Steve Baum

Compass Energy

Compass Energy

Gas Prices – where are we headed?

CNG Vehicles

Parent Company – AGL Resources, IncStock Ticker - “GAS”$9.0 Billion in assets

7 Regulated Utilities• 4.5 million customers• 139,000 miles of pipe• 31 Bcf of storage• 5 LNG facilities

3 Unregulated Companies• Sequent – Wholesale (Houston)• Compass Energy – C&I• Southstar – Residential & Small Commercial

SEQUENT

Southstar & Enerchange

LISA DYERCINCINNATI

THE PRICE OF NATURAL GAS

Daily QNGc1 3/25/1999 - 10/3/2012 (NYC)

Line, QNGc1, Trade Price(Last)6/25/2012, 2.708, +0.083, (+3.16%)

PriceUSDMMBTU

.123

3

4

5

6

7

8

9

10

11

12

13

14

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20121990 2000 2010

1,000

1,500

2,000

2,500

3,000

3,500

4,000

11/25 12/23 1/20 2/17 3/17 4/14 5/12 6/9 7/7 8/4 9/1 9/29 10/27 11/24

Bc

f

Source: Energy Information Administration

Natural Gas StorageWorking Gas in Underground Storage: US Lower 48

2010

20072009

2,877 @ 6/1/2012+62 vs. last week+713 vs. last year

5 Yr Avg2008

2011

2012

•Warmest winter on record•Large shale supplies continue to flood the market•Weak Economy

•Strong Gas Fired Power Market•Rig Count Going Down•Wells being shut in

WHERE ARE PRICES GOING?

Daily QNGc1 3/25/1999 - 10/3/2012 (NYC)

Line, QNGc1, Trade Price(Last)6/25/2012, 2.708, +0.083, (+3.16%)

PriceUSDMMBTU

.123

3

4

5

6

7

8

9

10

11

12

13

14

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20121990 2000 2010

Gas Prices are at 20 year lows

Don’t be a hero

Take advantage of these prices now

Never go into a winter unhedged

September - $2.75

http://pixiegas.com/wp-content/uploads/2010/06/cng.jpg

Emissions Reduction in Real Numbers

• Reduces carbon dioxide (CO2) emissions by 20%-30%

• Reduces carbon monoxide (CO) emissions by 70%-90%

• Reduces nitrogen oxide (NOx) emissions by 75%-95%

• Reduction of up to 90% of particle matter (PM) emissions

• Reduces volatile organic compound (VOCs) emissions by 89%

Source: NGVAmerica/DOE/EPA