exhibit_99-1.htm

EX-99.1 2 exhibit_99-1.htm INVESTOR PRESENTATION exhibit_99-1.htm

AGL Resources
2012 Investor Conference

March 20, 2012

Agenda

8:00 - 8:30	REGISTRATION & BREAKFAST
8:30 - 8:35	Welcome Remarks	Sarah Stashak Director, Investor Relations
8:35 - 8:50	CEO Remarks	John Somerhalder Chairman, President & CEO
8:50 - 9:20	Financial Overview	Drew Evans EVP & CFO
9:20 - 10:00	Distribution Operations	Hank Linginfelter EVP, Distribution Operations
10:00 - 10: 15	BREAK
10:15 - 10:45	Retail Operations	Mike Braswell - President, Retail Energy Beth Reese - President, Retail Services
10:45 - 11:15	Wholesale Services & Midstream	Pete Tumminello EVP, Wholesale Services
11:15 - 11:30	Cargo Shipping	Drew Evans EVP & CFO
11:30 - 12:00	Final Q&A
12:00 - 1:00	LUNCH

Cautionary Statements and Supplemental Information

Forward-Looking Statements

Certain expectations and projections regarding our future performance referenced in this presentation, in other reports or statements we file with the SEC or otherwise release to the public, and
on our website, are forward-looking statements. Senior officers and other employees may also make verbal statements to analysts, investors, regulators, the media and others that are forward-
looking. Forward-looking statements involve matters that are not historical facts, such as statements regarding our future operations, prospects, strategies, financial condition, economic
performance (including growth and earnings), industry conditions and demand for our products and services. Because these statements involve anticipated events or conditions, forward-looking
statements often include words such as "anticipate," "assume," "believe," "can," "could," "estimate," "expect," "forecast," "future," "goal," "indicate," "intend," "may," "outlook," "plan," "potential,"
"predict," "project," "seek," "should," "target," "would," or similar expressions. Forward-looking statements contained in this presentation include, without limitation, statements regarding future
earnings per share, capital expenditures, pension expenses, contracted capacity rates, costs related to our asset portfolio, dividend growth and EBIT contribution and our priorities for 2012. Our
expectations are not guarantees and are based on currently available competitive, financial and economic data along with our operating plans. While we believe our expectations are
reasonable in view of the currently available information, our expectations are subject to future events, risks and uncertainties, and there are several factors - many beyond our control - that
could cause results to differ significantly from our expectations.

Such events, risks and uncertainties include, but are not limited to, changes in price, supply and demand for natural gas and related products; the impact of changes in state and federal
legislation and regulation, including changes related to climate change; actions taken by government agencies on rates and other matters, including regulatory approval of new partnerships;
concentration of credit risk; utility and energy industry consolidation; the impact on cost and timeliness of construction projects by government and other approvals, development project delays,
adequacy of supply of diversified vendors, unexpected change in project costs, including the cost of funds to finance these projects; the impact of acquisitions and divestitures including the
Nicor merger; limits on natural gas pipeline capacity; direct or indirect effects on our business, financial condition or liquidity resulting from a change in our credit ratings or the credit ratings of
our counterparties or competitors; interest rate fluctuations; financial market conditions, including disruptions in the capital markets and lending environment and the current economic
uncertainty; general economic conditions; uncertainties about environmental issues and the related impact of such issues; the impact of changes in weather, including climate change, on the
temperature-sensitive portions of our business; the impact of natural disasters such as hurricanes on the supply and price of natural gas; the outcome of litigation; acts of war or terrorism; and
other factors which are provided in detail in our filings with the Securities and Exchange Commission. Forward-looking statements are only as of the date they are made, and we do not
undertake to update these statements to reflect subsequent changes.

Supplemental Information

Company management evaluates segment financial performance based on earnings before interest and taxes (EBIT), which includes the effects of corporate expense allocations and on
operating margin. EBIT is a non-GAAP (accounting principles generally accepted in the United States of America) financial measure that includes operating income, other income and
expenses. Items that are not included in EBIT are financing costs, including debt and interest expense and income taxes. The company evaluates each of these items on a consolidated level
and believes EBIT is a useful measurement of our performance because it provides information that can be used to evaluate the effectiveness of our businesses from an operational
perspective, exclusive of the costs to finance those activities and exclusive of income taxes, neither of which is directly relevant to the efficiency of those operations. Operating margin is a non-
GAAP measure calculated as operating revenues minus cost of goods sold and revenue taxes, excluding operation and maintenance expense, depreciation and amortization, and taxes other
than income taxes. These items are included in the company's calculation of operating income. The company believes operating margin is a better indicator than operating revenues of the
contribution resulting from customer growth, since cost of goods sold and revenue taxes are generally passed directly through to customers. In addition, in this presentation, the company has
presented a non-GAAP measure of both its net income and its earnings per share each adjusted to exclude expenses incurred with respect to the Nicor merger. As the company does not
routinely engage in transactions of the magnitude of the Nicor merger, and consequently does not regularly incur transaction related expenses with correlative size, the company believes
presenting net income and EPS excluding Nicor merger expenses provides investors with an additional measure of the company’s core operating performance. EBIT, operating margin, net
income excluding merger expenses (also referred to as adjusted net income) and EPS excluding merger expenses (also referred to as adjusted EPS) should not be considered as alternatives
to, or more meaningful indicators of, the company's operating performance than operating income, net income attributable to AGL Resources Inc. or EPS as determined in accordance with
GAAP. In addition, the company's EBIT, operating margin, adjusted net income and adjusted EPS may not be comparable to similarly titled measures of another company. Reconciliations of
non-GAAP financial measures referenced in this presentation are available on the company’s Web site at www.aglresources.com

