

9.	SUBSEQUENT EVENT

On January 11, 2013, Laclede Gas, Laclede Group, and Southern Union Company (SUG), an affiliate of Energy Transfer Equity, L.P. and Energy Transfer Partners, L.P. , entered into an Assignment and Assumption Agreement pursuant to which Laclede Gas Company assumed all duties and obligations of a purchase and sale agreement entered into by a wholly owned subsidiary of Laclede Group on December 14, 2012 to acquire from SUG substantially all of the assets and liabilities of Missouri Gas Energy (MGE). MGE is engaged in the distribution of natural gas on a regulated basis in western Missouri. Additionally, pursuant to the Assignment and Assumption Agreement, Laclede Gas assumed responsibility for an Employee Agreement entered into by Laclede Group and SUG that provides for the terms and conditions of its employment of persons currently employed by MGE.

The stated purchase price of the MGE transaction is $975 million in cash, subject to customary closing adjustments. The transaction is supported by a fully committed $1.020 billion bridge facility with Wells Fargo Bank, National Association, which has subsequently been syndicated to a group of nine banks, as well as existing company cash. The permanent financing is anticipated to be a combination of long-term debt and equity securities.

This transaction is expected to close before the end of fiscal year 2013, subject to customary closing conditions, including regulatory approvals from the MoPSC. On January 14, 2013, the Utility filed an application with the MoPSC for approval to acquire the assets of MGE from SUG. On January 22, 2013, the Federal Trade Commission notified the Utility of the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. No shareholder approval is required to complete the transaction, and each of the entities has received all necessary approvals from their boards of directors.

The purchase and sale agreement contains certain termination rights for both Laclede Gas (as assigned) and SUG, including, among others, the right to terminate if the transaction is not completed by October 14, 2013 (subject to up to four 30-day extensions under certain circumstances related to obtaining required regulatory approvals). In the event that SUG terminates as a result of the failure of Laclede Gas to obtain financing, it may be required to pay SUG a "reverse break up" fee of $73.1 million, which amount will operate as liquidated damages and a cap on such liability for such breach.

As a result of the MGE acquisition being assigned to the Utility, beginning in the second quarter of fiscal year 2013, Laclede Gas will incur or be allocated applicable acquisition expenses associated with this transaction.