Morgan Stanley

Corporate Access Day

March 16, 2010

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

Company Facts

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 5,500 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 six active treating plants

–   Restarted Mi Vida treating facility in February 2010

–   Expect to restart Halley processing plant in 4Q2010

•   Attractive downstream markets

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

Map of Operations

North System

•   Consists of the Jal and Keystone Systems

–   Low pressure integrated sour gas gathering systems

–   Average processed volumes over 200 MMcfd

–   22,000+ barrels per day (bpd) NGL production

–   225 MMcfd cryogenic processing capacity

–   325 MMcfd sour gas treating capacity

–   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 systems

–   Average wellhead volumes 270 MMcfd

–   Average processed volumes 170 MMcfd

–   11,000+ bpd  NGL production

–   190 MMcfd cryogenic processing capacity

–   250 MMcfd sour gas treating capacity

•   Grey Ranch System (50% ownership)

–   High CO2 gathering and treating system

–   Earn fixed fee for removing CO2 from gas

–   200 MMcfd treating capacity

High Pressure Transfer System

Gas Supply

•   Substantially eliminated true keep whole exposure

•   Changed gas pricing mechanism – First of Month to Gas Daily

–   Matches daily priced gas to daily priced NGL’s

–   Mitigates risk from daily volume swings

•   Producer indemnifications negotiated on many capital intensive projects

2010 Growth Opportunities

Gathering & Processing Assumptions

•   Positive processing spread environment encourages optimal Natural Gas Liquid recoveries; Normalized fuel, flare and unaccounted-for volumes

•   2010 projected equity volumes

–   Natural Gas Liquids equivalent of 40,000 to 45,000 MMBtu/d

–   Natural Gas of 7,000 to 15,000 MMBtu/d

•   2010 hedge positions

–   40,000 MMBtu/d of NGL equivalent at $10.44

–   5,000 MMBtu/d of natural gas $5.33

•   2011 hedge positions

–   25,000 MMBtu/d of NGL equivalent at $11.63

Distribution

•   Missouri Gas Energy

–   Provides natural gas to over 500,000 customers

–   Nearly 13,000 miles of main and service lines

–   Received a $16.2MM annual base rate increase effective February 28, 2010

•   New rate design eliminates impact of weather or conservation on margin for residential and small general service customer classes

•   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 75 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

2010 Financial Outlook

2010 Outlook

•   2010 adjusted net earnings per share of $1.75 to $1.95

•   2010 reported net earnings per share of $1.92 to $2.12

EPS Reconciliation

2010 Consolidated Adjusted EBITDA

2010 Adjusted Segment EBITDA

2010 Adjusted EBITDA by Segment

2010 Net Capital Expenditure Guidance

SUG General Assumptions

•   Approximately 125 million weighted average diluted shares outstanding

•   Effective income tax rate of 30.3%

•   Interest expense, net of capitalized interest, approximately $225 to $235 million

Reg. G Reconciliation

Reg. G Reconciliation – continued