Presenter Bios

John W. Somerhalder II

Chairman, President and Chief Executive Officer
AGL Resources

John W. Somerhalder II was named president and chief executive officer of AGL Resources (NYSE:GAS) in March 2006 and
elected as chairman of the company's board of directors in November 2007.

Mr. Somerhalder joined AGL Resources from El Paso Corporation where he spent almost 30 years, rising through the ranks
from engineer to president of El Paso Pipeline Group and executive vice president of El Paso Corporation.

Mr. Somerhalder is a member of the board of directors of the American Gas Association, which he chaired in 2011. He also
serves on the boards of the Gas Technology Institute, the Georgia Chamber of Commerce and the Metro Atlanta Chamber of
Commerce. He has served as past chairman of the Interstate Natural Gas Association of America. He was elected director of
Crestwood Gas Services GP LLC in July 2007.

Mr. Somerhalder is chairman of the board of the Beltline Partnership, which supports development of the Atlanta BeltLine
along 22 miles of historic railroad around the city. A member of the board of the United Way of Metropolitan Atlanta, he
successfully chaired the 2009 United Way Campaign for metro Atlanta during difficult economic times and served an
unprecedented second term as chair of the 2010 campaign.

Mr. Somerhalder holds a bachelor of science degree in chemical engineering from the University of Arizona.

He and his wife, Rebecca, live in Atlanta. They have four grown children and five grandchildren.

Andrew W. (Drew) Evans

Executive Vice President and Chief Financial Officer

AGL Resources

Andrew Evans was named senior vice president and chief financial officer of AGL Resources (NYSE:GAS) in September 2005
and promoted to executive vice president, chief financial officer in May 2006. In this capacity, Mr. Evans directs finance,
accounting and information technology for all AGL Resources businesses, as well as investor relations and the company’s
strategic planning functions. He also has responsibility for various unregulated subsidiaries.

Mr. Evans joined AGL Resources in May 2002 as vice president of finance and treasurer, where he was responsible for the
company’s treasury and finance operations including corporate finance, cash management, rating agency relationships,
pension management and corporate planning and analysis. He also played a key role in supporting the company’s corporate
development and growth initiatives, and assisted in deal evaluation, structuring and financing.

Mr. Evans came to AGL Resources from Mirant Corporation (formerly Southern Energy Inc.) where he served in various
finance and business development roles over a nine-year period. Prior to Mirant, Mr. Evans was employed by National
Economic Research Associates and the Federal Reserve Bank of Boston.

Mr. Evans serves as chairman of the board of Zoo Atlanta and on the finance committees of Grady Memorial Hospital,
Refugee Family Services and the Georgia Council for Economic Education, where he is also a board member.

Mr. Evans is a graduate of Emory University and lives in Atlanta with his wife, Faye.

Henry P. (Hank) Linginfelter

Executive Vice President, Distribution Operations

AGL Resources

Henry P. “Hank” Linginfelter was named executive vice president, distribution operations, for AGL Resources (NYSE:GAS) in
December 2011. As chairman and CEO of the company's seven utilities, Mr. Linginfelter is responsible for all operating
functions of the utilities including field operations, customer experience, gas operations, construction, energy efficiency
programs and utility marketing and sales. In addition he has corporatewide responsibility for regulatory and governmental
affairs, economic development, supply chain, engineering and environmental health and safety.

In his years of service with AGL Resources, Mr. Linginfelter has assumed increasing levels of responsibility and has played a
key role in the company’s operations, marketing and regulatory activities. He has more than 28 years of experience in utility
operations with AGL Resources.

Prior to his current role, Mr. Linginfelter had oversight responsibilities for the company’s mid-Atlantic operations. This included
the integration and management of Virginia Natural Gas (Virginia) in 2000 and Elizabethtown Gas (New Jersey) in 2004. He
resided in Virginia and served as president of each of those utilities along with Elkton Gas (Maryland) until 2007 when he
returned to Atlanta to oversee utility operations companywide.

Mr. Linginfelter currently serves on the boards of Central Atlanta Progress, Metro Atlanta Chamber of Commerce, The Nature
Conservancy of Georgia, Georgia Allies, Boy Scouts Atlanta Area Council, Southern Gas Association and Jekyll Island
Foundation, where he is chairman. He also serves on the Leadership Council of the American Gas Association and is a
graduate of the Leadership Atlanta Class of 2009.

Mr. Linginfelter has a bachelor’s degree in industrial management from Georgia Tech and a master’s degree in business
administration from Georgia State University.

He and his wife, Sandy, and their two children reside in Atlanta and attend Buckhead Church.

