El Paso Corporation Announces Further Steps to Improve Financial Flexibility

--  The company has identified specific actions that will generate $150
    million of annual operating and administrative cash savings. These
    actions include, among others, reducing internal costs and improving
    cost efficiencies from leveraging a consolidated supply chain
    organization. El Paso will realize a portion of the projected savings
    in 2009.
--  El Paso intends to sell an additional $300 million to $500 million
    of assets during 2010.
--  The company's Board of Directors has approved a reduction in the
    company's quarterly dividend from $.05 to $.01 per share. The dividend
    reduction will result in approximately $112 million of annual cash
    savings.

These measures are expected to generate the following benefits:

--  Provide incremental funding for:
    --  The Company's industry-leading pipeline backlog of growth
        opportunities.
    --  The Company's growing, low-cost, high return, repeatable
        unconventional natural gas drilling inventory.
--  Improve El Paso's overall cost structure.
--  Protect El Paso's credit profile.
--  Enhance overall shareholder returns

"Since last summer, we've acted aggressively to deal with the
challenges in capital and commodity markets, building liquidity
significantly," said Doug Foshee, chairman, president, and chief
executive officer of El Paso Corporation. "At the same time, we've
continued to fund sustainable growth opportunities in both core
businesses. Our actions to make significant reductions in our ongoing
cost structure, streamline our organization and reduce the dividend
are designed to improve the long term returns to our shareholders."

El Paso will provide detailed earnings and operational guidance for
2010 during its December 10, 2009 analyst meeting.

The $0.01 per share dividend will be payable January 4, 2010 to
shareholders of record as of the close of business on December 4,
2009. Outstanding shares of common stock entitled to receive dividends
as of September 30, 2009 were 701,264,788.

El Paso Corporation provides natural gas and related energy products
in a safe, efficient, and dependable manner. El Paso owns North
America's largest interstate natural gas pipeline system and one of
North America's largest independent natural gas producers. For more
information, visit www.elpaso.com.

Cautionary Statement Regarding Forward-Looking Statements

This release includes certain forward-looking statements and
projections. The company has 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 release, including, without limitation, our ability
to achieve the targeted costs savings from the announced
reorganization; complete planned asset sales; change management risk
associated with the reorganization; our ability to pay the dividends
declared; changes in unaudited and/or unreviewed financial
information; volatility in, and access to, the capital markets; our
ability to implement and achieve our objectives in our 2009 plan and
updated guidance, including achieving our earnings and cash flow
targets; the effects of any changes in accounting rules and guidance;
our ability to meet production volume targets in our Exploration and
Production segment; our ability to successfully identify and finance
new Midstream opportunities; our ability to comply with the covenants
in our various financing documents; our ability to obtain necessary
governmental approvals for proposed pipeline and E&P projects and our
ability to successfully construct and operate such projects; the
risks associated with recontracting of transportation commitments by
our pipelines; regulatory uncertainties associated with pipeline rate
cases; actions by the credit rating agencies; the successful close of
our financing transactions; credit and performance risk of our
lenders, trading counterparties, customers, vendors and suppliers;
changes in commodity prices and basis differentials for oil, natural
gas, and power; general economic and weather conditions in geographic
regions or markets served by the company and its affiliates, or where
operations of the company and its affiliates are located, including
the risk of a global recession and negative impact on natural gas
demand; the uncertainties associated with governmental regulation;
political and currency risks associated with international operations
of the company and its affiliates; competition; and other factors
described in the company's (and its affiliates') Securities and
Exchange Commission filings. While the company makes these statements
and projections in good faith, neither the company nor its management
can guarantee that anticipated future results will be achieved.
Reference must be made to those filings for additional important
factors that may affect actual results. The company assumes no
obligation to publicly update or revise any forward-looking statements
made herein or any other forward-looking statements made by the
company, whether as a result of new information, future events, or
otherwise.

Contacts
Investor and Public Relations
Bruce Connery
Vice President
Office: (713) 420-5855

Media Relations
Richard Wheatley
Manager
Office: (713) 420-6828

SOURCE: El Paso Corporation

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