OPERATIONS AND ORGANIZATION:

Panhandle and its subsidiaries are primarily engaged in the interstate transportation and storage of natural gas and are subject to the rules and regulations of the FERC. The Company’s entities include the following:


•	PEPL, which is wholly-owned by SUG Holding Company, an indirect wholly-owned subsidiary of ETP;


•	Trunkline, a direct wholly-owned subsidiary of PEPL;


•	Sea Robin, an indirect wholly-owned subsidiary of PEPL; and


•	Southwest Gas, a direct wholly-owned subsidiary of PEPL.

The Company’s operations currently consist of interstate pipelines that transport natural gas from the Gulf of Mexico, South Texas and the panhandle regions of Texas and Oklahoma to major U.S. markets in the Midwest and Great Lakes regions, as well as owning underground storage capacity.

Southern Union Panhandle LLC, an indirect wholly-owned subsidiary of ETP, serves as the general partner of PEPL and owns a 1% general partnership interest in PEPL. ETP also indirectly owns a 99% limited partnership interest in PEPL.

See Note 3 for information related to the Panhandle Merger. We have accounted for this transaction as a reorganization of entities under common control; therefore, the consolidated financial statements of the Company were retrospectively adjusted to consolidate Southern Union for all periods. As a result of this retrospective consolidation, the Company’s consolidated results of operations for the year ended December 31, 2013, the period from March 26 to December 31, 2012 and the period from January 1 to March 25, 2012 include Southern Union’s former natural gas gathering and processing operations, which were contributed to an affiliate in 2013 as discussed in Note 3, and Southern Union’s former local distribution operations, which were sold in 2013 and were presented as discontinued operations as discussed in Note 3.

Certain prior period amounts have been reclassified to conform to the 2014 presentation. These reclassifications had no impact on net income or total equity.

Lake Charles LNG was previously named Trunkline LNG Company, LLC, and changed its name in September 2014 to Lake Charles LNG Company, LLC. All references to this company throughout this document reflects the new name of the company, regardless of whether the disclosure relates to periods or events prior to the dates of the name change.