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EP Energy Corporation (the “Company”) will not make on August 15, 2019 (the “Interest Payment Date”) the approximately $40.0 million cash interest payment (the “Interest Payment”) due and payable on the Interest Payment Date with respect to the outstanding 8.00% Senior Secured Notes due 2025 (the “Notes”) issued by EP Energy LLC (“EP Energy LLC”) and Everest Acquisition Finance Inc. (together with EP Energy LLC, the “Issuers”), both indirect, wholly-owned subsidiaries of the Company, under the indenture governing the Notes (the “Indenture”).

Under the Indenture, the Issuers have a 30-day grace period to make the Interest Payment before such non-payment is an “event of default” under the Indenture. No “event of default” will be deemed to have occurred under the Indenture unless the Issuers do not make the Interest Payment prior to the expiration of the 30-day grace period.

As reported in our Quarterly Report on Form 10-Q for the period ending June 30, 2019, in order to address liquidity and balance sheet issues, our Board of Directors (the “Board”) has appointed a special committee (the “Special Committee”) of the Board consisting of independent members of the Board who are not affiliated with our Sponsors (affiliates of Apollo Global Management LLC, Riverstone Holdings LLC, Access Industries and Korea National Oil Corporation, collectively, the “Sponsors”), and the Company has engaged financial and legal advisors to consider a number of potential actions we may take in order to address these issues. The Company is evaluating certain strategic alternatives including financings, refinancings, amendments, waivers, forbearances, asset sales, debt issuances, exchanges and purchases, out-of-court or in-court restructurings (pursuant to which we may seek relief under the United States Bankruptcy Code, Title 11) and/or similar transactions involving the Company, none of which have been implemented at this time. The Special Committee is authorized to, among other things, consider, evaluate and approve such strategic alternatives.

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