PANHANDLE EASTERN PIPE LINE

AND TRUNKLINE GAS 2014 Customer Meeting

San Antonio, Texas | May 1, 2014

IMPORTANT DISCLOSURES

This communication is based on information which Panhandle Eastern Pipe Line

Company, LP, Sea Robin Pipeline Company, LLC, Trunkline Gas Company, LLC

and Trunkline LNG Company, LLC (collectively, “Company”) believes is reliable.

However, Company does not represent or warrant its accuracy. The statements

and opinions expressed in this communication represent the views of Company

as of the date of this report. These statements and opinions may be subject to

change without notice and Company will not be responsible for any

consequences associated with reliance on any statement or opinion contained in

this communication. Company disclaims any intention or obligation to update

any statements or opinions contained in this communication. This communication

is confidential and may not be reproduced in whole or in part without prior written

permission from Company.

AGENDA • Energy Transfer Update/Overview

Shelley Corman, EVP – Interstate Pipelines

• Gas Electric Coordination Brad Holmes, VP – Market Services

• Supply Update Shannon Spencer, Manager – Market Analysis

• PEPL/TGC Operations & Commercial Update Beth Hickey, VP – Commercial Marketing & Optimization

• Questions/Open Table Session Jackie Butler, Senior Director – Marketing

ENERGY TRANSFER UPDATE/OVERVIEW

Shelley Corman, EVP – Interstate Pipelines

ENERGY TRANSFER ASSETS - 2002

5

Approximately 3,400 miles of natural gas pipelines

ENERGY TRANSFER ASSETS - TODAY

6

ETP Assets

Pipelines

Processing

Storage

Treating

SXL Assets

Pipelines

Terminals

SUG Pipelines

Storage

Trunkline LNG

Note: Assets Shown Exclude SUN Retail and 2014 Regency acquisitions

RGP Assets Pipelines/ Gathering Processing More than 65,000 miles of natural gas, NGL,

crude, and refined products pipelines

ENERGY TRANSFER – BUSINESS TRANSFORMATION

7

Intrastate/Midstream

Interstate Pipeline Build-out

Regency Acquisition

LDH Energy Acquisition

Southern Union Merger

Sunoco Acquisition

Largest Intrastate pipeline system in Texas

FEP, Tiger, TW Phoenix Lateral

Improved presence in major shale plays; enhanced growth platform

Midstream Acquisitions

Susser Acquisition (pending)

Expanded geographic reach (PEPL, TGC, Sea Robin, TLNG, FGT)

Expanded into crude oil and refined product logistics

Increased midstream capabilities with Regency’s acquisitions of Hoover Energy Partners, PVR Partners and Eagle Rock Energy Partners (midstream assets; pending)

Established NGL platform (now Lone Star)

Broadens Sunoco’s retail footprint

ENERGY TRANSFER CORPORATE STRUCTURE

8

ENERGY TRANSFER EQUITY, L.P. (NYSE: ETE)

SUNOCO LOGISTICS PARTNERS L.P.

(NYSE: SXL)

ENERGY TRANSFER PARTNERS, L.P. (NYSE: ETP)

REGENCY ENERGY PARTNERS LP (NYSE: RGP)

