HOUSTON, TX, Nov. 3, 2009 (Marketwire) --

HOUSTON, TX -- (Marketwire) -- 11/03/09 -- El Paso Corporation (NYSE: EP) is today announcing a series of actions designed to further improve the company's financial flexibility to fund its core businesses:

--  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.