EX-99.1 2 presentation.htm EXHIBIT - 99.1 presentation.htm


2008 Outlook
Earnings, EBITDA & Capital Expenditure Guidance

March 6, 2008

Forward-Looking Statements
Statements contained in this presentation that include company expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.  It is important to note that the actual results of company earnings could differ materially from those projected in any forward-looking statements.  For additional information refer to Southern Union Company’s Securities and Exchange Commission filings.

Southern Union Contact:
Jack Walsh, Vice President - Investor Relations
212-659-3208
jack.walsh@sug.com

Guidance and EBITDA Outlook
•           2008 earnings guidance
–           SUG’s earnings guidance range is $1.80 to $1.90 per share
–           Guidance range is driven by:
ü           Timing and amount of capital spending program
ü           Commodity price impact on unhedged gathering & processing volumes and operating efficiency
ü           Operating and maintenance expense containment
•           Expect significant EBITDA growth in 2009 from Trunkline IEP ($60MM to $65MM annualized)
•           EBITDA adjusted for impact of Trunkline IEP is expected to be $80MM to $125MM or 10% to 15% greater than 2007

 

Pro forma EBITDA Guidance ($000,000s)

Business Segment
  
2007 Actual
    
2008 Estimate
    
2008 Adjusted(1)
  
                   
Transportation & Storage
   $ 377     $ 385 - $395     $ 445 - $450  
Citrus (50% interest)
   $ 195 (2)   $ 185 - $190     $ 185 - $190  
Gathering & Processing
   $ 154 (3)   $ 170 - $185     $ 170 - $185  
Distribution & Other
   $ 104     $ 110 - $120     $ 110 - $120  
Consolidated
   $ 830     $ 850 - $890     $ 910 - $955  
                       
Note: Pro forma EBITDA is equal to earnings before interest, taxes, depreciation, amortization and
other items as discussed below. Pro forma EBITDA presents Southern Union's 50% interest in
  
Citrus Corp on a proportionate basis. For GAAP purposes, Southern Union's interest in Citrus is
  
reflected in equity earnings from unconsolidated investments.
      
(1) "2008 Adjusted" reflects 2008 Estimate adjusted for the annualized impact of the
  
Trunkline LNG Infrastructure Enhancement Project (estimated to be $60 to $65 million)
  
expected to be in-service 2Q2009.
        
(2) Excludes one-time gains primarily related to Citrus litigation settlement and non-cash purchase
     accounting adjustments.
          
(3) Includes approximately $30 million of cash received from 2007 put options
  
     not included in income.
          

2008 Capital Expenditure Guidance ($000,000s)

Business Segment
  
Maintenance
    
Growth
    
Total
  
                   
Transportation & Storage
   $ 140     $ 255 - 305     $ 395 - 445  
Gathering & Processing
   $ 30     $ 30 - 35     $ 60 - 65  
Distribution & Other
   $ 35     $ 20 - 30     $ 55 - 65  
Consolidated
   $ 205     $ 305 - 370     $ 510 - 575  
                         




Reg. G Reconciliation

Segment ($000)
    
2007 Actual
    
2008 Estimate
    
2008 Adjusted(5)
  
Transportation & Storage(1):
                  
 
Operating Income
   $ 289     $ 280 - $290     $ 330 - $345  
 
Depreciation & Amortization
     86       105       115  
 
Other Including Other Income
     2       -       -  
 
Pro forma EBITDA
     377       385 - 395       445 - 460  
Citrus Corp. (50%):
                          
 
Operating Income
     142       130 - 135       130 - 135  
 
Depreciation & Amortization
     51       53       53  
 
Other Including Other Income (2)
     2       2       2  
 
Pro forma EBITDA
     195       185 - 190       185 - 190  
Gathering & Processing:
                          
 
Operating Income
     62       110 - 125       110 - 125  
 
Depreciation & Amortization
     59       60       60  
 
Other Including Other Income (3)
     33       -       -  
 
Pro forma EBITDA
     154       170 - 185       170-185  
Distribution & Other(4):
                          
 
Operating Income
     73       75 - 85       75 - 85  
 
Depreciation & Amortization
     33       35       35  
 
Other Including Other Income
     -2       -       -  
 
Pro forma EBITDA
     104       110 - 120       110 - 120  
                           
Total Pro forma EBITDA:
     $ 830     $ 850 - $890     $ 910 - $955  
                           
 
(1)
Excludes Citrus Corp. which is separately listed for presentation purposes.  Southern Union’s 50%  interest in Citrus Corp. is recorded in equity earnings from unconsolidated investments for GAAP purposes.
(2)
Excludes one-time gains related to the Citrus litigation settlement and non-cash purchasing accounting adjustments included in Southern Union’s equity earnings from unconsolidated investments for GAAP purposes. Equity earnings were $99  million for 2007.
(3)
Other Income includes approximately $30 million of cash received from the 2007 put options not reflected in earnings.
(4)
"Other" includes Corporate, the Company's investment in PEI Power Corp. and Fall River Gas Appliance.
(5)
2008 Adjusted guidance is equivalent to 2008 plus the inclusion of the annualized impact of the Trunkline LNG IEP (estimated to be $60 to $65MM of EBITDA).