Michael (Mike) Braswell

Michael Braswell

President of Retail Energy, AGL Resources

President and CEO, SouthStar Energy Services

AGL Resources

Michael Braswell was named president of retail energy for AGL Resources (NYSE:GAS) in December 2011. He is responsible
for ensuring the expansion and continued success of AGL Resources' retail energy operations in multiple states. To that end,
he continues to serve as CEO of SouthStar Energy Services, LLC, a joint venture between AGL Resources and Piedmont
Natural Gas Company. SouthStar serves more than half a million customers.

Mr. Braswell has more than 20 years of experience in the natural gas industry, working in both regulated and deregulated
environments. Prior to being named CEO of SouthStar, he served as executive vice president and chief operating officer for
SouthStar. He also has held positions as vice president, retail markets, and as vice president, customer service and strategic
planning.

Before joining SouthStar, Mr. Braswell held various key positions over a 10-year period with AGL Resources, working in
marketing, sales management, rates and strategic planning.

Mr. Braswell 's commitment to giving back to the communities that SouthStar serves has resulted in his team of employee
volunteers receiving national and local awards for outstanding community service.

A graduate of Georgia Tech, Mr. Braswell earned a bachelor's degree in industrial engineering. He later earned a master of
business administration degree (concentration in finance) from Georgia State University.

He resides in Atlanta with his wife and four children.

Elizabeth W. (Beth) Reese

Senior Vice President and President of Retail Services

AGL Resources

Elizabeth W. "Beth" Reese was named senior vice president and president of retail services for AGL Resources (NYSE:GAS) in
December 2011. She is responsible for overseeing and expanding the company's home services and solutions. Currently, the
company offers proven, turnkey solutions for the home, delivered and sustained through service excellence, to customers
through Nicor National.

Previously, Ms. Reese played an integral role in leading the complex integration planning efforts for AGL Resources' acquisition
of Nicor Inc. She was responsible for executing the company's integration strategy and achieving results while ensuring that the
cultural and change management aspects of the effort were realized. The successful integration planning created the largest
natural gas-only distribution company in the United States based on customer count.

Prior to that, Ms. Reese served as vice president, Operational Planning and Analysis, overseeing operational and financial
planning for the company's largest business segment which was comprised of six utilities -- Atlanta Gas Light, Chattanooga Gas,
Elizabethtown Gas, Elkton Gas, Florida City Gas and Virginia Natural Gas.

Since joining AGL Resources in November 2000, she has also served the company as vice president in various functions
including business innovation, customer service, finance and controller. Prior to joining AGL Resources, she was a senior
manager for the worldwide accounting and consulting firm of Deloitte LLP.

While an Atlanta-based executive, Ms. Reese served on the board of directors for CHRIS Kids, a community-based multi-service
mental health treatment organization for children and families, and on the board of directors for Imagine It! - The Children's
Museum of Atlanta, whose mission is to spark imagination and inspire discovery and learning for all children through the power
of play.

A native of Maryland, Ms. Reese received her bachelor's degree in business administration and economics from St. Andrew's
Presbyterian College and her master's of accountancy from the University of Georgia.

Ms. Reese is based in Naperville, Ill. She and her husband are raising one daughter.

Peter (Pete) Tumminello

Executive Vice President, Wholesale Services

President, Sequent Energy Management

AGL Resources

Peter Tumminello was named executive vice president, wholesale services, for AGL Resources (NYSE:GAS) in December 2011. In this
role, he has executive oversight for AGL Resources’ marketing and trading business, storage business and fuels business.

He continues to serve as president of Sequent Energy Management, leading all aspects of Sequent's operations including natural gas
asset management, origination, trading, producer services, support functions and long-term growth strategy.

Mr. Tumminello brings more than 20 years experience in natural gas marketing and trading and more than 27 years in the energy industry
to his position. He previously served as executive vice president of business development and support for Sequent and as vice president
of corporate development for AGL Resources. In this capacity, Mr. Tumminello and his team helped expand Sequent’s business into new
regions and products while supporting AGL Resources’ affiliate utilities through successful asset management programs.

Mr. Tumminello joined the executive management team of Sequent in August 2003 as vice president of asset management and
origination. He has served on the AGL Resources Policy Committee since April 2010.

Prior to joining AGL Resources and Sequent, Mr. Tumminello was vice president of energy supply for Green Mountain Energy Company,
and he worked for TPC Corp and ARCO Oil and Gas Company in various capacities in energy marketing, storage and transportation
asset management, petroleum engineering, finance and planning, and project evaluation.

Mr. Tumminello earned his master of business administration from the University of Southwestern Louisiana and his bachelor of science
in petroleum engineering from Louisiana Tech University. He serves on the advisory board for Tulane University's Energy Institute and
the advisory board for the Arc of Katy.

A native of New Orleans, Mr. Tumminello lives with his wife and two daughters in Katy, Texas.

CEO Perspective

John Somerhalder

Chairman, President & Chief Executive Officer

Corporate & Retail Energy

Distribution Operations &
Retail Services

AGL Resources Footprint

Wholesale & Midstream

Cargo Shipping

Nation's largest natural gas-only distributor based on customer count.

