Profile: AGL Resources Inc. (AGL)

AGL Resources Inc. (AGL Resources) is an energy services holding company, which is engaged in the distribution of natural gas in six states: Florida, Georgia, Maryland, New Jersey, Tennessee and Virginia. It is also engaged in the retail natural gas marketing to the customers in Georgia; natural gas asset management and related logistics activities for each of the utilities, as well as for non-affiliated companies; natural gas storage arbitrage and related activities, and the development and operation of natural gas storage assets. The Company also owns and operates a telecommunications business that constructs and operates conduit and fiber infrastructure within select metropolitan areas. AGL Resources operates in four segments: distribution operations, retail energy operations, wholesale services and energy investments, and a non-operating corporate segment.

Distribution Operations

The distribution operations segment includes six natural gas local distribution utilities. These utilities construct, manage and maintain intrastate natural gas pipelines and distribution facilities. It includes Atlanta Gas Light in Georgia, Chattanooga Gas in Tennessee, Elizabethtown Gas in New Jersey, Elkton Gas in Maryland, Florida City Gas in Florida and Virginia Natural Gas in Virginia. Atlanta Gas Light’s role includes distributing natural gas for marketers; constructing, operating and maintaining the gas system infrastructure, including responding to customer service calls and leaks; reading meters and maintaining underlying customer information for marketers, and planning and contracting for capacity on interstate transportation and storage systems.

Retail Energy Operations

The retail energy operations segment consists of SouthStar Energy Services LLC (SouthStar), a joint venture owned 85% by the Company’s subsidiary, Georgia Natural Gas Company, and 15% by Piedmont Natural Gas (Piedmont). SouthStar markets natural gas and related services under Georgia Natural Gas to retail customers on an unregulated basis in Georgia, as well as Ohio and Florida. In addition, SouthStar markets gas to commercial and industrial customers in Alabama, Tennessee, North Carolina, South Carolina and Georgia.

Wholesale Services

The wholesale services segment consists primarily of Sequent Energy Management, L.P. (Sequent), a subsidiary involved in asset management and optimization, storage, transportation, producer and peaking services and wholesale marketing. Sequent provides its customers with natural gas from the producing regions and market hubs in the United States and Canada. Sequent’s asset management customers include affiliated and non-affiliated utilities, municipal utilities, power generators and industrial customers. Sequent’s producer services business focuses on aggregating natural gas supply from various small and medium-sized producers located throughout the natural gas production areas of the United States.

Energy Investments

The energy investments segment includes businesses that are related and complementary to the primary business. It includes natural gas storage business, which develops, acquires and operates salt-dome and other storage assets in the Gulf Coast region of the United States. Jefferson Island Storage & Hub, LLC (Jefferson Island), the Company’s wholly owned subsidiary operates a salt dome storage and hub facility in Louisiana, approximately eight miles from the Henry Hub and consists of two salt dome storage caverns.

AGL Networks, LLC (AGL Networks), the Company’s wholly owned subsidiary provides telecommunications conduit and available for use or dark fiber optic cable. AGL Networks leases and sells its fiber to a range of customers in the Atlanta, Georgia, Phoenix, Arizona and Charlotte, North Carolina metropolitan areas in the United States. Its customers include local, regional and national telecommunications companies, Internet service providers, educational institutions and other commercial entities. AGL Networks provides underground conduit and dark fiber to its customers under leasing arrangements with terms that vary from one to twenty years. In addition, AGL Networks offers telecommunications construction services to its customers.

Corporate

The corporate segment includes the nonoperating business units. AGL Services Company is a service company established to provide certain centralized shared services to the operating segments. AGL Capital Corporation (AGL Capital), the wholly owned finance subsidiary provides for ongoing financing needs through a commercial paper program, the issuance of various debt and hybrid securities, and other financing arrangements. The corporate segment also includes intercompany eliminations for transactions between the operating business segments.