•   Wells Fargo Securities

•   New York

•   October 15, 2009

•   Forward-Looking Statements

•   Company Overview

•   Focus on natural gas infrastructure

–   Attractive industry outlook

–   Natural gas is key to America’s energy future

–   High-quality assets with diverse supply and strong markets

•   Principally regulated asset base

–   Provides earnings and cash flow stability through long-term contracts

–   Business model proven to weather economic cycles

•   Organic growth projects provide low-risk growth trajectory

•   Map of Operations

•   Investment Grade Focus

•   Maintenance of investment grade ratings through:

–   Prudent financial management

–   Disciplined evaluation of capital investment opportunities

–   Appropriate use of free cash flow

•   Investment grade ratings are important for:

–   Lower overall financing costs

–   Minimize/eliminate collateral requirements

–   Improved rate making and regulatory relationships

•   Business Risk Profile

•   Diverse portfolio of operating segments within the natural gas value chain

•   Strong integration within and between operating segments provides scale advantages

•   Limited cash flow exposure to commodity price volatility

•   Stable and reliable cash flows generated from creditworthy counterparties pursuant to long-term contracts

•   Contracted organic growth projects

•   Credit Profile

•   Business Segment Overview

•   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

•   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

•   Owns/leases approximately 100 Bcf of storage

•   Transportation & Storage Assets

•   Trunkline LNG: Infrastructure

Enhancement Project

•   FGT Phase VIII Expansion

•   FGT Phase VIII Expansion Timeline

•   FGT Pascagoula Lateral

•   Gathering & Processing

•   Located in prolific, long-lived Permian Basin

•   Approximately 4,900 miles of gas and gas liquids pipelines covering 16 counties in West Texas/Southeast New Mexico

•   Two fully-integrated midstream systems (North and South) connected via high-pressure pipelines

•   Four active cryogenic plants and five active treating plants

•   Attractive downstream markets

•   Attractive contract mix:  98%+ POP / Fee-based

•   Map of Operations

•   North System

•   Consists of the Jal and Keystone Systems

–   Large diameter predominately low pressure pipelines

–   Wellhead volumes over 200 MMcfd of 5.0 Gallon per Mcf (GPM) sour gas

–   220 MMcfd cryogenic plant capacity

–   22,400 barrels per day (bpd) NGL production

–   40 tons per day sulfur plant capacity

–   Recent compression and high pressure pipeline upgrades

–   Treating capacity expansion at Jal 3 plant, including acid gas injection well, completed early 2009

•   South System

•   Consists of the Mi Vida, Coyanosa and Tippett Systems

–   High pressure integrated sweet and sour gas gathering system

–   Wellhead volumes over 325 MMcfd

–   190 MMcfd cryogenic processing capacity

–   Plant inlet volume over 160 MMcfd of 3.5 GPM gas with 11,500 bpd  NGL production

–   370 MMcfd treating capacity with 140 MMcfd currently active

•   Grey Ranch System (50% ownership)

–   High CO2 gathering and treating system

–   Earn fixed fee for removing CO2 volumes

–   200 MMcfd current throughput

•   High Pressure Transfer System

•   Diversified, Active Producer Portfolio

•   Gas Supply – Contract Risk Mitigation

•   Substantially eliminated true keep whole exposure

•   Contract structure and operating flexibility enable SUGS to convert significant portion of equity NGL to equity NG during negative frac spread environment

•   POP contract pricing

–   Matches daily priced gas to daily priced NGL

–   Mitigates risk from daily volume swings

•   Producer indemnifications negotiated on many capital intensive projects

•   2009 G&P Assumptions

•   Positive processing spread environment and optimization of Natural Gas Liquid (NGL) recoveries

•   Equity volumes

–   NGL equity volume of 40,000 to 45,000 MMBtu/d equivalent

–   Natural Gas equity volume of 2,500 to 7,500 MMBtu/d

•   Normalized fuel, flared and unaccounted for levels

•   G&P Hedge Portfolio

•   Oct 1 through Dec 31, 2009 hedged positions:

–   35,000 MMBtu/d of NGL equivalent at $14.27

–   5,000 MMBtu/d of natural gas at $3.90

•   2010 positions:

–   25,000 MMBtu/d of natural gas at $5.33

–   20,000 MMBtu/d of NGL equivalent at $10.31

•   2011 positions:

–   20,000 MMBtu/d of natural gas at $6.14

•   SUGS Growth Projects

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

–   Anadarko and Chesapeake continuing drilling

–   Both have reduced the number of rigs in this deep Atoka gas play

•   Bone Springs Rich Gas Play – Loving, Winkler and Ward Counties, Texas

–   Atoka drilling program sparked a shallower Bone Springs oil play

–   Rich 4 GPM gas at rates up to 1 MMcfd per well

–   Requires low pressure systems

–   Drilling programs accelerating with high oil prices

•   Eunice Area Expansion Projects – Lea County, New Mexico

–   Treating expansion project with acid gas injection well completed early 2009

–   Volume growth from active horizontal oil drilling from various producers including Chesapeake, Apache, Range and Bass

–   High margin, rich, sour, low pressure gas

–   Drilling programs accelerating with high oil prices

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

–   Chesapeake is the largest player in the area

–   Recent completions approaching 5 MMcfd per well of lean high CO2 gas

–   Chesapeake indicating it will keep several rigs active in the play

•   Distribution

•   Missouri Gas Energy

–   Provides natural gas to over 500,000 customers

–   Nearly 13,000 miles of main and service lines

–   Filed a $32.4MM annual base rate increase request in April 2009

•   New England Gas Company

–   Provides natural gas to 50,000 customers

–   Nearly 2,000 miles of main and service lines

–   Received $3.7MM in increased annual base rates in February 2009

•   Corporate & Other

•   Corporate segment provides administrative and support functions to business segments and allocates expenses as appropriate

•   Other segment primarily consists of PEI Power Corporation which owns interests in and operates 70 MW of generating assets in the PJM ISO and Fall River Gas Appliance

•   Summary

•   Focus on natural gas related infrastructure

•   Actively managed hedging program helps mitigate volatility in NGL margins

•   Organic growth projects with clear visibility towards earnings and cash flow growth

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