El Paso Corporation Reports 83 Percent Increase in First Quarter Adjusted EPS

Market Wire, May, 2008

El Paso Corporation (NYSE: EP) is reporting today first quarter 2008 financial and operational results for the company.

Highlights:

--  $0.29 earnings per diluted share from continuing operations versus a
    loss of $0.08 in 2007
--  Pipeline earnings before interest expense and taxes (EBIT) and
    throughput up 5 percent and 7 percent, respectively, from first quarter
    2007
--  Exploration & Production (E&P) EBIT up 35 percent versus first quarter
    2007
--  Production, including unconsolidated affiliate volumes, totaled 886
    million cubic feet equivalent per day (MMcfe/d) -- an 8 percent increase
    over first quarter 2007
--  Expanded hedge position for 2008 and 2009. Oil hedges for 2009 ensure
    approximately $105 million of incremental revenues versus 2008.
    

"Our first quarter results provide a great start to the year," said Doug Foshee, president and chief executive officer for El Paso Corporation. "We achieved solid results from both our Pipeline and E&P businesses, as well as an 18 percent reduction in interest expense. Looking forward, we expect to realize sharply higher earnings than our $1.00 to $1.10 earnings guidance for 2008 as our hedging strategy has enabled us to participate in improved natural gas and oil prices."

Financial Results - Three Months Ended March 31, 2008

For the three months ended March 31, 2008, El Paso reported net income available to common stockholders of $200 million, or $0.29 per diluted share, compared with $620 million, or $0.89 per diluted share, for the first three months of 2007. Results for 2007 include $677 million, or $0.97 per diluted share, of income from discontinued operations, which includes a $651-million, or $0.94-per-diluted-share-gain from the sale of ANR Pipeline and related assets. The 2007 net loss from continuing operations to common stockholders was $ 48 million, or $0.08 per diluted share.

A summary of financial results for the three months ended March 31, 2008, and 2007 is as follows:

Financial Results                                   Three Months Ended
                                                         March 31,
($ in millions, except per share amounts)           2008          2007
                                               -------------  ------------
Income (loss) from continuing operations       $         219  $        (48)
Discontinued operations, net of income taxes               -           677
                                               -------------  ------------
Net income                                               219           629
Preferred stock dividends(1)                              19             9
                                               -------------  ------------
Net income available to common stockholders    $         200  $        620
                                               =============  ============

Basic and diluted per common share amounts
  Income (loss) from continuing operations     $        0.29  $      (0.08)
  Discontinued operations                                  -          0.97
                                               -------------  ------------
  Net income per common share                  $        0.29  $       0.89
                                               =============  ============

(1) Due to timing, 2008 includes two quarters of preferred stock dividends

Items Impacting Quarterly Results

First quarter 2008 and 2007 net income includes the following items:

First Quarter 2008

($ millions, except per  share amounts)      Before     After     Diluted
                                              Tax        Tax        EPS
                                            --------   --------   --------
Net income available to common shareholders            $    200   $   0.29
Adjustments(1)
  Change in fair value of production-
   related derivatives                      $     21   $     13   $   0.02
  Change in fair value of power contracts         41         26       0.04
  Change in fair value of legacy
   indemnification                                43         28       0.04
  Case Corporation indemnification               (65)       (27)     (0.04)
  Gain on sale of portion of
   telecommunications business                   (18)       (12)     (0.02)
                                                                  --------
    Adjusted EPS--continuing operations(2)                        $   0.33
                                                                  ========

(1) Assumes a 36 percent tax rate, except for Case Corporation
    indemnification, and 701 million diluted shares
(2) Based upon 767 million fully diluted shares and includes income impact
    from dilutive securities


First Quarter 2007

($ millions, except per  share amounts)      Before     After     Diluted
                                              Tax        Tax        EPS
                                            --------   --------   --------
Net income available to common
 shareholders                                          $    620   $   0.89
Adjustments(1)
  Change in fair value of production-
   related derivatives                      $     87   $     56   $   0.08
  Debt repurchase costs                          201        128       0.18
  Discontinued operations (ANR)               (1,048)      (677)     (0.97)
                                                                  --------
    Adjusted EPS - continuing operations(2)                       $   0.18
                                                                  ========

(1) Assumes a 36 percent tax rate, except for discontinued operations, and
    694 million diluted shares
(2) Based upon 756 million diluted shares and includes the income impact
    from dilutive securities