Description of Business

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements [Abstract]

Corporate Structure

1. Corporate Structure

Panhandle is primarily engaged in the interstate transportation and storage of natural gas and also provides LNG terminalling and regasification services. The Company is subject to the rules and regulations of the FERC. The Company's entities include the following:

• PEPL, an indirect wholly-owned subsidiary of Southern Union Company;
• Trunkline, a direct wholly-owned subsidiary of PEPL;
• Sea Robin, an indirect wholly-owned subsidiary of PEPL;
• LNG Holdings, an indirect wholly-owned subsidiary of PEPL;
• Trunkline LNG, a direct wholly-owned subsidiary of LNG Holdings; and
• Southwest Gas Storage, a direct wholly-owned subsidiary of PEPL.

The Company's pipeline assets include approximately 10,000 miles 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 region. The pipelines have a combined peak day delivery capacity of 5.5 Bcf/d and approximately 68.1 Bcf of owned underground storage capacity. The Company also owns and operates an LNG import terminal located on Louisiana's Gulf Coast, and has 9.0 Bcf of above ground LNG storage capacity.

Southern Union Panhandle, LLC, a direct wholly-owned subsidiary of Southern Union Company, serves as the general partner of PEPL and owns a one percent general partnership interest in PEPL. Southern Union Company owns a ninety-nine percent limited partnership interest in PEPL.

See Note 3 – ETE Merger for information related to Southern Union's intent to merge with ETE.