76063--3/16/2006--PANHANDLE_EASTERN_PIPE_LINE_CO

related topics

{gas, price, oil}

{financial, litigation, operation}

{operation, natural, condition}

{capital, credit, financial}

{cost, regulation, environmental}

Panhandle Energy has substantial debt and depends on its ability to access the capital markets. Credit ratings downgrades would increase Panhandle Energy s financing costs and could limit its ability to access the capital markets. Panhandle Energy is controlled by Southern Union. Panhandle Energy is subject to operating risks. Panhandle Energy 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 Panhandle Energy s results of operations. Panhandle Energy s business is highly regulated. The pipeline business of Panhandle Energy is subject to competition. The success of the pipeline business of Panhandle Energy depends, in part, on factors beyond its control. The success of Panhandle Energy 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 Panhandle Energy. The pipeline business of Panhandle Energy is dependent on a small number of customers for a significant percentage of its sales. The pipeline revenues of Panhandle Energy are generated under contracts that must be renegotiated periodically. Panhandle Energy 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. Panhandle Energy s assets and operations can be affected by weather and other natural phenomena. Cautionary Factors That May Affect Future Results

Full 10-K form ▸

76063--3/16/2006--PANHANDLE_EASTERN_PIPE_LINE_CO_LP