Attached files
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| EX-99.1 - EXHIBIT 99.1 - SOUTHERN UNION CO | presentation.pdf |
| 8-K - SOUTHERN UNION COMPANY FORM 8-K, AUGUST 18, 2010 - SOUTHERN UNION CO | suform8k_081810.htm |
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Tuohy Brothers
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Natural Gas Infrastructure & Production
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Investor Meetings
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August 18, 2010
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Forward-Looking Statements
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Company Overview
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Focus on natural gas infrastructure
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Attractive industry outlook
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Natural gas is key to America’s energy future
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High-quality assets with diverse supply and strong markets
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Principally regulated asset base
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Provides earnings and cash flow stability through long-term contracts
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Business model proven to weather economic cycles
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Organic growth projects provide low-risk growth trajectory
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Map of Operations
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Company Facts
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Transportation & Storage
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Vast pipeline network with access to diverse supply sources and growing markets
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Approximately 15,000 miles of interstate pipelines with transportation capacity of 7.8 Bcf/d
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One of North America’s largest liquefied natural gas (LNG) import terminals with peak send out of 2.1 Bcf/d and storage of 9 Bcf
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Owns/leases approximately 100 Bcf of storage
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Transportation & Storage Assets
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Trunkline LNG:
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Infrastructure Enhancement Project
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FGT Phase VIII Expansion
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FGT Phase VIII Expansion Timeline
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FGT Pascagoula Lateral
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Gathering & Processing
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Located in prolific, long-lived Permian Basin
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Approximately 5,500 miles of gas and gas liquids pipelines covering 16 counties in West Texas/Southeast New Mexico
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Two (North and South) fully-integrated midstream system interconnected via high-pressure transfer system
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Four active cryogenic plants and six active treating plants
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Restarted Mi Vida treating facility in February 2010
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Expect to restart Halley processing plant in 4Q2010
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Attractive downstream markets
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Attractive contract mix: 60% POP; 40% Fee + Conditioning
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Map of Operations
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North System
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Consists of the Jal and Keystone Systems
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Low pressure integrated sour gas gathering systems
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Average processed volumes over 200 MMcfd
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22,000+ barrels per day (bpd) NGL production
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225 MMcfd cryogenic processing capacity
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325 MMcfd sour gas treating capacity
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40 tons per day sulfur plant capacity
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South System
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Consists of the Mi Vida, Coyanosa and Tippett Systems
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High pressure integrated sweet and sour gas gathering systems
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Average wellhead volumes 270 MMcfd
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Average processed volumes 170 MMcfd
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11,000+ bpd NGL production
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190 MMcfd cryogenic processing capacity
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250 MMcfd sour gas treating capacity
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High Pressure Transfer System
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2010/2011 Growth Opportunities
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Bone Springs Growth Opportunities
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Driven by Bone Springs shale development
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Restarted Mi Vida treater during February 2010
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Added 110MMcf/d of treating capacity
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Halley processing plant restart
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Phase I
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Adds 60MMcf/d of cryo processing capacity late 4Q10
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Phase II (if commercially necessary)
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Adds 50MMcf/d of additional cryo processing capacity
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6 month lead time
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Expect capacity to be sold under percentage of proceeds contracts
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Gathering & Processing Assumptions
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Positive processing spread environment encourages optimal Natural Gas Liquid recoveries; Normalized fuel, flare and unaccounted-for volumes
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2010 projected equity volumes
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Natural Gas Liquids equivalent of 35,000 to 40,000 MMBtu/d
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Natural Gas of 15,000 to 20,000 MMBtu/d
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2010 hedge positions
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40,000 MMBtu/d of NGL equivalent at $10.44
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5,000 MMBtu/d of natural gas $5.33
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2011 hedge positions
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25,000 MMBtu/d of NGL equivalent at $11.63
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Distribution
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Missouri Gas Energy
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Provides natural gas to over 500,000 customers
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Nearly 13,000 miles of main and service lines
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Received a $16.2MM annual base rate increase effective February 28, 2010
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New rate design eliminates impact of weather or conservation on margin for residential and small general service customer classes
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New England Gas Company
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Provides natural gas to 50,000 customers
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Nearly 2,000 miles of main and service lines
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Received $3.7MM in increased annual base rates in February 2009
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Corporate & Other
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Corporate segment provides administrative and support functions to business segments and allocates expenses as appropriate
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Other segment primarily consists of PEI Power Corporation which owns interests in and operates 75 MW of generating assets in the PJM ISO and Fall River Gas Appliance
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Summary
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Focus on natural gas related infrastructure
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Organic growth projects with clear visibility towards earnings and cash flow growth
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Actively managed hedging program helps mitigate volatility in NGL margins
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Balance preservation of investment grade credit ratings and return of capital to shareholders
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