2011 Key Accomplishments

• Achieved total shareholder return for 2011 of 24%

• Excluding $64 million in after-tax costs related to the Nicor merger, we recorded
diluted EPS of $2.92 on a non-GAAP basis

o Strong growth from distribution operations supported primarily by new rate and
infrastructure programs at Atlanta Gas Light

o Another year of solid performance from retail operations; despite an increasingly
competitive marketplace, we retained our leading market share position in
Georgia

o Low volatility and reduced natural gas transportation and storage spreads,
combined with warm 4Q11 weather, created headwinds for our wholesale and
midstream segments in 2011

• Completed acquisition of Nicor Inc. on December 9, 2011, effectively doubling the
size of our regulated asset and customer base

• Maintained safe and efficient operation of our natural gas distribution systems

2011 Total Shareholder Return

Source: Thomson Reuters

Peer Avg = 23.7%

LDC Avg = 18.4%

Source: Thomson Reuters

Peer Avg = 77.4%

LDC Avg = 47.1%

3-Year Total Shareholder Return

2012 Opportunities and Risks

• Integration of Nicor businesses

o Reduction in corporate overhead
expenses well underway

o All business services being analyzed
for efficiencies

• Extension filings for infrastructure
investment programs in Georgia and New
Jersey, with new program expected to
begin in Virginia in 2H12

• Leverage legacy AGLR and Nicor retail
businesses to grow both energy and
services components

• Legacy fixed cost contracts begin to roll
off at Sequent

• Complete construction at Golden Triangle
and Central Valley and contract additional
capacity

Opportunities

Risks

• Continuation of warmer than normal
temperatures across our service
territories

o Through mid-March, EBIT impact of
warmer weather ~$15 million across
distribution and retail

• Utility growth mitigated by bonus
depreciation, no planned rate case filings
and continued slow/minimal customer
growth

• Increasing competition at the retail level in
Georgia and other choice markets

• Continued environment of low natural gas
price volatility and narrow transportation
and storage spreads

o Margin compression for wholesale and
reduced storage rates for midstream

• Ongoing weak economic environment and
high fuel prices for cargo shipping

2012 Priorities and Objectives

• Make necessary capital investment to enhance and maintain the safety and
reliability of our distribution systems, while minimizing regulatory lag

• Remain a low-cost leader within the industry

• Maintain market share in Georgia and Illinois while expanding further into new
territories such as Ohio and Florida

• Leverage experience across SouthStar and Nicor’s retail businesses

• Renew affiliated and non-affiliated asset management agreements and add new asset
management, gas-fired power generation and producer services contracts

• Continually enhance risk management, credit management and overall controls

Distribution

Retail

Wholesale

Midstream

Cargo Shipping

Expense &
Balance Sheet
Discipline

• Complete construction of Golden Triangle Cavern 2 and Central Valley Gas
Storage and execute contracts for newly available capacity

• Reduce project development costs in response to low volatility environment

• Effectively control expenses and focus on capital discipline in each of our
business segments

• Maintain strong balance sheet and liquidity profile

• Expand market share in key service areas while providing quality total
transportation and logistics solutions for our customers

• Prudently deploy capital investment and diligently manage operating costs

Financial Overview

Drew Evans

EVP & Chief Financial Officer

Business

Financial

Investors

• Centralize service
functions that are
scalable

• Improve utility returns
by operating
complementary non-
regulated businesses

• Accelerate returns on
regulated infrastructure
investments

• Maximize return on
invested capital

• Maintain financial
integrity in utility and
non-regulated
businesses

• Grow dividends and
earnings

• Focus on total
shareholder return

• Ensure management
and employee
incentives are properly
aligned with
shareholder interests

Strategic Priorities

Note: Please review the AGL Resources 10-K as filed with the SEC on 2/22/12 for detailed information. EBIT, Adjusted Net
Income and Adjusted EPS are non-GAAP measures. Please see the appendix to this presentation or visit the investor
relations section of www.aglresources.com for a reconciliation to GAAP.

(1) Change represents y/y change of 2011 Combined vs. 2010 Legacy AGLR.

(2) Adjusted net income and adjusted EPS exclude Nicor-related merger costs of approximately $64 million, net of tax.

2011 Financial Results

Earnings Before Interest & Taxes

Annual EBIT by Operating Segment

(in millions)

2011 EBIT Contribution by Operating
Segment

79%

18%

(1) There was no EBIT impact from the Cargo Shipping segment for the 22 days of Nicor results recorded in 2011.

NOTE: EBIT is a non-GAAP measure. Please see the appendix to this presentation or the investor relations section of www.aglresources.com for a
reconciliation to GAAP.

(1) Retail Energy Operations segment includes EBIT related to SouthStar at the 100% level. AGL Resources owned a 70% interest during
2007, 2008 and 2009, and received an approximate 75% share of the earnings each year (except in Ohio and Florida, which were 70%).
Effective January 1, 2010, AGL owns 85% of the joint venture partnership and receives 85% of its earnings. The total earnings per
diluted share for AGL Resources represented here reflects these sharing levels in each year.

(2) 2010 and 2011 EPS and 2012 estimated EPS are adjusted for expenses related to the merger with Nicor. See the appendix to this
presentation or the investor relations section of www.aglresources.com for a reconciliation to GAAP.