Blue denotes Publicly Traded Partnership

LP Interest, GP Interest, IDRs LP Interest, GP Interest, IDRs, Class H Units*

LP Interest, GP Interest, IDRs

Gathering and Processing

Contract Compression and Treating

Joint Ventures

Lone Star NGL

Intrastate Transportation

and Storage

Interstate Transportation

and Storage

Midstream

NGL Transportation and Services

70% Interest 30% Interest

Refined Product

Pipelines

Terminal Facilities

Crude Oil Pipelines

Crude Oil Acquisition

and Marketing

Sunoco, Inc. Retail

Marketing

*Class H Units track 50% of the SXL GP and IDR economics

ENERGY TRANSFER INTERSTATES CONNECTING SUPPLY AND MARKET

10

Fayetteville Express

Tiger

Trunkline

Florida Gas

Sea Robin

Transwestern

Shale Supply

1

FGT Phase VIII

Demand: 1. Power 2. Industrial 3. Exports

TW Phoenix Lateral

1

1, 2

1, 2, 3 3

1

TRUNKLINE ABANDONMENT

11

• Initial FERC filing for abandonment – 7/26/2012

• FERC issued EA – 4/15/2013

• FERC approved abandonment – 11/7/2013

• TC filed implementation plan – 1/6/2014

• FERC approved implementation plan – 2/12/2014

• Abandonment no later than 11/2014

LAKE CHARLES LIQUEFACTION

12

• DOE FTA Approval – July 22, 2011

• DOE Non-FTA Approval – August 7, 2013

• PDA – October 1, 2013

• FERC Filing – March 25, 2014

• FID – 2015

• Commencement of Construction anticipated in 2015

• First shipment anticipated in 2019

GAS ELECTRIC COORDINATION

Brad Holmes, VP – Market Services

FERC INITIATIVE GAS & ELECTRIC COORDINATION

• In February 2012, FERC issued a notice (Docket AD12-12) for comment on gas-electric interdependence

• Five regional technical conferences were held through the summer of 2012. The conferences explored scheduling and market structures; communications, coordination and information sharing; reliability concerns

• Regional conferences spurred further technical conferences in 2013:

– February 13th – Improving communications and data sharing

– April 25th – Gas and electric trading day differences and scheduling

– May 16th – RTO and ISO update on winter operations

15

FERC INITIATIVE GAS & ELECTRIC COORDINATION

• Communications NOPR (Docket RM13-17) – July 2013

– Provide authority for interstate pipes and utilities that transmit electricity to share non-public, operational information for the purpose of promoting reliable service or operational planning for either party

• Natural Gas Council (representation from major gas groups)

– Reviewing Gas Day, Timely Nomination deadline, additional nomination cycles, changes to the No-Bump rules

16

FERC INITIATIVES ISSUED MARCH 20, 2014

• RM14-2

– Start of the Gas Day to 4:00 a.m.

– Timely Nomination deadline to 1:00 p.m.

– Two additional Intraday cycles

– Multi party transportation contracts for aggregated firm service

• FPA Section 206

– ISO’s and RTO’s must file to adjust the posting of day ahead energy market and reliability unit commitments

• NGA Section 5 Show Cause

– Interstate pipelines must make compliance filings by May 19th to revise their tariffs to provide for the posting of offers to purchase capacity

17

CURRENT NAESB NOMINATION AND SCHEDULING TIMELINE

18

Nomination Cycle

Nomination Deadline (CCT)

Notification of Schedule (CCT)

Nomination Effective (CCT)

Bumping of Interruptible Transmission (IT)

Timely 11:30 a.m. 4:30 p.m. 9:00 a.m. Next Day N/A

Evening 6:00 p.m. 10:00 p.m. 9:00 a.m. Next Day Yes

Intra-Day 1 10:00 a.m. 2:00 p.m. 5:00 p.m. Current Day Yes

Intra-Day 2 5:00 p.m. 9:00 p.m. 9:00 p.m. Current Day No

FERC PROPOSED NOMINATION AND SCHEDULING TIMELINE

19

Nomination Cycle

Nomination Deadline (CCT)

Notification of Schedule (CCT)

Nomination Effective (CCT)

Bumping of Interruptible Transportation (IT)

Timely 1:00 p.m. 4:30 p.m. 4:00 a.m. Next Day N/A

Evening 6:00 p.m. 10:00 p.m. 4:00 a.m. Next Day Yes

Intra-Day 1 8:00 a.m. 11:00 a.m. 12:00 p.m. Current Day Yes

Intra-Day 2 10:30 a.m. 2:00 p.m. 4:00 p.m. Current Day Yes

Intra-Day 3 4:00 p.m. 6:00 p.m. 7:00 p.m. Current Day Yes

Intra-Day 4 7:00 p.m. 9:00 p.m. 9:00 p.m. Current Day No

PROPOSED NOMINATION AND SCHEDULING TIMELINES

20

ISO/RTO Time for Submission of Bids (CCT)

Time for Publication of Day-Ahead Commitment Bids (CCT) (Market Clearing Time)

California Independent System Operator Corporation (CAISO) 12:00 p.m. 3:00 p.m.

