Profile: The Laclede Group, Inc. (LG)

The Laclede Group, Inc. (Laclede Group) is a public utility holding company. The Company provides natural gas service through its regulated core utility operations, while engaging in non-regulated activities. The Company operates in three segments: Regulated Gas Distribution, Non-Regulated Gas Marketing and Other. The Regulated Gas Distribution segment consists of the regulated operations of Laclede Gas Company (Laclede Gas or the Utility) and is the core business segment of Laclede Group. The Non-Regulated Gas Marketing segment includes the results of Laclede Energy Resources, Inc. (LER), a subsidiary engaged in the non-regulated marketing of natural gas and related activities. Other includes Laclede Pipeline Company’s transportation of liquid propane regulated by the Federal Energy Regulatory Commission (FERC), as well as non-regulated activities, including real estate development, the compression of natural gas and financial investments in other enterprises.

Regulated Gas Distribution

The Utility focuses its gas supply portfolio around a number of natural gas suppliers with equity ownership or control of assets situated to complement the Company’s transportation arrangements. Laclede Gas utilizes both Mid-Continent and Gulf Coast gas sources to provide a level of supply. In fiscal year ended September 30, 2009 (fiscal 2009), Laclede Gas purchased natural gas from 26 different suppliers to meet gas sales and storage injection requirements. Natural gas purchased by Laclede Gas for delivery to its utility service area through the Mississippi River Transmission Corporation (MRT) system totaled 60.2 billion cubic feet. The Utility also holds firm transportation on several other interstate pipeline systems that provide access to gas supplies upstream of MRT. In addition to deliveries from MRT, 10 billion cubic feet of gas was purchased on the Panhandle Eastern Pipe Line Company system and 10.8 billion cubic feet on the Southern Star Central Pipeline system. Some of the Utility’s commercial and industrial customers purchased their own gas and delivered 15.5 billion cubic feet to Laclede Gas for transportation to them through the Utility’s distribution system.

Laclede Gas has a contractual right to store 23.1 billion cubic feet of gas in MRT’s storage facility located in Unionville, Louisiana. In addition, Laclede Gas supplements flowing pipeline gas with natural gas withdrawn from its own underground storage field located in St. Louis and St. Charles Counties in Missouri. The field is designed to provide 0.30 billion cubic feet of natural gas withdrawals on a peak day and annual withdrawals of approximately four billion cubic feet of gas based on the inventory level that its plans to maintain.

Non-Regulated Gas Marketing

LER, a wholly owned subsidiary of Laclede Investment, LLC, and Laclede Group’s primary non-regulated business, is engaged in the marketing of natural gas and providing energy services to both on-system Utility transportation customers and customers outside of Laclede Gas’ traditional service area. During fiscal 2009, LER utilized 13 interstate pipelines and approximately 70 suppliers to market natural gas to its customers, including retail and wholesale customers in the Midwest. LER served approximately 100 retail customers and 80 wholesale customers. Through its retail operations, LER offers natural gas marketing services to industrial customers, while its wholesale business consists of buying and selling natural gas to other marketers, producers, local distribution companies, pipelines and municipalities.

Other Subsidiaries

Laclede Pipeline Company, a wholly owned subsidiary of Laclede Group, operates a pipeline under FERC jurisdiction. Laclede Investment LLC, a wholly owned subsidiary of Laclede Group, invests in other enterprises and has made loans to several joint ventures engaged in real estate development. Laclede Gas Family Services, Inc., a wholly owned subsidiary of Laclede Energy Resources, Inc., is a registered insurance agency in the State of Missouri. Laclede Development Company, a wholly owned subsidiary of Laclede Group, participates in real estate development, primarily through joint ventures. Laclede Venture Corp., a wholly owned subsidiary of Laclede Development Company, offers services for the compression of natural gas to third parties who desire to use or to sell compressed natural gas for use in vehicles.