Doug Foshee, President and CEO of El Paso Corporation, presented at an annual investor conference on September 20, 2005. He summarized that El Paso has made significant progress in turning the company around, reducing net debt from $20.5 billion to $15.9 billion through asset sales and debt reduction. Production has stabilized at around 900 million cubic feet equivalent per day, and the company is well positioned with natural gas assets. El Paso expects substantial leverage to higher natural gas prices in 2006, with every $1 increase in gas prices above $5 providing around $200 million in additional cash flow.

1. Doug Foshee
President and Chief Executive Officer
Banc of America
Annual Investor Conference
September 20, 2005
the place to work
the neighbor to have
the 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; our ability to obtain necessary
governmental approvals for proposed pipeline projects and our ability to successfully
construct and operate such projects; 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; our ability to close our
announced asset sales on a timely basis; changes in commodity prices 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; 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.
2

3. Our Purpose
El Paso Corporation provides
natural gas and related energy
products in a safe, efficient, and
dependable manner
3

4. El Paso Overview
Premier natural gas pipeline franchise
►
One of largest independent producers
►
– Turnaround almost complete
Significant leverage to favorable commodity
►
fundamentals
Excellent progress on asset sales/debt
►
reduction
4

5. Significant Progress in Turnaround
December 2003 Current
Liquidity Stressed Strong
► ► ►
Net debt $20.5 billion $15.9 billion*
► ► ►
Asset sales Long-Range Plan (LRP) goal: $4.3 billion sold under LRP
► ► ►
$3.3 billion–$3.9 billion
Incremental goal: $1.4 billion announced or
► ►
$1.2 billion–$1.6 billion closed
Pipes, E&P, marketing & Pipes, E&P, marketing (out of
► ►
Range of businesses
►
trading, petroleum, chemical, or exiting all other)
domestic & international
power, midstream, others
Large corporate center Small corporate center—push
► ►
Corporate structure
►
functions to businesses
5 divisions
►
2 divisions
►
*As of June 30, 2005
5

6. U.S. Natural Gas Market
Macro Overview
Consumption & Supply in Tcf
Demand
Growth
Domestic
► Gas consumption in the 2004–2014
35
supply
power sector will grow
30
substantially
+5.0 Tcf
25
– 200 GWs of gas-fired Power Generation
generating capacity built
20
since 2000
+1.0 Tcf
Industrial
► Domestic supply grows 15
slowly +0.4 Tcf
Commercial
10
► More than $20 billion in +0.7 Tcf
Residential
5
infrastructure required
Other +0.3 Tcf
over next 5 Years 0
2002 2004 2006 2008 2010 2012 2014
Source: CERA and FERC
6

7. Pipeline Group Overview

8. Leading Natural Gas Infrastructure
Key Statistics
► 58,000 miles
► 1/3 of daily U.S. throughput
► 40% of U.S. growth capital
in 2005*
Distinguishing Features
► Unmatched connectivity
Elba
► Superior market presence
Island
► Favorable recontracting
position
► Outstanding growth potential
*Source: Energy Information Association
8

9. Connectivity Strength: Market
Catoosa Co.
Ringgold
75 SNG delivery
75 SNG delivery 49 SNG delivery
points to 49 SNG delivery
Calhoun
points to points to
Chatsworth
Alagasco points to
Alagasco AGL
Rome
AGL
Gadsden Cedartown/
Marietta
Lincoln Rockmart
Dallas
Jasper Ben Hill
Oakman
Pell City
Augusta
Carrolton
Anniston
Warrenton
Birmingham South Atlanta
Yates
Talladega
Blythe
Newnan
Oak Grove
Reform
Bass Junction
Intensive
Tuscaloosa
Sandersville
Thomaston
Greene Co.
Centerville Macon
Opelika Danville
S. Thomaston
Phenix City
Eclectic Dexter
Connections Springfield/
Demopolis
Laurens County Guyton
(South)
Tuskegee
Savannah
Selma
Uniontown Montgomery
Citygates
►
Plants
► SNG
SNG Delivery Points/Areas
9

