Highlights:

--  $0.23 adjusted diluted earnings per share (EPS) versus $0.35 in 2008.
    A sharp increase in Pipeline Group earnings was more than offset by lower
    natural gas and oil prices.
--  2009 adjusted earnings per share guidance raised to $1.15 to $1.20.
--  Third quarter 2009 reported EPS of $0.08 per diluted share versus
    $0.58 in 2008. A sharp decline in natural gas prices in the company's
    Exploration and Production (E&P) business was the major reason for lower
    reported earnings.
--  Third quarter 2009 Pipeline Group earnings before interest expense and
    taxes (EBIT) rose 17 percent from the third quarter of 2008.
--  Third quarter production averaged 732 million cubic feet equivalent
    per day (MMcfe/d), including 71 MMcfe/d of Four Star volumes. Strong
    domestic results, particularly from Haynesville Shale activities, offset
    delays in Brazil's Camarupim project.
--  The company announced that its first Eagle Ford shale well was
    successful and that it had increased its acreage position to 112,000 net
    acres.
    

"I am very pleased with our third quarter financial results and the solid execution by our Pipeline and E&P businesses," said Doug Foshee, chairman, president, and chief executive officer of El Paso Corporation. "We placed the Piceance Lateral Expansion project in service during the quarter -- on time and on budget, while at the same time advancing other projects in our committed backlog as well as new growth opportunities. In E&P, we continued to generate excellent results from our Haynesville Shale program and have ramped up our activity level to five rigs. Importantly, we are transferring our Haynesville expertise to the Eagle Ford Shale, where we are off to a great start. In summary, we are generating consistent results that will provide sustained value creation for our shareholders."

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

Financial Results
                                   Quarters Ended       Nine Months Ended
($ in millions, except per          September 30,         September 30,
 share amounts)                   2009       2008       2009       2008
                                ---------- ---------- ---------  ----------
Net income (loss) attributable
 to  El Paso Corporation (EPC)  $       67 $      445 $    (813) $      855
Preferred stock dividends                9          9        28          28
                                ---------- ---------- ---------  ----------
Net income (loss) attributable
 to EPC common stockholders     $       58 $      436 $    (841) $      827
                                ========== ========== =========  ==========
Basic per common share amounts
  Net income (loss) attributable
   to EPC common stockholders   $     0.08 $     0.63 $   (1.21) $     1.19
                                ========== ========== =========  ==========
Diluted per common share
 amounts
  Net income (loss) attributable
   to EPC common stockholders   $     0.08 $     0.58 $   (1.21) $     1.12
                                ========== ========== =========  ==========

Items Impacting Quarterly Results

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

Third Quarter 2009
($ millions, except per                      Before      After    Diluted
 share amounts)                               Tax         Tax       EPS
                                           ---------- ---------- ----------
Net income attributable to EPC common
 stockholders                                         $       58 $     0.08
Adjustments (1)
  Ceiling test charges                     $        5 $        5 $     0.01
  Change in fair value of power contracts           6          4       0.01
  Change in fair value of legacy natural
   gas contracts                                   14          9       0.01
  Change in fair value of legacy
   indemnification and other                       16         10       0.01
  Impact of E&P financial derivatives (2)         118         75       0.11
                                                                 ----------
    Adjusted EPS (3)                                             $     0.23
                                                                 ==========
(1) Assumes a 36 percent tax rate, except for international ceiling test
charges and 700 million diluted shares
(2) Consists of $87 million of gains
on financial derivatives, adjusted for $205 million of realized gains from
cash settlements
(3) Based upon 758 million fully diluted shares and includes
income impact from dilutive securities

Adjusted EPS for the quarter do not include $50 million, or $0.04 per share, of early cash settlements of oil derivative contracts that hedged July through September 2009 production that were realized in the first quarter of 2009.

Third Quarter 2008 ($ millions, except       Before     After     Diluted
  per share amounts)                          Tax        Tax        EPS
                                           ---------  ---------  ---------
Net income attributable to EPC common
 stockholders                                         $     436  $    0.58
Adjustments (1)
  Change in fair value of power contracts  $     (63) $     (40) $   (0.05)
  Change in fair value of legacy
   indemnification                                12          8       0.01
  Change in fair value of
   production-related derivatives in
   Marketing                                     (14)        (9)     (0.01)
  Impact of E&P financial derivatives (2)       (215)      (138)     (0.18)
                                                                 ---------
       Adjusted EPS (3)                                          $    0.35
                                                                 =========
(1) Assumes a 36 percent tax rate and 766 million diluted shares
(2) Consists of $158 million of gains on financial derivatives, adjusted
for $57 million
of realized losses from cash settlements
(3) Based upon 766 million fully
diluted shares and includes income impact from dilutive securities

Financial Results - Nine Months Ended September 30, 2009

For the nine months ended September 30, 2009, El Paso reported a net loss attributable to EPC common stockholders of $841 million, or $1.21 per diluted share, compared with net income of $827 million, or $1.12 per diluted share, for the first nine months of 2008. Earnings for the nine month periods of 2009 and 2008, after adjusting for the impacts of production-related derivatives, ceiling test charges and other items, were $0.95 and $1.09 per diluted share, respectively. A schedule of items affecting year-to-date results is included in the appendix of this release.

