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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
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[ ] Confidential, for Use of the Commission Only (as permitted by
Rule14a-6(e)(2))
[ ] Definitive Proxy Statement
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[X] Soliciting Material Pursuant to Rule 14a-12
EL PASO CORPORATION
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(Name of Registrant as Specified in its Charter)
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EL PASO CORPORATION ANNOUNCES IT HAS EXCEEDED FIFTY PERCENT OF ITS 2003
NON-CORE ASSET SALES GOAL
HOUSTON, TEXAS, MARCH 27, 2003--El Paso Corporation (NYSE:EP) today
announced that it has completed or signed additional asset sales that
result in transactions totaling over $1.7 billion since January 1 of this
year. This total represents more than 50 percent of the company's asset
sales goal of $3.4 billion for calendar year 2003.
o The company announced the sale of its asphalt business to
Trigeant EP, Ltd. for an estimated purchase price of $63 million,
including approximately $28 million for the business's inventory.
The consideration includes a $23 million secured note, with the
balance in cash at closing. The transaction involves the sale of
an asphalt refinery in Alabama, terminaling facilities, and
associated sales and marketing divisions, plus assumption of
certain Kansas Asphalt operations under a long-term lease. El
Paso acquired the Asphalt business through its merger with The
Coastal Corporation in 2001.
o El Paso sold its 17.8-percent interest in the ECK Generating
project and affiliated businesses to a Swiss energy company. The
project, located near Prague, Czech Republic, is a 343-megawatt
power generating station that provides approximately 3 percent of
the country's total electricity demand. Financial terms were not
disclosed.
o El Paso completed the sale of its remaining 2.1-percent equity
interest in the Alliance Pipeline to affiliates of Enbridge Inc.
(NYSE:ENB) and Fort Chicago Energy Partners L.P. (TSX:FCE.UN) for
$24.4 million. In November 2002, Fort Chicago and Enbridge
acquired the majority of El Paso's interests in the Alliance
Pipeline and all of El Paso's interest in the Aux Sable natural
gas liquids plant and Alliance Canada Marketing.
o El Paso also closed the sale of its Drumheller, Alberta area oil
and natural gas assets, production facilities, gas plants and
undeveloped lands to Canadian Superior Energy Inc. for $36.1
million.
These asset sales support El Paso's previously announced 2003 five-point
business plan, which includes exiting non-core businesses quickly but
prudently and strengthening and simplifying the balance sheet while
maximizing liquidity.
El Paso Corporation is the leading provider of natural gas services and the
largest pipeline company in North America. The company has core businesses
in pipelines, production, midstream services, and power. El Paso
Corporation, rich in assets and fully integrated across the natural gas
value chain, is committed to developing new supplies and technologies to
deliver energy. For more information, visit www.elpaso.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This release 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
release, including, without limitation, our ability to attract and retain
qualified members of the Board of Directors; the successful recruitment and
retention of a qualified CEO; the successful implementation of the 2003
operational and financial plan; actions by the credit rating agencies; the
successful close of financing transactions; our ability to successfully
exit the energy trading business; our ability to divest of certain non-core
assets; changes in commodity prices for oil, natural gas, and power;
general economic and weather conditions in geographic regions or markets
served by El Paso Corporation 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; inability to
realize anticipated synergies and cost savings associated with
restructurings and divestitures on a timely basis; difficulty in
integration of the operations of previously acquired companies,
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.
ADDITIONAL IMPORTANT INFORMATION
Prior to its 2003 annual meeting, El Paso will furnish to its shareholders
El Paso's definitive proxy statement relating to this meeting, together
with a WHITE proxy card. Shareholders are strongly advised to read this
proxy statement when it becomes available, as it will contain important
information.
Shareholders will be able to obtain El Paso's proxy statement, any
amendments or supplements to the proxy statement and any other documents
filed by El Paso with the Securities and Exchange Commission for free at
the Internet website maintained by the Securities and Exchange Commission
at www.sec.gov. Copies of the proxy statement and any amendments and
supplements to the proxy statement will also be available for free at El
Paso's Internet Web site at www.elpaso.com or by writing to El Paso
Corporation, Investor Relations, PO Box 2511, Houston, TX 77252. In
addition, copies of the proxy materials may be requested by contacting our
proxy solicitor, MacKenzie Partners, Inc. at (800) 322-2885 Toll-Free or by
email at proxy@mackenziepartners.com.
To the extent that individual customers, independent industry researchers,
financial analysts, or El Paso commissioned research, are quoted herein, it
is El Paso's policy to use reasonable efforts to verify the source and
accuracy of the quote. El Paso has not, however, sought or obtained the
consent of the quoted source to the use of such quote as proxy soliciting
material. This document may contain expressions of opinion and belief.
Except as otherwise expressly attributed to another individual or entity,
these opinions and beliefs are the opinions and beliefs of El Paso.
Information regarding the names, affiliation and interests of individuals
who may be deemed participants in the solicitation of proxies of El Paso's
shareholders is contained in Schedule 14A filed by El Paso with the
Securities and Exchange Commission on February 18, 2003, as amended by a
Schedule 14A filed by El Paso on March 18, 2003.
CONTACTS
Communications and Government Affairs
Norma F. Dunn, Senior Vice President
Office: (713) 420-3750
Fax: (713) 420-3632
Investor Relations
Bruce L. Connery, Vice President
Office: (713) 420-5855
Fax: (713) 420-4417
Alternate Contacts
Joele Frank/Dan Katcher
Joele Frank, Wilkinson Brimmer Katcher
Office: (212) 355-4449
Fax: (212) 355-4554