ISO New England Inc. (ISO-NE) 9:00 a.m. 12:30 p.m.

PJM Interconnection, LLC (PJM) 11:00 a.m. 3:00 p.m.

Midcontinent Independent System Operator, Inc. (MISO) 10:00 a.m. 2:00 p.m.

New York Independent System Operator, Inc. (NYISO) 4:00 a.m. 10:00 a.m.

Southwest Power Pool, Inc. (SPP) 11:00 a.m. 4:00 p.m.

CURRENT ISO AND RTO SCHEDULES

21

TIMELINES (BASED ON A FEDERAL REGISTER PUBLICATION DATE OF APRIL 1, 2014)

• RM14-2

– NAESB process – 180 days to reach consensus

– If no consensus, comments filed in 240 days

• FPA Section 206

– Interventions due by April 10, 2014

• NGA Section 5 Show Cause

– All interstates must make compliance filings by May 19, 2014

22

NAESB SCHEDULE GAS ELECTRIC HARMONIZATION (GEH) FORUM

• April 3rd - NAESB Board of Directors Meeting

– GEH recommendations to change the annual plan and identify standards that would require changes to support the Rule Making

• From April 4th to June 5th - GEH Forum Meetings

• June 6th – BOD review and vote on Alternative Consensus Proposal

• June 9th – Status report to FERC if no consensus is reached

• July 18th – Complete recommendation to support consensus standards

• August 22nd – WGQ review of recommendations

• September 29th – NAESB files Consensus Standards with FERC

23

TOP ISSUES AS IDENTIFIED AT FIRST NAESB MEETING

• Gas Day Start

• Intraday Nominations 3 vs. 4

• Time of Last Bumping Cycle

• Cycle Times / Overlap / Reaction

• Clean-up / Post-op Nominations

• Capacity Release Changes

• Primary Firm vs. Secondary Out-of-Path

• EPSQ Flexibility

• Energy Day / Multiple Energy Days

• Electric Market Clearing Timelines

24

QUESTIONS?

25

SUPPLY UPDATE Shannon Spencer, Manager – Market Analysis

KEY SHALE PLAYS

28

Utica

Fayetteville Woodford

Barnett

Eagle Ford

Haynesville

Marcellus: from 0 to 10 Bcf/day in 5 years

GROWTH DRIVERS – DRILLING EFFICIENCIES

29

Breakeven Costs in Key Plays

Producers are continually bringing down costs: • Reduced drilling times • Longer laterals • Targeting the most productive parts of the plays; “stacked pay zones” • Pad drilling

Fewer rigs are delivering more gas – this trend is expected to continue

By 2018 the average shale gas rig could produce ~ 3 times more gas than 2008

GROWTH DRIVERS – MARCELLUS & UTICA

30

Marcellus production forecasts continue to be adjusted upward Utica results mixed, production expected to ramp up with infrastructure By the end of 2015: • Marcellus - 15.6 Bcf/d • Utica - 2.6 Bcf/d

Marcellus Production Forecast April 2014

Source: Wood Mackenzie

March Outlook

GROWTH DRIVERS - ASSOCIATED GAS

31

• WPX Energy: “Beast” well –1 Bcf in the first 100 days

• Drilling times have come down by as much as 43%

• Breakeven in the drier areas ~ $4 • Niobrara – the next Bakken?

