Financial Strength

Sequent Energy Management is a wholly owned subsidiary of AGL Resources and benefits from the strong financial profile and risk management capabilities of its parent. AGL Resources has solid investment-grade corporate credit ratings with each of the major rating agencies (S & P: BBB+; Moody's: Baa1; and Fitch: A-), providing a stable financial foundation for Sequent's operations.

Sequent began operations in 2001 in the world's energy capital Houston, Texas. The company quickly built a profitable natural gas business providing customers with asset management and optimization, storage, transportation, producer and peaking services, and wholesale marketing. The franchise demonstrated the value of its business model in the volatile markets of 2006 and 2007 by delivering EBIT (earnings before interest and taxes) of $90 million and $34 million respectively. In 2007 and beyond, Sequent seeks to leverage its experience, systems, and business model by expanding its scope and scale to serve customers in additional regions and parts of the natural gas value chain.

Currently, Sequent buys and sells natural gas, with daily physical volumes of more than 2.35 billion cubic feet (Bcf), across approximately 70 pipelines with more than 300 counterparties located in North America.

For more details on the financial profile of Sequent Energy Management, please refer to the "Investor Relations" section at www.aglresources.com.