10. Connectivity Strength: Supply
► Strong
presence
► Hub-to-hub ANR
service FGT
SNG
TGP
► Diversity
Most GOM take away capacity
10

11. El Paso’s Pipelines Unmatched for
Growth Projects
Why is this good?
Superior presence
►
– Market
– Supply basins
Growth Capital
Commitment*
$586 MM 2004
►
+ $450 MM 2005
►
± $450 MM 2006–2008
►
*In addition to ± $450 MM/year maintenance capex
11

12. Production Company Overview

13. Early Culture Shifts/Focus Items
Old New
Basin dominance Best in basin
► ►
Inadequate pre-investment Consistent and disciplined risk
► ►
analysis and reserve determination
Poor portfolio management Comprehensive mapping with
► ►
life-of-property exploitation
plans
Deep exploration emphasis Capital allocation to full risk
► ►
spectrum
Production growth through Short-term focus on existing
► ►
capex properties and base
production. Long-term
emphasis on value creation
13

14. El Paso Production
Well Positioned in Key U.S. Natural Gas Basins
14

15. Production Company Overview
Average Daily Production1
(MMcfe/d)
Production stabilized
►
860–9002
901
810+2
814
Creating value at
► 70 Equity
24 Equity
$4.75/MMBtu
GOM, Onshore, and
►
Brazil performing well
Texas Gulf Coast
►
developing low-risk
inventory
1Q 2004 2004 2005E 2005 Exit
1Includes volumes attributable to Four Star equity
2Assumes no effects from Hurricane Katrina
15

16. Dramatic Shift Towards
Onshore Production
Key takeaways
► Onshore production almost
doubles as percentage of total
International
► Business more predictable
8%
► R/P goes from 6.2 to 7.4
Onshore
25% GOM
GOM Onshore
How was this accomplished?
25%
41% 47%
TX Gulf
► Shifted capital towards Onshore
TX Gulf
Coast
mid-2004
Coast
34% 20%
► Successful drilling program
► Medicine Bow accelerates
1Q 2004 2005E Exit
process
– 80% proved reserves in core
Onshore areas
16

17. Texas Gulf Coast
Turnaround Well Underway
Problems Response
Focused on deep, New management
► ►
expensive wells Changed risk profile
►
Generally 100% working
► Success measured by
►
interest PVR
Success defined by high
► Building inventory of
►
flow rates low-risk prospects
Wheels came off in 2003
► Leveraging large
►
acreage position
Situation analogous to successful GOM turnaround
17

18. Creating More Value in
Shallower Objectives
Historical focus was
►
Frio
lower Vicksburg
► Well cost: $1.3 MM
► Reserves: 1.1 Bcfe
► F&D costs: ≈ $1.18 Mcfe
Multi-pay
►
environment offers
8,500'
Upper Vicksburg
attractive, shallower
► Well cost: $1.7 MM
► Reserves: 2.0 Bcfe options
► F&D costs: ≈ $0.85 Mcfe
12,000'
PVR increases from
►
Lower Vicksburg
1.2 to 2.1
► Well cost: $7.6 MM
► Reserves: 5.3 Bcfe
► F&D costs: ≈ $1.43 Mcfe
19,000'
Note: Estimates based on per Sand Resistivity (HC Indicator)
well data for a South Texas well
18

19. Good Progress in Texas Gulf Coast
Monte Christo Field
Hidalgo
Early returns very good
►
El Paso has ≈ 200,000 net acre
►
position to evaluate/leverage
Expect solid inventory for
►
Operated wells
2006 capital program
2005 wells
Jeffress/Samano Field 2006 wells
EP leases
Initial
Capex Production
($ MM) (MMcf/d)
Field Formation
Hamman Ranch 361 Monte Christo U. Vicksburg $1.0 6.1
Hamman Ranch 471 Monte Christo U. Vicksburg $0.9 9.5
Hamman Ranch 601 Monte Christo L. Vicksburg $2.3 11.0
Salinas M 03 Jeffress L. Vicksburg $2.1 3.4
1.22
Hamman Ranch 71 Monte Christo U. Vicksburg $1.8
Renger 2 Speaks L. Wilcox $5.3 15.0
Saga 1 La Copita U. Vicksburg $3.0 Completing;
sets up 3 offsets
1Recompletions
2Testing continuing
19