• One of Encana’s 5 focus areas

• Anadarko planning 600/d new processing capacity

• Noble Energy working on pod-style development program

Piceance and Denver (DJ) Basins

32

• Emerging shale play covering 6.6 million acres in Louisiana and Southern Mississippi

• Studies say it could hold between 7 and 9 billion barrels of oil (Bakken ~7-8 billion)

• >90% oil; high BTU gas • Active producers are EnCana,

Goodrich Petroleum, Sanchez Energy, and EOG Resources

• Some are switching rigs here from Texas

• Mixed results, but producers are renewing 5-year leases

Tuscaloosa Marine Shale

GROWTH DRIVERS – ASSOCIATED GAS

33

Associated Gas Production Forecast through 2020

Eagle Ford

Permian – Tight Oil

Permian –Other

Bakken

All Other

Source: Wood Mackenzie

U.S. associated gas set to grow by 6 Bcf/d between now and 2020 Texas bragging rights: • If the state were a separate

nation, it would be the 9th largest oil-producing country in the world

• It currently has 48% of the country’s drilling rigs

GROWTH DRIVERS – ASSOCIATED GAS

GROWTH DRIVERS – EMERGING OKLAHOMA PLAYS

34

As producers have shifted focus toward liquids production, areas within the Anadarko basin - primarily Oklahoma – are yielding impressive results and garnering much attention. Most shale drilling in the state has yielded natural gas. But oil output has risen by over 100,000 barrels/day over the past two years, reaching a near 25-year high in late 2013 Producers are getting creative with nicknames for the new multi-resource plays

35

EMERGING OKLAHOMA PLAYS “SCOOP”

• Named by Continental Resources in late 2012 • Over 3,000 acres in the Woodford shale • Lies underneath oil fields that have been drilled over the last 100 years • Contains oil, gas and condensates • Between 25 – 50% gas; > 40% rate of return

South Central Oklahoma Oil Province

36

EMERGING OKLAHOMA PLAYS “STACK”

• Named by Newfield Exploration in November 2013 • The play's “stacked” nature provides access to multiple “pay zones” • Combines the Meramec (Mississippian) and Woodford Shale formations • 70% liquids (40% oil); >35% rate of return

STACK

OKLAHOMA STACKED FORMATIONS

37

Tonkawa Cottage Grove

Cleveland Marmaton Cherokee

Atoka

Meramec Lime Osage Lime

Sycamore Lime

Woodford Hunton

Gra

nite

Was

h

38

SCOOP AND STACK – 2013 ACTIVITY

Pie chart size varied by total EUR. Source: Wood Mackenzie

Charter Oak Citation Continental Devon Eagle Rock Marathon Newfield

Operator

Well Production Stream by Type (pie chart)

Oil NGL Gas

39

EMERGING OKLAHOMA PLAYS “NOMP”

• Chaparral Energy is key player, planning up to 45 wells this year • 40-50% oil; > 30% rate of return

Northern Oklahoma Mississippi Play

OKLAHOMA GAS PRODUCTION

Now at the highest level since the early 1990s

40

5.62 5.87

0

1

2

3

4

5

6

7

Bcf

/day

Oklahoma Marketed Natural Gas

Source: EIA

PANHANDLE – NEW/EXPANDED SUPPLY CONNECTIONS

41

More than 1 Bcf/d of new receipt capacity

DCP (200MM) 4Q ‘12

Atlas (425 MM) 3Q ‘13

Caballo Eagle Chief (120 MM) 3Q ‘13

Enable (200MM) 4Q’13

Mid-America (175 MM) 2Q ‘14

NGP Processing Plant 4Q 2014

SemGas (150 MM) 3Q ‘13

Superior (50MM) 3Q ‘13

OK

KS

TX

US SUPPLY GROWTH

42

20+ Bcf/d growth over next 10 years

Source: Wood Mackenzie

Growth escalates

starting 2016

SUPPLY GROWTH – THE NEXT FIVE YEARS

43 43

Five Year Production Change (through 2018)

Gulf Coast -2.53

- Gulf of Mex

+0.22 Eagle Ford

+2.09

Haynesville +2.00

Barnett -0.12

Fayetteville +0.67

Rockies +1.34

Permian +0.63

San Juan -0.36

MidCont +0.74

Utica +2.46

Marcellus (and other NE)

