Enogex operates primarily in the major natural gas producing basins of Oklahoma, with approximately 7,900 miles of intrastate gas gathering and transportation pipelines.

The Enogex natural gas pipeline operates through three related businesses:

Gathering and Processing

Through Enogex’s gathering and processing assets, Enogex accumulates gas supplies for its local markets and also for markets accessible through its intrastate and interstate pipeline connections. Enogex aggressively pursues new supplies from wells drilled by producers primarily in the Anadarko and Arkoma basins. Oklahoma ranks second in the nation in onshore natural gas production and ranks second in the nation as a natural gas exporting state. The system capacity, due to its large diameter gathering pipelines and its natural gas processing plants, is capable of adapting to the varying pressure and quality requirements of mid-continent production. Enogex is able to provide low-pressure service to extend the production life of older wells as well as meeting the high-pressure requirements of new exploration. Enogex, through its processing plants, is also able to remove natural gas liquids from the wellhead gas streams, which is necessary for such gas to meet quality specifications of the downstream marketplace.

Transportation and Storage

The transportation capabilities and markets of the pipeline assets provide other business opportunities. This equally important and valuable feature of Enogex and its assets is the ability to use its pipeline system and storage assets as a “market hub”. Enogex is connected to 15 other major pipelines at approximately 65 pipeline interconnect points providing access to markets in the western United States, the Midwest, Northeast, and Gulf Coast in addition to Oklahoma and adjoining states. Therefore, regardless of the constantly varying relationship between supply and demand, both in volume and location, Enogex’s assets sit in a key geographic region of the United States, with sufficient capacity to provide cross-haul transportation and storage services to a variety of utility and industrial customers that need to access mid-continent supply for their own needs, or to suppliers from other regions seeking to provide gas to on-system markets which Enogex serves.

Marketing

Enogex’s marketing business is an important element in realizing the full value of its transportation and storage assets and in providing products and services that support the market hub concept. The marketing business offers the Company real-time and longer-term price discovery and valuation of energy commodities (natural gas and associated natural gas liquids) associated with the Company’s assets. The marketing business also is instrumental in providing increased liquidity for these energy commodities, by focusing on developing supplies and markets that can access the Enogex systems either directly or via interconnections with intrastate and interstate pipelines. The marketing business also provides the Company the capability to provide risk management services to its customers.