Highlights:

 --  $0.25 adjusted diluted earnings per share (EPS) versus $0.39 in 2008.     A sharp increase in Pipeline Group earnings was more than offset by lower     natural gas and oil prices. --  Second quarter 2009 reported earnings of $0.11 per diluted share     versus $0.25 in 2008. --  Pipeline second quarter 2009 earnings before interest expense and     taxes (EBIT) rose 11 percent from the second quarter of 2008. --  777 million cubic feet equivalent per day (MMcfe/d) total production.     Production from the Central and Western divisions rose 6 and 5 percent,     respectively from 2008 levels. --  Exploration & Production per-unit cash operating costs were $1.68 per     thousand cubic feet equivalent (Mcfe) - a 16 percent decrease from the     second quarter of 2008.      

"El Paso generated good financial results in a difficult environment, and I am particularly pleased with the operational progress that we have made in recent months," said Doug Foshee, chairman, president, and chief executive officer of El Paso Corporation. "In our Pipeline business, we secured a partner for our Ruby Pipeline project and brought two projects into service -- both on time and on budget. In E&P, our domestic production held up very well, even though we have reduced our drilling rig activity by roughly 70 percent since the third quarter of 2008. We continue to deliver outstanding results in our Haynesville Shale and Altamont oil programs while substantially reducing our overall per-unit cash costs. Financially, we maintained strong liquidity and completed several financings, including a drop down with El Paso Pipeline Partners, L.P."

A summary of financial results for the quarters and six-month periods ended June 30, 2009 and 2008 is as follows:

 Financial Results                                        Quarters Ended     Six Months Ended ($ in millions, except per                June 30,            June 30,  share amounts)                        2009      2008      2009      2008                                      --------  --------  --------  -------- Net income (loss) attributable to  El Paso Corporation                 $     89  $    191  $   (880) $    410 Preferred stock dividends                  10        --        19        19                                      --------  --------  --------  -------- Net income (loss) attributable to  EPC common stockholders             $     79  $    191  $   (899) $    391                                      ========  ========  ========  ======== Basic per common share amounts   Net income (loss) attributable to    EPC common stockholders           $   0.11  $   0.27  $  (1.29) $   0.56                                      ========  ========  ========  ======== Diluted per common share amounts   Net income (loss) attributable to    EPC common stockholders           $   0.11  $   0.25  $  (1.29) $   0.54                                      ========  ========  ========  ======== 

Items Impacting Quarterly Results

Second quarter 2009 and 2008 net income includes the following items:

 Second Quarter 2009 ($ millions, except per share amounts)         Before    After    Diluted                                                 Tax       Tax       EPS                                               --------  --------  -------- Net income attributable to EPC common  stockholders                                           $     79  $   0.11 Adjustments(1)   Ceiling test charges                        $     12  $     12  $   0.02   Change in fair value of power contracts          (21)      (13)    (0.02)   Change in fair value of legacy natural gas    contracts                                         3         1        --   Change in fair value of legacy    indemnification                                 (25)      (16)    (0.02)   Loss on sale of notes receivable relating to    Porto Velho sale                                 22        22      0.03   Mark-to-market (MTM) impact of E&P financial    derivatives(2)                                  151        96      0.14   Effect of change in number of diluted shares                       (0.01)                                                                   --------     Adjusted EPS(3)                                               $   0.25                                                                   ======== 1 Assumes a 36 percent tax rate, except for international portion of   ceiling test charges, loss on sale of notes receivable relating to Porto   Velho sale and 699 million diluted shares 2 Consists of $55 million of MTM gains on financial derivatives, adjusted   for $206 million of realized gains from cash settlements 3 Based upon 756 million fully diluted shares and includes income impact   from dilutive securities 

Adjusted earnings per share do not include $50 million, or $0.04 per share, of early cash settlements of oil derivative contracts that hedged April though June 2009 production that were realized in the first quarter of 2009.