+4.30

West Coast +0.11

Growth

+1.72 Bcf/d

+3.07 Bcf/d

+6.75 Bcf/d

Source: Wood Mackenzie

Decline

SUPPLY GROWTH – FIVE YEARS AFTER THAT

44 44

Gulf Coast -0.03

- Gulf of Mex

0.00 Eagle Ford

+1.71

Haynesville +0.56

Barnett +0.29

Fayetteville +1.28

Rockies +2.18

Permian +0.63

San Juan +0.04

MidCont +0.71

Utica +1.27

Marcellus (and other NE)

+2.66

West Coast -0.04

+2.82 Bcf/d

+3.52 Bcf/d

+3.92 Bcf/d

Source: Wood Mackenzie

Growth Decline

Five Year Production Change (2019 through 2023)

PEPL/TGC OPS/COMMERCIAL UPDATE

Beth Hickey, VP – Commercial Marketing & Optimization

STATEWIDE TEMP RANKS OCT 2013-MAR 2014

-20

-10

0

10

20

30

40

50

1/1

/20

14

1/3

/20

14

1/5

/20

14

1/7

/20

14

1/9

/20

14

1/1

1/2

01

4

1/1

3/2

01

4

1/1

5/2

01

4

1/1

7/2

01

4

1/1

9/2

01

4

1/2

1/2

01

4

1/2

3/2

01

4

1/2

5/2

01

4

1/2

7/2

01

4

1/2

9/2

01

4

1/3

1/2

01

4

2/2

/20

14

2/4

/20

14

2/6

/20

14

2/8

/20

14

2/1

0/2

01

4

2/1

2/2

01

4

2/1

4/2

01

4

2/1

6/2

01

4

2/1

8/2

01

4

2/2

0/2

01

4

2/2

2/2

01

4

2/2

4/2

01

4

2/2

6/2

01

4

2/2

8/2

01

4

Temp

32 Deg Freezing

PEPL AVERAGE SYSTEM TEMPERATURE

51

11 Consecutive Days Below

Freezing

9 Consecutive Days Below

Freezing

STATS ON WEATHER ALERTS

53

Weather Alert Notices

Restriction Days OFO? FM

Panhandle Pipe Line 5 19

Trunkline Gas 5 19

Others 2 to 16 4 to 64

SCHEDULING ALERTS – “HEADS-UP”

• Intraday scheduling reductions will be implemented to ensure that nominations match actual flowing quantities.

• All delivery point operators are required to keep actual daily takes out of

the system less than or equal to scheduled quantities regardless of their cumulative imbalance position.

• All receipt point operators are required to keep actual daily receipts into

the system greater than or equal to scheduled quantities regardless of their cumulative imbalance position.

• All storage customers are requested to stay at or below their Maximum

Daily Withdrawal Quantity (MDWQ). Storage customers should adjust flowing volumes to remain at or below these limits.

• Panhandle will limit Auto-Unpark nominations on the pipeline for the

duration of the extreme weather. These limits will be evaluated on a daily basis.

54

SCHEDULING ALERTS – LIMITING CONTRACT FLEXIBILITY

• Panhandle is requesting all Shippers under Rate Schedule EFT, EIT, SCT, GDS or LFT to limit their hourly deliveries to one-sixteenth of the quantity scheduled for delivery on the applicable day.

• All Interruptible and Out of Path nominations will NOT be scheduled. • Intraday scheduling reductions will be implemented to ensure that nominations match actual

flowing quantities. • All delivery point operators are required to keep actual daily takes out of the system less than

or equal to scheduled quantities regardless of their cumulative imbalance position. • All receipt point operators are required to keep actual daily receipts into the system greater

than or equal to scheduled quantities regardless of their cumulative imbalance position. • All storage customers are requested to stay at or below their Maximum Daily Withdrawal

Quantity (MDWQ). Storage customers should adjust flowing volumes to remain at or below these limits.

• Panhandle will limit Auto-Unpark nominations on the pipeline for the duration of the extreme

weather. These limits will be evaluated on a daily basis.

