Mark LelandChief Financial Officer

El Paso UpdateAugust 11, 2005

the place to workthe neighbor to havethe company to own

2

Cautionary Statement Regarding Forward-looking Statements

This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 presentation, including, without limitation, our ability to implement and achieve our objectives in the long-range plan, including achieving our debt-reduction targets; changes in reserve estimates based upon internal and third party reserve analyses; our ability to meet production volume targets in our Production segment; uncertainties associated with exploration and production activities; our ability to successfully execute, manage, and integrate acquisitions; uncertainties and potential consequences associated with the outcome of governmental investigations, including, without limitation, those related to the reserve revisions and natural gas hedge transactions; outcome of litigation, including shareholder derivative and class actions related to reserve revisions and restatements; our ability to comply with the covenants in our various financing documents; our ability to obtain necessary governmental approvals for proposed pipeline 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, including the issuance of equity; our ability to successfully exit the energy trading business; our ability to close our announced asset sales on a timely basis; changes in commodity prices for oil, natural gas, and power; inability to realize anticipated synergies and cost savings associated with restructurings and divestitures on a timely basis; 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; 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.

3

Our Purpose

El Paso Corporation provides natural gas and related energy

products in a safe, efficient, and dependable manner

4

Turnaround Objectives

► Focus on 2 core businesses– Pipelines– Production

► Reduce debt► Address liquidity concerns► Simplify corporate structure► Reduce costs

5

Significant Progress in Turnaround

► Liquidity

► Net debt

► Asset sales

► Range of businesses

► Corporate structure

► Stressed

► $20.5 billion

► Long-Range Plan (LRP) goal:$3.3 billion–$3.9 billion

► Incremental goal:$1.2 billion–$1.6 billion

► Pipes, E&P, marketing & trading, petroleum, chemical, domestic & international power, midstream

► Large corporate center► 5 divisions

► Strong

► $15.9 billion*

► $4.3 billion sold under LRP

► $1.2 billion announced or closed

► Pipes, E&P, marketing (out of or exiting all other)

► Small corporate center—push functions to Bus

► 2 divisions

December 2003 Current

*As of June 30, 2005

6

►Gas consumption in the power sector will grow substantially– 200 GWs of new gas-

based generating capacity

►Domestic supply grows slowly

►Large scale LNG imports necessary 0

5

10

15

20

25

30

35

2002 2004 2006 2008 2010 2012 2014

Co

nsu

mp

tio

n a

nd

Su

pp

ly in

Tcf

U.S. Natural Gas MarketMacro Overview

Domestic supply

Demand Growth

2004–2014

Other

Residential

Commercial

Industrial

Power Generation+5.0 Tcf

+1.0 Tcf

+0.4 Tcf

+0.7 Tcf

+0.3 Tcf

Pipeline Group Overview

8

Leading Natural Gas Infrastructure

Mexico Ventures 106 miles; 2 Bcf/d

MojavePipeline

400 miles;0.4 Bcf/d

El PasoNatural Gas

11,000 miles; 6 Bcf/d

ColoradoInterstate Gas

4,000 miles; 3 Bcf/d

Wyoming Interstate600 miles; 2 Bcf/d

Cheyenne Plains Pipeline

380 miles; 0.6 Bcf/d

ANR Pipeline10,500 miles;

7 Bcf/d

Great Lakes GasTransmission (50%)2,100 miles; 3 Bcf/d

Tennessee GasPipeline

14,200 miles; 7 Bcf/d

Elba Island LNG4 Bcf

SouthernNatural Gas

8,000 miles; 3 Bcf/d

Florida GasTransmission (50%)4,800 miles; 2 Bcf/d

9

Pipeline Group Key Drivers

► Expand franchise

– New wave of opportunities (LNG, Rockies)

► Successful recontracting

► Capital and operating efficiency

► Management of rate and regulatory issues

Portfolio of Growth Projects

0.6

0.5

0.2

Seafarer Pipeline$354 MM

2008800 MMcf/d

SNG North and South System

$445 MM2002–2003–2004

699 MMcf/d

EPNG Line 2000 Power Up$136 MM

June 2004320 MMcf/d

ANR Westleg$48 MM

2004218 MMcf/d

WIC Medicine Bow Expansion

$58 MM2007–2009560 MMcf/d

EPNG Cadiz to Ehrenberg (Line 1903)

$74 MMDecember 2005

372 MMcf/d

ANR Eastleg$17 MM

2005142 MMcf/d

TGP Northeast

ConneXion New England

$102 MM2008

136 MMcf/d

TGP Northeast ConneXion

NY/NJ$24 MM

200641 MMcf/d

ANR Northleg$13 MM

2005110 MMcf/d

WIC Piceance Lateral Expansion$120 MM

December 2005333 MMcf/d

TGP Distrigas$35 MM

200772 MMcf/d

EPNGPhoenix East Valley Line

$49 MMSeptember 2005

305 MMcf/d

TGPLA Deepwater Link

$28 MMApril 2007

850 MMcf/d

ANR Wisconsin 2006 Expansion

$46 MM2006

168 MMcf/d

TGP/EPNG Sonora Project$TBD2009

TBD MMcf/d

WIC MainlineExpansion

$63 MM2007

198 MMcf/d

TGP/ANR Supply Attachment Projects

$113 MM2005-2009

TGP LPG Reynosa$44 MM (50%)