2012 Segment EBIT Estimates

$3.15

$0.07

$0.03

$0.27

$0.11

$0.12

$0.03

$0.10

$2.88

EPS Reconciliation: Prior Expectations to 2012 Guidance

EPS Track Record

$2.80-

2012 EPS Guidance between $2.80-$2.95 per diluted share

2000-2011 CAGR: 6.98%

Diluted Earnings Per Share

(1) 2010: $3.00 diluted GAAP EPS; $3.05 adjusted, excluding Nicor merger costs; 2011: $2.12 diluted GAAP EPS, $2.92 adjusted. Please see the appendix to this
presentation or visit the investor relations section of www.aglresources.com for a reconciliation to GAAP.

(2) Estimate excludes all effects from the merger with Nicor.

Dividend Track Record

(1) 2011 payout ratio based on adjusted EPS of $2.92.

(2) 2012 payout ratio based on mid-point of EPS guidance range and assumption that Board of Directors approves each quarterly dividend.

2000-2011 CAGR: 4.75%

Dividends Declared

• Management and the Board of Directors have demonstrated a commitment to dividend
growth and have established a strong track record of regular dividend increases

Capital Expenditures

Note: “Other” includes a number of capital items, including information technology funding; building and leasehold improvements; and facility and
fleet investments.

$825

Bonus Depreciation - Impact on AGL Rate Base Growth

Pension and Other Retirement Plans

Funding Requirements

• Current underfunded status for AGL and NUI plans is $214 million (as measured by accumulated
benefit obligation minus plan assets)

• Current overfunded status of Nicor plan is $27 million

• Current financing assumptions include pension funding of $36 million in 2012

• Evaluation underway to combine all pension plans

Expenses (Pension and Post-Retirement)

• 2012 expense is projected at approximately $55 million, compared to $41 million in 2011 (AGL
legacy plans plus Nicor)

• Estimated impact to 2012 earnings per share of approximately $0.07 vs. 2011 on a tax effected
basis

• Increase is driven by reduction in the discount rates

o AGL Plan - 5.40% reduced to 4.60%

o NUI Plan - 5.20% reduced to 4.50%

o Nicor Plan - 5.40% reduced to 4.60%

• Pension expenses are typically recoverable in general rate cases in our jurisdictions (no pension
tracker mechanisms)

Debt Maturity Schedule

• AGLR average interest rate: 5.3% / Peer group average interest rate: 5.7%

• AGLR average duration: 14 years / Peer group average duration: 11 years

AGLR Liquidity Profile

(as of 12/31/11)

NOTE: Utilization impacted by seasonality and historically peaks in the fourth quarter.

Liquidity

Nicor Gas Liquidity Profile

(as of 12/31/11)

• Solid balance sheet with significant
opportunity to fund capital requirements

• Good access to capital markets

• Company credit metrics support solid,
investment-grade ratings

• $4.9 billion debt outstanding

• Long-term debt $3.6 billion

• Short-term debt of $1.3 billion

• Quarterly High Debt to Cap Ratio 2011: 58%

• Average Debt to Cap Ratio 2011: 55%

• 2012 cap ex estimated at $825 million

• Approximately $725 million of utility cap ex
expected in 2012 vs. $604 million in 2011 for
legacy AGLR utilities + Nicor Gas

• $300 million of 2012 utility cap ex is rider-
based

• Approximately $100 million of non-utility cap
ex expected in 2012

Balance Sheet Highlights

2012 Priorities

• Successfully integrate Nicor merger, including combining systems
and personnel and utilizing best practices across businesses

• Prudently invest capital, with a strong bias toward regulated
projects with minimal or no recovery lag

• Optimize current wholesale and midstream businesses in a
sustained low volatility market

• Continue aggressive cost-control throughout the business

• Maintain strong balance sheet and liquidity profile and solid
investment-grade ratings

• Deliver on our commitments to shareholders

Distribution Operations

Hank Linginfelter

EVP, Distribution Operations

Distribution Operations - Overview

• 4.5 million customers

• 80,000 miles of pipeline

• Aggregate rate base of $4 billion

• Annual capex ~$725 million

Approximately 40% of capex under
specific recovery programs

• ~4,400 employees

• Top quartile safety ratings for on-the-job
injuries and days away from work

Key Statistics

• Approved regulatory cost recovery mechanisms have reduced lag between
infrastructure investments and recovery

• Continued focus on cost containment

Distribution Operations - EBIT Track Record

EBIT Growth

(1) Includes $15 million of EBIT from Nicor Gas, excluding change in control payments.

(2) Reflects mid-point of guidance range for Distribution Operations segment.

Note: EBIT is a non-GAAP measure. Please see the appendix to this presentation or visit www.aglresources.com for a reconciliation to GAAP.