Business Unit Financial Update

                                   Quarters Ended       Nine Months Ended
Segment EBIT Results                September 30,         September 30,
($ in millions)                   2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Pipeline Group                  $     326  $     278  $   1,049  $     954
Exploration and Production             88        532     (1,536)     1,078
Marketing                             (28)        82         34       (131)
Power                                  (8)        (6)       (25)         4
Corporate and Other                   (20)        (5)         4         75
                                ---------  ---------  ---------  ---------
                                $     358  $     881  $    (474) $   1,980
                                =========  =========  =========  =========

Pipeline Group

The Pipeline Group's EBIT for the quarter ended September 30, 2009 was $326 million, compared with $278 million for the same period in 2008. Third quarter results benefited from several expansion projects that went into service throughout 2008 and 2009 including the Medicine Bow expansion, the High Plains Pipeline, the Carthage Expansion, and the Totem Gas Storage project. Third quarter 2009 results were also favorably impacted by lower O&M costs and higher volumes and realized prices on operational sales of gas not used in operations. Total throughput decreased slightly from the third quarter of 2008 as weaker demand due to slower economic conditions was mostly offset by incremental volumes from the recent expansions listed above. 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. Third quarter 2009 financial results also improved compared to third quarter 2008 due to the impact of lost natural gas and higher operations and maintenance costs in 2008 as a result of facility damage caused by Hurricanes Ike and Gustav.

During the third quarter of 2009, the Pipeline Group placed the WIC Piceance Lateral Expansion project into service -- both on time and on budget.

                                                         Quarters Ended
Pipeline Group Results                                    September 30,
($ in millions)                                         2009       2008
                                                      ---------  ---------
EBIT before adjustment for non-controlling interests  $     341  $     285
Net income attributable to non-controlling interests        (15)        (7)
                                                      ---------  ---------
EBIT                                                  $     326  $     278
DD&A                                                  $     104  $      97
Total throughput (BBtu/d) (1)                            17,757     18,905
(1) Includes proportionate share of jointly owned pipelines

Exploration and Production

The Exploration and Production segment reported $88 million of EBIT for the quarter ended September 30, 2009, compared with $532 million for the same period in 2008. The decrease was primarily due to lower realized commodity prices, lower production volumes, lower MTM gains associated with derivative hedging contracts and a $16 million impairment of casing and tubular goods inventory, partially offset by lower cash operating costs and lower DD&A expense. Third quarter 2009 production volumes averaged 732 MMcfe/d, including 71 MMcfe/d of unconsolidated affiliate volumes. Third quarter 2008 production volumes averaged 793 MMcfe/d, including 75 MMcfe/d of unconsolidated affiliate volumes. Production was lower primarily due to a sharp drop in drilling activity in response to lower natural gas and oil prices. Third quarter 2008 production volumes were negatively affected by 41 MMcfe/d as a result of hurricanes and a tropical storm. Total per-unit cash operating costs decreased to an average of $1.78 per Mcfe in third quarter 2009, compared with $1.89 per Mcfe for the same 2008 period. The decrease was primarily due to lower lease operating expenses and production taxes, partially offset by lower production volumes. Third quarter 2009 lease operating expenses were negatively impacted by $0.19 per unit due to start up costs from the Camarupim project in Brazil. Additionally, cash operating costs in the third quarter of 2008 included a $20 million, or a $0.30 per-unit reversal of an accrual of a favorable ruling on a legal matter.

Production from the first of four planned wells of the Camarupim project in Brazil began in October. That well has gross production in excess of 90 MMcfe/d, which is more than 20 MMcfe/d, net to El Paso's interest.

El Paso also announced that its first Eagle Ford shale well in La Salle County, Texas was recently drilled with a 4,000 foot horizontal lateral and completed with a 16-stage frac. The well is still cleaning up with volumes steadily increasing. The current flow rate is approximately 6.1 MMcfe/d with a flowing tubing pressure of 5,200 psi. The company has almost doubled its lease position to 112,000 net acres.