20. Production Company Summary
Very confident in completing E&P turnaround
►
Program creating value at plan prices
►
Business becoming more predictable
►
– More onshore production
– Longer R/P
Strong outlook for 2006
►
20

21. Outlook for 2006

22. Substantial Leverage to
Natural Gas & Oil Prices
Potential 2006 Impact
Assumed Gas
$5 $6 $7 $8 $9 $10
Price $/MMBtu
$2,891
$2,649
$2,377
$10 gas price
$2,105
$1,803 $1,953
implies $670 MM
incremental cash
$ MM
Revenue vs. $5
Current
Cash Loss from
Strip
($90) ($173)
Legacy Hedges ($257) ($341) ($424) ($508)
Assumptions: 330 Bcfe*; 10% basis differential and oil priced at 6x gas
*For illustrative purposes: Will provide 2006 guidance in January; assumes high end
of 2005 exit rate
22

23. Cost Reductions Continue
Greenway lease’s approximately $50 MM annual costs
►
ending in 2007
Political risk insurance cost which peaked at more than
►
$25 MM per year essentially eliminated with sale of
foreign assets
D&O insurance annual expense of $29 MM reduced by
►
nearly one-half after 2005
Outside legal costs of approximately $55 MM per year
►
expected to come down in 2006 and down sharply in 2007
Accounting and audit annual costs of $45 MM to be trimmed
►
by one-third after 2005
Trading costs reduce as book continues to shrink
►
23

24. Summary
El Paso has made rapid progress
►
Pipelines performing great; outlook great
►
Production turnaround complete by year end
►
Shaping up for a great 2006
►
24

25. Appendix

26. Production Related
Derivative Schedule
2005 2006 2007 2008 2009-2012
Average Average Average Average Average
Notional Hedge Average Notional Hedge Average Notional Hedge Notional Hedge Notional Hedge
Natural Gas Volume Price Cash Price Volume Price Cash Price Volume Price Volume Price Volume Price
(Bcf) ($/MMBtu) ($/MMBtu) (Bcf) ($/MMBtu) ($/MMBtu) (Bcf) ($/MMBtu) (Bcf) ($/MMBtu) (Bcf) ($/MMBtu)
Designated
Fixed Price - Legacy 1 32.60 $6.79 $3.64 83.7 $6.36 $3.93 4.6 $3.28 4.6 $3.42 16.0 $3.74
Fixed Price 0.50 $5.78 $5.78 1.8 $5.28 $5.28 0.8 $5.23
Economic
Fixed Price 6.10 $8.05 $8.05 24.7 $8.11 $8.11
Ceiling 60.0 $9.50 $9.50 21.0 $9.00 18.0 $10.00 16.8 $8.75
Floor 18.00 $6.00 $6.00 120.0 $7.00 $7.00 21.0 $7.00 18.0 $6.00 16.8 $6.00
30.0 $6.00
2005 2006 2007 2008
Average Average Average Average
Notional Hedge Average Notional Hedge Average Notional Hedge Notional Hedge
Oil Volume Price Cash Price Volume Price Cash Price Volume Price Volume Price
(MMBbl) ($/MMBtu) ($/MMBtu) (MMBbl) ($/MMBtu) ($/MMBtu) (MMBbl) ($/MMBtu) (MMBbl) ($/MMBtu)
Designated
Fixed Price 0.1 $35.15 $35.15 0.4 $35.15 $35.15 0.2 $35.15
Economic
Fixed Price 0.2 $59.20 $59.20 1.0 $58.81 $58.81
Ceiling 1.0 $60.38 0.9 $57.03
Floor 1.0 $55.00 0.9 $55.00
See El Paso’s form 10-Q filed 8/5/05 and form 10-K/A filed 6/15/05 for additional information on the company’s derivative activity
1Hedge price and cash price are identical for 2007–2012
Note: As of August 30, 2005
26

27. Doug Foshee
President and Chief Executive Officer
Banc of America
Annual Investor Conference
September 20, 2005
the place to work
the neighbor to have
the company to own