Key 2011 Results - Distribution Operations

• Settled Virginia Natural Gas rate case
including recovery for the Hampton Roads
Crossing pipeline project; modest earnings
increase due to previous AFUDC and
carrying costs booked for the project

• Hired 100 additional employees and invested
in technology, equipment, and fleet at Atlanta
Gas Light for customer service and safety-
oriented programs funded in 2010 rate case

• Replaced ~100 miles of pipeline in Georgia
under the infrastructure replacement
programs; over 2,500 miles of pipeline
replaced in Georgia since 1998

• Reduced O&M costs by 1% and below
inflation for 2011

• Completed installation of automated meter
reading devices at several of our utilities
ahead of schedule and under budget

COG = Cost of Goods Sold

Rate Case History

Utility	Last Rate Case	Key Outcomes	Agreements on Rate Case Stay outs
Nicor Gas	Mar. 2009	• $80 million rate increase • Bad debt rider approved in February 2010 providing recovery from (or credit to) customers the difference of actual expense and $63 million benchmark • Rate case reset heating degree days from 5,830 to 5,600	Stay out concludes Dec. 2014
Atlanta Gas Light	Oct. 2010	• $26.7 million rate increase approved • Included ~$10 million in new customer service and safety programs • Adopted new acquisition synergy sharing policy	None
Virginia Natural Gas	Dec. 2011	• $11 million rate increase in base rates • Recovery of $3.1 million in costs previously recovered through base rates now recovered through PGA • Approval to recover gas portion of bad debts through the PGA	None
Elizabethtown Gas	Dec. 2009	• $3 million rate increase • New depreciation rates decreased expense $5 million • Two-year rate freeze concluded in 2011	None
Florida City Gas	Feb. 2004	• $7 million rate increase • Approval in late 2007 to include acquisition adjustment amortization expense in operating income and acquisition adjustment asset balance in rate base for regulatory surveillance reporting purposes • 2007 approval included a 5-year stay-out provision	Stay out concludes Oct. 2012
Chattanooga Gas	May 2010	• Instituted new rate design that encourages customer conservation • First decoupled rate design for TN utility • New depreciation rates decreased expense of $2 MM annually	None

Regulatory Recovery Mechanisms

Utility	Rate Decoupling	Weather Normalization	Bad Debt Recovery	Conservation Program Recovery	Infrastructure Replacement
Nicor Gas			P	P
Atlanta Gas Light	P				P
Virginia Natural Gas		P	P		P*
Elizabethtown Gas		P		P	P
Florida City Gas				P
Chattanooga Gas	P	P	P	P

* VNG filed for approval of an infrastructure replacement program in January 2012. Application deemed complete and program should begin
August 2012.

Nicor Gas

• Bad debt recovery rider

o Approved in February 2010

o Provides for the recovery from (or credit to)
customers the difference between actual annual
bad expense and a $63 million benchmark bad
debt expense included in its base rates for the year

• Weather risk

o No weather normalization mechanism in place

o 50% of usage is space heating and 75% of usage
and revenues occur October - March

o Customer charge significantly reduces margin
subject to weather risk

o 100 degree-day variation from normal weather
equates to a $1 million impact to margin net of
income taxes

o 2009 rate case reset heating degree days from
5,830 to 5,600

• Energy conservation program

o Approved in May 2011 pursuant to Illinois law
requiring such programs

o Program costs recovered through rider

o Estimate ~$155 million would be billed to
customers under the rider over a 3-year period

(1) AGLR owned Nicor for 22 days in 2011, as such full year actual
ROR and ROE are not available.

• On February 16, 2012 Nicor Gas filed a stipulated resolution along with Illinois
Commerce Commission (ICC) Staff that includes crediting $64 million to customers
relating to the long-running Performance Based Rate (PBR) case pending before the
ICC

o Nicor Gas had already reserved $27 million for this issue

o Assuming the ICC approves the proposed stipulation, no impact to AGLR earnings
expected going forward

• Stipulation requires approval by ICC

• Illinois Attorney General’s Office and Citizens Utility Board are not parties to the
current stipulation

• Stipulation will be considered simultaneously with all issues in the case

o Evidentiary hearings began the week of 2/27/12

o Briefing expected to be complete by 4/26/12

o ICC ruling anticipated later this year

Nicor Gas - PBR Settlement with ICC Staff

Atlanta Gas Light

• Strategic Infrastructure Development and
Enhancement (STRIDE) program

o Provides system upgrades to meet customer
deliveries on the coldest days of the year

o Includes the pipeline replacement program which
is replacing aging infrastructure

o Includes program to extend facilities in areas
without access and promote economic
development

o Expenditure recovery provided by program riders

• Synergy sharing policy allowing for the
recovery/credit of 50% of net synergy
savings achieved on acquisitions

• 100% of operating margin decoupled (AGL
does not directly serve retail customers in
Georgia), so weather risk largely mitigated

• Received approval in 2011 to use $11.6
million of Universal Service Funds to aid in
the construction of CNG stations and
equipment to serve retail and commercial
fleet customers

Virginia Natural Gas

• Steps to Advance Virginia’s Energy (SAVE) Act

o Filed for an accelerated infrastructure replacement
program in January 2012

o Proposed 5-year program with $25 million maximum
allowance per year, not to exceed $105 million for
the 5-year period

o Accelerated recovery of $10 million over 5-year
period

• Weather Risk

o Approved WNA program using 30 year normal
weather

o Coverage of commercial customers became
permanent as part of the 2011 rate case

