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Competitive Natural Gas Sales & Services

Expanding into new markets and adding services
Accelerating execution of our business strategy

For the fifth consecutive year, we expanded our customer base; however, our financial performance was hampered by the cost of restructuring our pipeline capacity commitments and the absence of significant improvement in wholesale asset market fundamentals. Operating income for the year was $6 million, compared to $16 million in 2010.

2011 marked a year of change and repositioning. Given the significant changes in geographic and seasonal natural gas differentials, we re-evaluated the pipeline and storage assets under contract and accelerated the release of some uneconomic capacity. We also reorganized our workforce to better serve existing customers while pursuing future growth opportunities.

We added more than 1,400 diverse large-volume commercial and industrial customers and 13,000 residential accounts through state “choice” programs with our acquisition of a small marketing company. We have expanded into four new states, bringing our total number of states served to 21.

Mobile Energy Solutions, which provides temporary natural gas delivery solutions for industrial and utility customers, was transferred from the company’s gas operations unit into this business to facilitate more service offerings and increase sales opportunities.

We also invested in our intrastate pipeline system to serve new industrial customers along the Gulf Coast. We introduced Green Balance, a carbon-neutral gas purchase program that gives customers the ability to offset carbon emissions related to their natural gas consumption. Additionally, online self-service options were added, and for the eighth year in a row we achieved a customer satisfaction rate of more than 90 percent. We also launched our Premier Partners program to provide enhanced services to our key national account customers.

Competitive Natural Gas Sales & Services

Delivering Results

  • $6 million in operating income
  • Accelerated our strategy of releasing unprofitable pipeline capacity contracts
  • Expanded into four new states
  • Invested in our intrastate pipeline system to serve new industrial customers along the Gulf Coast
  • Introduced Green Balance, a carbon-neutral gas purchase program that gives customers the ability to offset carbon emissions
  • Launched our Premier Partners program for national accounts

Competitive Natural Gas Sales & Services

Pursuing Opportunities

One of the many customers we serve, Ternium USA, Inc., produces galvanized metal for buildings. With innovative service offerings, we expect to continue to grow our number of commercial and industrial customers.

Pursuing Opportunities

  • Focus on retail customer growth through continued geographic expansion and increased market share
  • Increase service offerings through Mobile Energy Solutions, which provides temporary natural gas supplies