Competitive Natural Gas Sales & ServicesFrom Wellheads to Markets

Competitive Natural Gas Sales & Services

Providing Energy Solutions and Aligning Our Portfolio to Meet Customer Needs

Our competitive natural gas sales and services business was challenged by narrower transportation differentials, lower seasonal natural gas storage differentials and reduced market volatility in 2010. Though we grew our retail customer base for the fourth consecutive year, this growth did not offset declines in our wholesale operations. However, we believe our business as a whole has growth opportunities in volume, customers and geography. Operating income was $16 million in 2010, compared to $21 million in 2009.

Our retail marketing operations increased the sales volume as well as its customer count by 9 percent, bringing our total customer base to more than 12,000 in 17 states. A portion of this increase occurred in our Gulf Coast territory where smaller businesses became eligible to use our gas supply services. In addition, we provide a referral service between retail electric suppliers and our customers, complementing our natural gas services and leveraging our strong customer relationships.

Our wholesale group manages the acquisition of more than 500 billion cubic feet (Bcf) of natural gas, 15 Bcf of storage capacity and 1 Bcf per day of firm pipeline transportation capacity across 40 different pipeline systems. As a result of reduced locational differentials and seasonal spreads, our wholesale operations had another disappointing year as market conditions during the past two years made several of our transportation contracts unprofitable. As these contracts expire over the next several years, we will use this opportunity to realign our asset portfolio to meet changing market conditions and our customers' needs. We continue to achieve high customer satisfaction and retention.

We continue to expand our producer services offerings, which provide fully integrated services to move natural gas from the wellhead to our end-use markets. This service allows producers to focus on their core business, while providing us with long-term, reliable, competitively priced natural gas supplies. Last year, we increased the volume of gas purchased directly from producers by 17 percent.

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Natural Gas Supply Chain

Natural Gas Supply Chain

We provide energy products and services at all points along the natural gas supply chain – upstream, midstream and downstream – as it flows from wellhead to burner.

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Competitive Natural Gas Sales and Services Highlights

Energy Advice
We help customers make intelligent decisions on managing their energy purchases.

Competitive Natural Gas Sales and Services Highlights

From Wellheads to Markets
Our producer services function enables producers to focus on their core business and provides us with long-term, reliable, competitively priced natural gas supplies.

Competitive Natural Gas Sales and Services Highlights

12,000
Serving more than 12,000 customers across 17 states east of the Rocky Mountains, we provide energy products and services to schools, hospitals, small retail businesses, refineries, manufacturing plants, power generators, utilities, agricultural processing plants and more.