• 2011 Rate Case Outcomes - Recovery
Mechanisms

o Gas portion of bad debts are now recovered through
the purchased gas adjustment

o $3.1 million of costs previously recovered through
base rates now recovered through the company’s
gas cost recovery rate

Elizabethtown Natural Gas

• Utility Infrastructure Enhancement (UIE)

o Accelerated enhanced infrastructure program
created in response to Governor’s request for
increasing infrastructure investments to spur
economic recovery

o First phase of the program completed in 2010

o Received approval in May 2011 to invest an
additional $40 million under the program through
2012

o Costs recovered through periodic adjustments to
base rates

o Expect to file for extension of the program in 2012

• Operating margin weather normalization
program in effect

o Required to return portion of WNA surcharge to
customers if return on equity exceeds authorized
return of 10.3%

• Focus on conversion opportunities from fuel
oil users

• Expect additional capital projects to augment
supply diversity and system reliability and
explore CNG fueling

Florida City Gas & Chattanooga Gas

• Florida City Gas

o Agreed to stay-out in 2007 when approval
received to include acquisition adjustment
amortization in operating income and acquisition
adjustment asset balance in rate base for
regulatory reporting

o Five-year stay-out provision ends in 2012; rate
case filing will be evaluated after full integration
of Nicor

o Minimal weather risk

o Energy conservation program in place and
funded by customers via a per therm surcharge

• Chattanooga Gas

o Gas portion of bad debts recovered through the
purchased gas adjustment

o Energy conservation program provides
programmable thermostats and customer
education; costs recovered through asset
management agreement proceeds

o 72% of operating margin decoupled with weather
normalization program in effect

2012 Priorities and Objectives

• Make necessary capital investments to enhance and maintain the safety and
reliability of our distribution systems, while minimizing regulatory lag

o Maintain leadership role in pipeline safety and infrastructure replacement

o Execute approved infrastructure replacement programs in Georgia and New Jersey

o Receive approval of an infrastructure replacement program from the Virginia State Corporation
Commission and accomplish program goals

• Position utilities for growth

o Promote natural gas as the better alternative due to low natural gas commodity prices and
increased spreads between natural gas and oil/propane

o Prepare for housing markets stabilization and increasing industrial and commercial demand

o Foster natural gas for transportation (CNG behind the city gates)

• Remain a low-cost leader within the industry

o Continue to control costs by focusing on productivity improvements, leveraging common
systems, standardization and scale

o Complete Nicor integration and set the foundation to be the industry leader in natural gas
distribution

o Standardize AGL and Nicor operational best practices for increased efficiencies and best-of-
class service

Retail Operations

Mike Braswell - President, Retail Energy

Beth Reese - President, Retail Services

Key 2011 Results - Retail Operations

• Achieved full year 2011 EBIT of $93
million

• Maintained market share (33%) in
Georgia despite continued high levels of
competitor activity and consumer
shopping

• Leveraged new marketing channels such
as Delta SkyMiIes to enroll new
customers and improve retention

• Began integration of Nicor Advanced
Energy and Nicor Solutions businesses
in late Q4

• Commercial business created
incremental value from asset
management and, in addition, managed
risks inherent to retail business

• SE large C&I customers contributed an
incremental $6 MM to EBIT (includes
Georgia system balancing value)

• Ohio and Florida markets contributed
an incremental $3 MM to EBIT in 2011

• Expanded customer choice business into
markets of New York & Maryland

Profitable
market expansion

(market environment of
lower commercial opportunities

and increased retail
competition)

Historically
high storage
spreads

Note: Earnings before interest and tax. Results include 100% of SouthStar earnings, which effective January 1, 2010 are split 85% to AGL Resources and 15% to
Piedmont Natural Gas.

Retail Operations - EBIT Track Record

Addition of Nicor
retail businesses
& continued
market
expansion

$125-
$135

Georgia

•Georgia Natural Gas

•Customers & Equivalents: 485,000

•Annual Throughput (Bcf) : 35

Ohio & Florida

•Ohio Natural Gas

•Florida Natural Gas

•Customers & Equivalents: 96,000

•Annual Throughput (Bcf) : 9

Illinois

•Nicor Advanced Energy

•Nicor Solutions

•Customers & Equivalents: 80,000

•Annual Throughput (Bcf): 9

PRIMARY MARKETS

Retail Energy - Overview

Core Retail Market

Expanded Retail Market

Manage risks
inherent to retail
business and
maintain compliance;
create incremental
value from asset
management

Manage retail
customer portfolio
for long-term value
and profitability

Proactively
advocate to
protect and
improve our
markets and
business model

Brands

Retail

Book

Customer

Care

Asset /
Risk
Mgmt.

