) or Indirect
1. Title of Derivative Date Expira- Number Price of Indirect Beneficial
Security Exer- tion of Derivative (I) Ownership
(Instr. 4) cisable Date Title Shares Security (Instr. 5) (Instr. 5)
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<S> <C> <C> <C> <C> <C> <C> <C>
Option (contingent (see (see Common Stock, par 31,834,515 $34.14375 (D)
right to buy) attached) attached) value $.33 1/3
(see attached) per share
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</TABLE>
Explanation of Responses:
This Initial Statement of Beneficial Ownership on Form 3 (this "Form
3") is being filed by El Paso Energy Corporation, a Delaware corporation
("El Paso"). On January 17, 2000, El Paso and The Coastal Corporation, a
Delaware corporation ("Coastal") and El Paso Merger Company, a Delaware
Corporation ("Merger Sub") entered into an Agreement and Plan of Merger
(the "Merger Agreement") providing for, among other things, the merger of
Merger Sub with and into Coastal. In connection with the Merger Agreement,
El Paso and Coastal entered into a Stock Option Agreement (the "Option
Agreement"), dated as of January 17, 2000, under which Coastal granted El
Paso an option (the "Option") to purchase up to 31,834,515 shares of common
stock, par value $.33 1/3 per share, of Coastal (the "Coastal Shares")
subject to certain customary anti-dilution adjustments. El Paso may not
exercise the Option until the termination of the Merger Agreement and then
only under the circumstances set forth.
By reason of its execution of the Coastal Option Agreement, El Paso
may be deemed to have beneficial ownership of the Coastal Shares subject to
the Option and, accordingly, might be deemed to beneficially own 31,834,515
(or approximately 12.99% of the outstanding Coastal Shares based upon the
213,309,958 Coastal Shares outstanding at the close of business on January
14, 2000 as provided in the Merger Agreement). El Paso expressly disclaims
any beneficial ownership of Coastal Shares which are purchasable by El Paso
upon exercise of the Option, on the grounds that the Option is not
presently exerciseable and only becomes exerciseable upon the occurrence of
the events referred to above. If the Option were exercised, El Paso would
have the sole right to vote and to dispose of the Coastal Shares issued as
a result of such exercise.
Neither the filing of this Form 3 nor any of its contents shall be
deemed to constitute an admission that El Paso is the beneficial owner of
Coastal Shares subject to the Option for purposes of Section 13(d) or 16
of the Securities Exchange Act of 1934, as amended, or for any other
purpose and such beneficial ownership is expressly disclaimed. The
foregoing summary of the Option Agreement is qualified in its entirety by
reference to such agreement, which has been filed as an exhibit to El
Paso's Schedule 13D filed with respect to Coastal on the date hereof.
/s/ H. Brent Austin 1/26/00
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(**)Signature of Reporting Person Date
H. BRENT AUSTIN
EXECUTIVE VICE PRESIDENT
AND CHIEF FINANCIAL OFFICER
EL PASO ENERGY CORPORATION
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedure.
