Investor Meetings

May 21-22, 2008

Forward-Looking Statements

Agenda

•   Southern Union Company Overview

•   Creating Shareholder Value

•   2007 Accomplishments/Recent Announcements

•   Segment Information & Growth Drivers

•   2008 Financial Outlook

•   Conclusion

•   Appendix

Southern Union Company Overview

Southern Union Transformation

Map of Operations

Business Segments

Transportation & Storage

•   Vast pipeline network with access to diverse supply sources and growing markets

•   Approximately 15,000 miles of interstate pipelines with transportation capacity of 7.8 Bcf/d

•   North America’s largest liquefied natural gas (LNG) import terminal with peak send out of 2.1 Bcf/d and storage of 9 Bcf

•   Interests in approximately 94 Bcf of storage

Gathering & Processing

•   Extensive system in the prolific Permian Basin

•   Approximately 4,800 miles of pipelines

•   Five processing plants (four active) with a capacity of 470 MMcf/d

•   Eight treating plants (five active) with a capacity of 765 MMcf/d

Distribution & Other

•   Distribution serves approximately 550,000 customers in Missouri and Massachusetts

•   PEI Power Corporation owns interests in and operates 70 MW of generating assets which supply electricity into the PJM Grid

Creating Shareholder Value

Value Creation

•   Value creation will come from:

–   Organic growth projects

–   Strategic initiatives

–   Prudent financial management

Organic Growth Projects

•   Vast pipeline network with access to multiple supply sources and diverse markets will help fuel organic growth

•   Analyze trends in the natural gas industry to identify opportunities

•   Recent open seasons:

–   FGT Phase VIII expansion

–   FGT Pascagoula lateral to serve GulfLNG Energy, LLC import terminal

–   Longville – Henry Hub expansion on Trunkline Gas

•   Southern Union Gas Services is well positioned to capture potential opportunities resulting from the development of the West Texas Barnett Shale

Strategic Initiatives

•   Evaluate and pursue market opportunities

–   Strategic acquisitions

–   Partnership or joint venture opportunities

•   Continue to evaluate market conditions for creating an MLP for gathering and processing assets

Prudent Financial Management

•   Preservation of investment grade ratings is important for:

–   Lower financing costs/eliminates collateral requirements

–   Improves rate making and regulatory relationships

•   Free cash flow may be used for:

–   Organic growth projects

–   Share repurchases

–   Increased dividends

§  SUG recently announced 50% increase in annual dividend effective 4Q07 to $.60 per share from $.40 per share

–   Debt repayment

•   Actively manage operating expenses

2007 Accomplishments & Recent Announcements

Significant Events - 2007

•   Completed Trunkline Field Zone expansion with capital cost, excluding capitalized interest, of $255MM and EBITDA of $30 to $37MM

•   Completed FGT Phase VII expansion with capital cost of $60MM and EBITDA of $10MM

•   Successfully completed rate case filings at both LDC properties

•   Increased annual cash dividend by 50% to $.60 per share

Recent Announcements

•   Increased Trunkline IEP project cost, excluding capitalized interest, to $365 million and EBITDA to $60 to $65 million

•   Florida Gas Transmission announced $2.1 billion Phase VIII expansion with a spring 2011 in-service date

–   80% of capacity contracted for 25 year terms

•   Announced 2008 EBITDA guidance of $850 to $890 million, EPS guidance of $1.80 to $1.90 per share and capital expenditures guidance of $510 to $575 million

•   Announced several additions to SUGS’ hedging program

Transportation & Storage

Transportation & Storage Assets

T&S Growth Drivers

Trunkline Field Zone Expansion

Trunkline LNG: Infrastructure Enhancement Project

FGT Phase VIII Expansion

FGT Phase VIII Expansion Timeline

FGT Pascagoula Lateral

Gathering & Processing

Map of Operations

SUGS Overview

•   Located in prolific, long-lived Permian Basin

•   Approximately 4,800 miles of gas and liquids pipelines covering 16 counties in West Texas/Southeast New Mexico

•   Two fully-integrated midstream systems connected via high-pressure pipeline network

