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OMB APPROVAL
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OMB Number 3235-0104
Expires: September 30, 1998
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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)
3/13/99
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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
Sonat Inc. (Symbol NYSE: SNT)
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5 Relationship of Reporting Person 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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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 21,899,515 $27.238 (D)
right to buy) attached) attached) par value $1.00
(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 March 13, 1999, El Paso and Sonat Inc., a Delaware
corporation ("Sonat") entered into an Agreement and Plan of Merger (the
"Merger Agreement") providing for, among other things, the merger of Sonat
with and into El Paso. In connection with the Merger Agreement, El Paso and
Sonat entered into a Stock Option Agreement (the "Option Agreement"), dated
as of March 13, 1999, under which Sonat granted El Paso an option (the
"Option") to purchase up to 21,899,515 shares of common stock, par value
$1.00 per share, of Sonat (the "Sonat Shares") subject to certain
customary anti-dilution adjustments. El Paso may not exercise the Option
until the termination of the Merger Agreement pursuant to certain of the
termination provisions contained therein.
By reason of its execution of the Sonat Option Agreement, El Paso may
be deemed to have beneficial ownership of the Sonat Shares subject to the
Option and, accordingly, might be deemed to beneficially own 21,899,515 (or
approximately 16.7% of the outstanding Sonat Shares based upon the
110,047,818 Sonat Shares outstanding on March 11, 1999 as provided in the
Merger Agreement). El Paso expressly disclaims any beneficial ownership of
Sonat 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 Sonat 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
Sonat Shares subject to the Option for purposes of Sections 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 Sonat on the date hereof.
/s/ Britton White Jr. 3/23/99
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(**)Signature of Reporting Person Date
BRITTON WHITE JR.
EXECUTIVE VICE PRESIDENT
AND GENERAL COUNSEL
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.
SEC 1473 (8-92)