55

PEPL FIELD ZONE TO MICHCON WINTER TRANSPORTATION SPREAD

59

Max Min Avg

2013-14 30.71$ (15.57)$ 2.38$

2012-13 0.32$ (0.08)$ 0.08$

2011-12 0.33$ (0.04)$ 0.13$

2010-11 0.44$ (1.07)$ 0.09$

TRUNKLINE Z1A TO CONSUMERS GAS WINTER TRANSPORTATION SPREAD

60

Max Min Avg

2013-14 32.47$ 0.04$ 3.38$

2012-13 0.31$ 0.06$ 0.16$

2011-12 0.25$ 0.02$ 0.15$

2010-11 0.30$ 0.02$ 0.14$

1,200,000

1,250,000

1,300,000

1,350,000

1,400,000

1,450,000

1,500,000

1,550,000

1,600,000

09 10 11 12 13 09 10 11 12 13 10 11 12 13 14 10 11 12 13 14 10 11 12 13 14

November December

January February March

WINTER PEAK DAYS THROUGH HOUSTONIA

WINTER PEAK DAYS THROUGH INDEPENDENCE

600,000

800,000

1,000,000

1,200,000

1,400,000

09 10 11 12 13 09 10 11 12 13 10 11 12 13 14 10 11 12 13 14 10 11 12 13 14

November December

January February March

GREAT LAKES ICE COVER 88%

66

AVERAGE WINTER ICE COVERAGE

67

THIS WINTER ICE COVERAGE

68

LATE SEASON ICE COVERAGE

69

CUSTOMER STORAGE

73

POLAR VORTEX

SUSTAINED POLAR VORTEX

77

HOW CAN WE HELP YOU BE PREPARED FOR NEXT WINTER…

• Storage services

– Field Zone

– Market Zone

• Transportation Services

– PEPL long haul

– PEPL short haul

– TGC

• Combination

78

LET’S TALK A LITTLE SUMMER

• Extensive summer maintenance schedule on PEPL and TGC

• Posting include regular ongoing maintenance in addition to our pipeline integrity program

• Postings indicate work with the potential to impact shippers

• Any potential firm service interruption will have corresponding critical posting

• Outage schedule found on our website

• Outage schedule is updated weekly

79

PIPELINE MAINTENANCE

80

Pipeline maintenance

IMPLEMENTATION OF ENHANCED PIPELINE INTEGRITY PROGRAM

• Continuation of the regulatory required integrity management and assessment plan within HCA’s

• Plus comprehensive long-term plan for all pipeline facilities and all integrity threats

• Multi-year plan for in line inspections/hydrotest/anomaly investigations

• Maintain/improve prevention and mitigation strategies for various threats with particular attention to external corrosion

• Apply lessons learned from incidents across the entire system including other interstate and intrastate pipeline systems

81

WHAT DOES THIS MEAN TO YOU…

• 2014 HCA and System Integrity Projects Planned

– 801 miles in-line inspections (26 segments)

• PEPL 492 miles (22 segments)

• TGC 309 miles (4 segments)

– 70 scheduled anomaly investigations

• PEPL 57 anomaly excavations

• TGC 13 anomaly excavations

– 131 miles of hydrostatic pressure testing (13 segments)

• PEPL 129 miles (11 segments)

• TGC 2 miles (2 segments)

82

WHAT DOES THIS MEAN TO YOU…

83

ULTIMATELY SAFER AND MORE RELIABLE PIPELINES SERVING

YOUR MARKETS

QUESTIONS/ OPEN TABLE SESSION

Jackie Butler, Senior Director – Marketing

How did your system perform?

PAST WINTER – LESSONS LEARNED

• Demand levels

• Planning/forecasting

• Facilities

What were your biggest challenges during this past winter?

What lessons were learned?

What would you do differently next time?

GAS/ELECTRIC COORDINATION

What gas and/or electric industry changes (services and/or facilities) would promote greater use of natural gas for electric generation in your region?

What issues/challenges do you anticipate with proposed changes to the gas day and nominations cycles?

How did the past winter’s capacity restrictions and/or limited secondary capacity affect electric reliability and/or cost in your region?

WE THANK YOU FOR YOUR BUSINESS AND HOPE YOU ENJOY

THE REST OF YOUR STAY.