200630,000 Bbl/d

FGT Phase VII$63 MM

May 2007100 MMcf/d

TGP/ANREugene Island 371

$14 MMApril 2006

350 MMcf/d

CIG Raton Basin Expansion$91 MM

2005–2008175 MMcf/d

Cheyenne Plains$416 MM

2004-2007961 MMcf/d

SNG Elba Island Expansion

$157 MM1Q 20063.5 Bcf

SNG Cypress Expansion

$240 MM2007

220 MMcf/d

Completed ProjectsFERC Certificated

Signed PA’sFuture Projects 10

11

Pipeline Outlook

► Fundamentals remain excellent

► Growth projects driven by:

– Access to new natural gas supplies

– Market growth

► Recontracting progress has been good

► Portfolio effect of franchise is evident

► Near-term cost increases overshadowing underlying growth

Production Company Overview

13

Early Culture Shifts/Focus Items

► Basin dominance

► Inadequate pre-investment analysis

► Poor portfolio management

► Deep exploration emphasis

► Production growth through capex

► Best in basin

► Consistent and disciplined risk and reserve determination

► Comprehensive mapping with life-of-property exploitation plans

► Capital allocation to full risk spectrum

► Short-term focus on existing properties and base production. Long-term emphasis on value creation

Old New

14

Production SummaryPotiguar

Basin

Camamu/Almada Basin

EspíritoSanto Basin

Santos Basin

Brazil

► Large inventory of low-risk prospects

► Closed $179 MM East Texas acquisition in February 2005

► Medicine Bow pending

Onshore

► Closed $32 MM South Texas acquisition in January

► Developing lower-risk inventory

Texas Gulf Coast

► UnoPaso acquisition performing well► Substantial exploration potential

Brazil

► Realigned drilling program yields results—West Cameron 75 and 62

Gulf of Mexico

15

Present Value Ratio (PVR):

After-tax PV of future cash flows discontinued at 12%

Total Investment

Adjust program based on monthly results

Capital Management SystemManaging Our Drilling Program

Monitor pre/post-drill assumptions and results

Monthly post-drill analysis

Pre-drill evaluation

16

Production Profile

0

200

400

600

800

1000

1200

1400

1600

Jan

-03

Feb

-03

Mar

-03

Ap

r-03

May

-03

Jun

-03

Jul-

03A

ug

-03

Sep

-03

Oct

-03

No

v-03

Dec

-03

Jan

-04

Feb

-04

Mar

-04

Ap

r-04

May

-04

Jun

-04

Jul-

04A

ug

-04

Sep

-04

Oct

-04

No

v-04

Dec

-04

Jan

-05

Feb

-05

Mar

-05

Ap

r-05

May

-05

Jun

-05

Sale of Weatherford and San Juan

Canada sale

MMcfe/d

17

Stabilizing E&P

40%28%25%

47%

20%26%

35%34%

25%27%34%

41%

8%7%3%

1Q2004 2004 2005E 2005 Exit

Onshore TGC GOM International

901814

Draft

7024

810+860–900

Equity Equity

Average Daily Production(MMcfe/d)

18

Stabilizing E&P

231

1,282 1,360 1,324

224

180

143

140

88

45

63

75

$0

$400

$800

$1,200

$1,600

$2,000

Capex EBITDA Capex EBITDA

Onshore GOM TGC Int'l Other

2004 2005

1Cash basis less discontinued ops less cash received from UnoPaso acquisition21H05 annualized

$749

$1,282

$1,800

$1,324

$ Millions

21

Operations fund base capital

Acquisition$1,100

19

Stabilizing E&PR/P has lengthened…

6.1 7.2 7.4R/P Ratio:

…and should lengthen further as Onshore assets are developed

1Pro Forma represents 2005 acquired reserves at time of purchase plus production from 1/1/05 to purchase date; production is full year 2004

2003 2004 Pro Forma 2004E

Year-end reserves:

2,520 Bcfe

Year-end reserves:

2,184 Bcfe

Year-end reserves:

2,706 Bcfe

Full-year production:

410 Bcfe

Full-year production:

303 Bcfe

Full-year production:

369 Bcfe

1

20

Governance Update

► Continued Board evolution► 8 of 12 new since January 2003► 7 of 8 have significant upstream experience► 2 of 8 qualify as financial experts► Guidelines exemplify good corporate governance

– No staggered board– No pill– 11 of 12 board members are independent– Separate Chairman and CEO positions

21

Summary

► Will build upon recent success► 2005 measured by:

– Positioning company to generate meaningful free cash flow

– Completing turnaround of production business

– Meeting $15 billion net debt target– Achieving further cost reduction

Appendix

Asset Sales

Cedar Brakes I & IIEnterprise investmentS. Louisiana processing plantsOther

Field Services (pending)Korean power plantLakeside telecom facilityAsian power plants (pending)Chinese power plant (pending)Montreal paraxylene plantLondon power plantTurbine sales

Remaining Incremental Assets:

► Domestic merchant plants► Midland Cogeneration interest► Mohawk River Funding II

► Asian power plant► Central American power plants► Midstream plant

$ 944257556

$650

$ 50028414010971744716

$ 1,240

$575–––

$575

Completed1/1/05 to 3/15/05($ Millions)

IncrementalAsset Sales

Non-recourseDebt

Incremental $1.2 billion to $1.6 billion expected proceeds in 2005/200623

Mark LelandChief Financial Officer

El Paso UpdateAugust 11, 2005

the place to workthe neighbor to havethe company to own