–   North System: Jal and Keystone

–   South System: Coyanosa, Mi Vida, Tippett and Grey Ranch

–   Integration: 24-inch high-pressure pipeline

•   Four active cryogenic plants and five active treating plants

•   Attractive downstream markets

–   Residue: California, Mid-Con, Texas

–   NGLs: Mont Belvieu

•   Attractive contract mix – 96% + POP / Fee-based

North System

•   Consists of the Jal and Keystone Systems

–   Large diameter predominately low pressure pipelines

–   Wellhead volume of 243,000 MMBtu/d of 5.0 GPM sour gas

–   220 MMcf/d cryogenic plant capacity

–   21,800 bbls/d NGL production

–   40 tons/d sulfur plant capacity

–   Recent compression and high pressure pipeline upgrades

–   Completion of sour gas 16-inch transfer line in June 2007

South System

•   Consists of the Mi Vida, Coyanosa and Tippett Systems

–   High pressure integrated sweet and sour gas gathering system

–   Wellhead volume 348,000 MMBtu/d

–   190 MMcf/d cryogenic processing capacity

–   Plant inlet of 175 MMcf/d of 3.5 GPM gas producing 11,500 bbls/d of NGLs

–   370 MMcf/d treating capacity with 115 MMcf/d current throughput

–   Third Party Processing 18.8 MMcf/d

•   Grey Ranch System

–   High CO2 gathering and treating system

–   Earn fixed fee for removing CO2 volumes

–   87 MMcf/d current throughput

–   Expect significant volume growth

High Pressure Transfer System

Diversified, Active Producer Portfolio

Gas Supply – Contract Risk Mitigation

•   Eliminated keep whole exposure

•   Changed gas pricing mechanism – FOM to Gas Daily

–   Removed remaining keep whole risk from POP contracts

–   Removed risk from daily volume swings

•   Included producer indemnifications on capital intensive projects

Key Assumptions for 2008

•   Positive processing spread environment allows conversion of equity into 100% natural gas liquids

•   Equity volumes average 40,000 to 45,000 MMBtu/d (converted from NGL gallons to BTUs)

•   Normalized FF&U levels

•   Incorporates current hedging program

Hedged Positions

•   SUGS expects equity volumes for 2008 to be approximately 40,000 to 45,000 MMBtu/d of NGLs

•   Through a combination of swaps and put options on natural gas and NGL processing spreads, SUGS has a net effective price on 30,000 MMBtu/d of $15.02 for the balance of 2008

•   SUGS entered into a processing spread swap on 10,000 MMBtu/d at $7.10 for 2008

•   SUGS entered into swaps on 10,000 MMBtu/d of natural gas at $8.19 per MMBtu for 2009

•   SUGS entered into a processing spread swap on 15,000 MMBtu/d at $6.76 for 2009

G&P Growth Drivers

Growth Drivers

•   Aggressively pursue new business

•   Operating & maintenance expense management

•   Invest capital throughout the system to ensure efficiency

•   Exploit competitive advantages

SUGS Growth Projects

•   Deep Atoka Gas Development – Loving, Winkler and Ward Counties, Texas

§   Production peaked in 2007 at approximately 350MM/d

§   Anadarko and Chesapeake continue active drilling program

§   Initial per well delivery rates up to 40MMcf/d per well

•   Eunice Area Expansion Projects – Lea County, New Mexico

§   Treating expansion project with acid gas injection well to be complete in 2008

§   Expect to connect additional growth volumes from Apache, Range, Bass and other active producers in 2008 and 2009

§   High margin, rich, sour, low pressure gas

•   Grey Ranch Treating Expansion – Pecos County, Texas

•   Expand capacity from 90 MMcf/d to 180 MMcf/d

•   Partner drilling program adding significant volumes of 70% CO2 gas supporting expansion

•   Estimated completion in July 2008

•   West Texas Barnett Shale – Culberson, Reeves, Pecos & Jeff Davis Counties, TX

§   Over 2 MM acres have been leased in the area with little infrastructure for gas or NGLs

§   Over 40 evaluation wells have been drilled, are drilling or are permitted in the trend

§   Chesapeake has acquired over 800,000 acres and has an active exploratory program which has established commercial production in the area

§   Additional players include: EOG, Encana, Petro-Hunt, Burlington, Quicksilver and Southwestern Energy

Distribution & Other

Missouri Gas Energy

New England Gas Company

New England Gas Company is a local distribution

company serving North Attleboro and Fall River, MA

•   Provides natural gas to 50,000 customers

•   Nearly 2,000 miles of main and service lines

•   NEGCO received a $4.6MM annual revenue increase in 2007

–   Settlement includes mechanisms to recover gas-cost related uncollectible expense, pension costs and other postretirement benefit costs

–   New rates phased in over eight-month period beginning August 1, 2007

2008 Outlook

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   Commodity price impact on unhedged gathering & processing volumes and operating efficiency

ü   Operating and maintenance expense containment

ü   Timing and amount of capital spending program

•   Expect significant EBITDA growth in 2009 from Trunkline IEP ($60MM to $65MM annualized)

•   Pro forma 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)

2008 Capital Expenditure Guidance ($000,000s)

2008 EBITDA by Segment

•   EBITDA from regulated assets accounts for approximately 80% of total providing stability to earnings and cash flows

•   EBITDA from SUGS is only 20% of total

•   SUGS actively manages its commodity exposure through hedging instruments

Conclusion

Summary

•   Compelling vision and clear strategic plan going forward

–   Strategic transformation and value creation achieved

–   Well advanced organic growth projects with clear visibility towards value creation

–   MLP structure as a potential growth vehicle providing a lower cost of capital and strategic flexibility

–   Balance preservation of investment grade credit ratings and return of capital to shareholders

Appendix

Company Facts

Reg. G Reconciliation