Southeast Texas System

The Southeast Texas System is a 5,200-mile integrated system located in southeast Texas that gathers, compresses, treats, processes and transports natural gas from the Austin Chalk trend. The Southeast Texas System is a large natural gas gathering system covering thirteen counties between Austin and Houston. The system includes the La Grange processing plant, 12 treating facilities and 4 conditioning facilities. This system is connected to the Katy Hub through the East Texas pipeline and is also connected to the Oasis pipeline, as well as two power plants. This allows us to bypass our processing plants and treating facilities when processing margins are unfavorable by blending untreated natural gas from the Southeast Texas System with natural gas on the Oasis pipeline while continuing to meet pipeline quality specifications.

The La Grange processing plant is a cryogenic natural gas processing plant that processes the rich natural gas that flows through our system to produce residue gas and NGLs. The plant has a processing capacity of approximately 240 MMcf/d.

North Texas System

The North Texas System is a 160-mile integrated system located in four counties in North Texas that gathers, compresses, treats, processes and transports natural gas from the Barnett Shale trend. The system includes our Godley processing plant, which processes rich natural gas produced from the Barnett Shale and is integrated with the North Texas System and the ET Fuel System. The facility consists of a cryogenic processing plant and a conditioning facility with aggregrate capacity of 480 MMcf/d and a conditioning facility with capacity of 100 MMcf/d.

Canyon Gathering System

The Canyon Gathering System consists of approximately 1,390 miles of gathering pipeline ranging in diameters from 2 inches to 24 inches in the Piceance and Uinta Basins of Colorado and Utah as well as 5 conditioning plants with an aggregate capacity of 96 MMcf/d.

Northern Louisiana Assets

Our Northern Louisiana midstream assets, which include the Bistineau, Creedence, and Tristate Systems, consist of approximately 240 miles of gathering pipeline in the Haynesville Shale that have multiple interconnects to our 175-mile, 42-inch diameter Tiger Pipeline. These midstream assets have a combined capacity of more than 650 MMcf/d.

West Virginia (Marcellus) Assets

The Bobcat and Jarvisville gathering lines in West Virginia, which were placed in service in 2010, have an aggregate capacity of approximately 250 MMcf/d.

Other Midstream Assets

The midstream segment also includes our interest in various assets located in Texas, Louisiana, and New Mexico, with gathering pipelines aggregating a combined capacity of 115 MMcf/d, as well as one processing facility. We also own gathering pipelines serving the Marcellus Shale in West Virginia with aggregate capacity of approximately 250 MMCf/d.

Marketing Operations

We conduct marketing operations in which we market the natural gas that flows through our assets, referred to as on-system gas. We also attract other customers by marketing volumes of natural gas that do not move through our assets, referred to as off-system gas. For both on-system and off-system gas, we purchase natural gas from natural gas producers and other suppliers and sell that natural gas to utilities, industrial consumers, other marketers and pipeline companies, thereby generating gross margins based upon the difference between the purchase and resale prices of natural gas, less the costs of transportation.

For the off-system gas, we purchase gas or act as an agent for small independent producers that do not have marketing operations. We develop relationships with natural gas producers to facilitate the purchase of their production on a long-term basis. We believe that this business provides us with strategic insight and market intelligence, which may impact our expansion and acquisition strategy.