EXHIBIT 99.A
[El Paso Logo]
News
For Immediate Release
El Paso Production Holding Company Receives Waiver of Indenture
Default
HOUSTON, TEXAS, July 9, 2004-El Paso Production Holding Company
(EPPH), a subsidiary of El Paso Corporation (NYSE: EP), today
announced that it has entered into an agreement with the holders
of a majority of its 7 3/4-percent Senior Notes due 2013, issued
and outstanding under the indenture dated May 23, 2003. The
agreement with the noteholders provides for a waiver of the
breach by EPPH of its covenant to timely file its annual and
quarterly reports with the Securities and Exchange Commission.
The waiver will be effective until December 31, 2004. In
connection with the waiver, EPPH has agreed to modify the
covenants under this indenture with respect to affiliated party
transactions. In particular, the agreement prohibits certain
affiliated party transactions in excess of $100 million if the
transactions would have a negative effect on EPPH's ratio of debt
to proved reserves or its ratio of debt to EBITDA. The company
does not anticipate these changes will impact the manner in which
EPPH is managed.
El Paso Corporation provides natural gas and related energy
products in a safe, efficient, dependable manner. The company
owns North America's largest natural gas pipeline system and one
of North America's largest independent natural gas producers.
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, any developments
arising from additional reviews of the reserve revisions
performed internally or by independent counsel to the Audit
Committee; the extent and time periods involved in the
restatement of our prior years' financial results; the upcoming
discussions with the SEC regarding the company's plan for
restatement of prior years' financial results; the potential
impact of the restatement of financial results on our access to
capital (including borrowings under credit arrangements of us or
our affiliates); the availability of certain information required
to complete some alternative forms of restatement associated with
the reserve revisions; further changes in reserve estimates based
upon internal and third party reserve analyses; uncertainties
associated with the outcome of governmental investigations;
outcome of litigation including shareholder derivative and class
actions related to reserve revisions and restatements affecting
us or our affiliates; consequences arising from the delay in
filing of our periodic reports; 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.
Contacts
Investor and Public Relations
Bruce L. Connery, Vice President
Office: (713) 420-5855
Fax: (713) 420-4417
Media Relations
Kim Wallace, Manager
Office: (713) 420-6330
Fax: (713) 420-6341