Description of Business

9 Months Ended

Sep. 30, 2012

DESCRIPTION OF BUSINESS:

Southern Union owns and operates assets in the regulated and unregulated natural gas industry and is primarily engaged in the gathering, treating, processing, transportation, storage and distribution of natural gas in the United States. The Company operates in three reportable segments as follows:


•	Transportation and Storage — The Transportation and Storage segment is primarily engaged in the interstate transportation and storage of natural gas, and also provides LNG terminalling and regasification services. Its operations expand from the Gulf Coast region throughout the Midwest and Great Lakes region.

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Gathering and Processing — The Gathering and Processing segment is primarily engaged in connecting wells of natural gas producers to its gathering system, treating natural gas to remove impurities to meet pipeline quality specifications, processing natural gas for the removal of NGL, and redelivering natural gas and NGL to a variety of markets. Its operations are located in West Texas and Southeast New Mexico.


•	Distribution — The Distribution segment is primarily engaged in the local distribution of natural gas in Missouri and Massachusetts.

See Note 3 for information related to the Company’s merger with ETE and the completion of the Holdco Transaction.