 Second Quarter 2008 ($ millions, except per share amounts)        Before     After    Diluted                                                 Tax       Tax       EPS                                               --------  --------  -------- Net income attributable to EPC common  stockholders                                           $    191  $   0.25 Adjustments(1)   Change in fair value of power contracts     $    105  $     67  $   0.09   Change in fair value of legacy    indemnification                                  (9)       (6)    (0.01)   Other legacy litigation adjustments              (27)      (29)    (0.04)   Change in fair value of production-related    derivatives in Marketing                         52        33      0.04   MTM impact of E&P financial derivatives(2)        61        39      0.06                                                                   --------     Adjusted EPS(3)                                               $   0.39                                                                   ======== 1 Assumes a 36 percent tax rate, except other legacy litigation   adjustments, and 761 million diluted shares 2 Consists of $153 million of MTM losses on financial derivatives, adjusted   for $92 million of realized losses from cash settlements 3 Based upon 769 million fully diluted shares and includes income impact   from dilutive securities 

Financial Results - Six Months Ended June 30, 2009

For the six months ended June 30, 2009, El Paso reported a net loss attributable to EPC common stockholders of $899 million, or $1.29 per diluted share, compared with net income of $391 million, or $0.54 per diluted share, for the first six months of 2008. Earnings for the six month periods of 2009 and 2008, after adjusting for the impacts of production-related derivatives, ceiling test charges and other items, were $0.72 and $0.74 per diluted share, respectively. A schedule of items affecting year-to-date results is listed as an appendix to this release.

Business Unit Financial Update

                                 Quarters Ended         Six Months Ended Segment EBIT Results               June 30,                June 30, ($ in millions)                2009        2008        2009        2008                             ----------  ----------  ----------  ---------- Pipeline Group              $      327  $      295  $      723  $      676 Exploration and Production          61         304      (1,624)        546 Marketing                           10        (153)         62        (213) Power                              (21)         12         (17)         10 Corporate and Other                 31          41          24          80                             ----------  ----------  ----------  ----------                             $      408  $      499  $     (832) $    1,099                             ==========  ==========  ==========  ========== 

Pipeline Group

The Pipeline Group's EBIT for the quarter ended June 30, 2009 was $327 million, compared with $295 million for the same period in 2008. Second quarter results benefited from several expansion projects that went into service throughout 2008 including the Kanda Lateral project, the Medicine Bow expansion and the High Plains Pipeline. Second quarter 2009 results were also favorably impacted by increased reservation revenues on the El Paso Natural Gas system, new contracts on El Paso's Rocky Mountain region systems and additional capacity sold in different regions of the Tennessee Gas Pipeline system. Throughput was essentially flat with the second quarter of 2008 as volumes from recent expansions were offset by weaker demand due to slower economic conditions. While the pipelines experience fluctuations in throughput, there is no material impact to near-term financial results because a significant portion of revenues are derived from demand charges under long-term contracts.

During the second quarter of 2009, the Pipeline Group placed the TGP Carthage expansion and the CIG Totem Storage project into service -- both on time and on budget.

                                                         Quarters Ended Pipeline Group Results                                     June 30, ($ in millions)                                        2009        2008                                                     ----------  ---------- EBIT before adjustment for non-controlling  interests                                          $      338  $      303 Net income attributable to non-controlling  interests                                                 (11)         (8)                                                     ----------  ---------- EBIT                                                $      327  $      295 DD&A                                                $      102  $       99 Total throughput (BBtu/d)(1)                            17,929      17,981 1 Includes proportionate share of jointly owned pipelines 

Exploration and Production

The Exploration and Production segment reported $61 million of EBIT for the quarter ended June 30, 2009, compared with $304 million for the same period in 2008. The decrease was primarily due to lower realized commodity prices and lower production volumes, partially offset by lower cash operating costs, MTM gains associated with derivative hedging contracts and lower DD&A expense. Second quarter 2009 production volumes averaged 777 MMcfe/d, including 74 MMcfe/d of unconsolidated affiliate volumes. Second quarter 2008 production volumes averaged 833 MMcfe/d, including 71 MMcfe/d of unconsolidated affiliate volumes. Production was lower due to a sharp drop in drilling activity in response to lower natural gas and oil prices. Production from the Camarupim development project offshore Brazil has not yet begun and is now expected later this month. Total per-unit cash operating costs decreased to an average of $1.68 per Mcfe in second quarter 2009, compared with $2.01 per Mcfe for the same 2008 period primarily due to lower lease operating expenses and production taxes partially offset by lower production volumes.