76063--3/1/2007--PANHANDLE_EASTERN_PIPE_LINE_CO

related topics

{gas, price, oil}

{financial, litigation, operation}

{capital, credit, financial}

{operation, natural, condition}

{competitive, industry, competition}

{cost, regulation, environmental}

{customer, product, revenue}

The Company has substantial debt and depends on its ability to access the capital markets. Credit ratings downgrades could increase the Company s financing costs and could limit its ability to access the capital markets. The Company is controlled by Southern Union. The Company is subject to operating risks. The Company is subject to extensive federal, state and local laws and regulations regulating the environmental aspects of its business that may increase its costs of operations, expose it to environmental liabilities and require it to make material unbudgeted expenditures. Terrorist attacks, such as the attacks that occurred on September 11, 2001, have resulted in increased costs, and the consequences of the War on Terror and the Iraq conflict may adversely impact the Company s results of operations. The Company s business is highly regulated. The pipeline business of the Company is subject to competition. The success of the pipeline business of the Company depends, in part, on factors beyond its control. The success of the Company depends on the continued development of additional natural gas reserves in the vicinity of its facilities and its ability to access additional reserves to offset the natural decline from existing wells connected to its system. Fluctuations in energy commodity prices could adversely affect the business of the Company. The pipeline business of the Company is dependent on a small number of customers for a significant percentage of its sales. The pipeline revenues of the Company are generated under contracts that must be renegotiated periodically. The Company is exposed to the credit risk of its customers in the ordinary course of business. Substantial risks are involved in operating a natural gas pipeline system. Cautionary Factors That May Affect Future Results

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76063--3/1/2007--PANHANDLE_EASTERN_PIPE_LINE_CO_LP