Market
Advocacy

Retail Energy
Competencies

Deliver high quality,
cost efficient billing
and customer service
through outsourced
vendors

Retail Energy - Competencies

Georgia Customer and Market Overview

• Atlanta Gas Light Company is the only local
distribution company (LDC) in the U.S. that
has fully unbundled (market deregulated in
1998)

• 10 active competitors in marketplace, with
top 4 representing approximately 85% of
market

• Serving customers under the Georgia
Natural Gas (GNG) brand (via our
SouthStar (SSE) partnership with Piedmont
Natural Gas (85% AGLR / 15% PNY))

• GNG is the long-standing market leader and
has maintained market share at 33% for 3
consecutive years

• Focus on new products and marketing
partnerships to sustain market leadership
and margins; Examples: price protection
guarantee and pre-pay plans, Delta
SkyMiles partnership

Customer and Throughput Information
	Customers (000s)	Normalized Annual Throughput (Bcf)
Residential	460	30
Choice C&I	25	10
Large C&I	0.2	12
Total	485	52

Customer and Throughput Information
	Customers (000s)	Normalized Annual Throughput (Bcf)
Nicor Gas Financial Fixed Bill Physical Fixed Bill Variable / Fixed Price	37.3 21.3 14.5 73.1	4.5* 3.0 1.5 9.0
North Shore Gas Physical Fixed Bill Variable / Fixed	0.7 0.9 1.6	0.2 0.1 0.3
Peoples Gas Physical Fixed Bill Variable / Fixed Price	0.6 2.0 2.6	0.1 0.2 0.3
Total	77.3	9.6

*Nicor Solutions does not supply the physical commodity as part of
the Financial Fixed Bill program. The throughput equivalent is
based on the gas supplied by Nicor Gas to enrolled customers.

Illinois Customer and Market Overview

• Illinois local distribution companies
(LDCs) began offering choice to retail
customers in the late 1990s, however
approximately 90% of customers remain
with the LDC

• Active behind Nicor Gas, Peoples Gas
and North Shore Gas

• Product offerings include: annual fixed
bill products (physical and financial),
price per therm products (fixed and
variable)

• The annual fixed bill products are a
natural offset to the financial impacts of
warmer than normal weather for Nicor
Gas

Expanded, C&I and Emerging Markets Overview

Market Designation	State(s) / Brand	Retail Energy Position	Key Market Objectives
Expanded Markets	OH / Ohio Natural Gas	Active behind Dominion East Ohio, Vectren Delivery of Ohio & Columbia of Ohio	• Choice market growth • Launched Delta SkyMiles program • Expansion into Duke territory
	FL (Florida Natural Gas)	Active behind Central Florida Gas, Tampa Electric, Florida Public Utilities & Florida City Gas	• Steady, moderate growth
	NY (New York Natural Gas)	Active behind O&R and National Grid	• Choice market growth
	MD (Maryland Energy)	Active behind BG&E; Preparing to enter WGL	• Establish and grow customer base
Large C&I	GA, TN, SC, NC	Principally operating behind AGLC, PNG, CGC and Nashville Gas	• Balanced customer portfolio
Emerging Markets	NE / WY / CO	Evaluating market entry behind SourceGas LDCs	• Evaluating key metrics for potential market entry
Emerging Markets	PA, NJ, IN, MI, VA	Evaluating timing for pursuing certification	• Evaluating key metrics for potential market entry

Retail Energy - Market Fundamentals

Natural Gas Market

• 10 year low NYMEX prices improves some retail drivers,
e.g. bad debt

• Low price volatility has reduced commercial opportunities

Sustained high
gas production
and record warm
winter

LDC Factors

• Universe of natural gas customer prospects experiencing
limited growth

Low system
growth

Retail Markets

• Increased pressure on retail spreads, market share & price
plan mix

• Greater investment required for customer acquisition and
retention

• Top line growth opportunities challenged

Increased
competition and
consumer
involvement

Area / Topic

Environment

Business Impact

Retail Energy - Weather Hedging

Market	Exposure	Weather Station	Hedge Strategy
Georgia	Net long HDDs	Atlanta Hartsfield Jackson Airport	Utilize HDD swaps and purchase put options to mitigate warmer-than-normal weather and participate in colder-than-normal outcomes
Illinois	Net short HDDs • Short fixed bill • Long per therm	Midway Airport	Utilize HDD swaps to mitigate impacts from deviations from normal weather
Ohio	Net long HDDs	Cincinnati Airport	Utilize HDD swaps and purchase put options to mitigate warmer-than-normal weather and participate in colder-than-normal outcomes
FL, NY and MD	Net long HDDs	N/A	Each market’s weather risk is currently not material

Retail Energy - 2012 Priorities and Objectives

• Maintain Georgia market share and mitigate degradation of portfolio mix in a
mature market and difficult economy

• Integrate Nicor retail energy businesses to maintain business continuity and
generate customer growth

• Continue to grow customers and margins in expanded markets of Ohio,
Florida, New York and Maryland. We also continue to monitor and evaluate
new markets for potential entry.

• Position commercial business to create incremental value from asset
management and manage risks inherent in retail business

• Evaluate new products and services including:

o Introducing fixed bill product behind Georgia Natural Gas and evaluate
for other markets

o Development of plans for bundling gas commodity with warranty
products

Areas Served	Illinois, Indiana, Ohio
Customers (2011)	513,000
Employees	~ 420
EBIT (full year 2011)	$ 10 million

• Offer a suite of warranty protection and home solutions that include line repair (gas
and electric), equipment repair and maintenance

• Partner with utilities (Nicor Gas as well as third parties) to leverage inbound calls to
sell products and services

• Leverage partner utility’s brand

• Bill for products on utility bill

• Fulfill claims through network of in-house and third-party service providers

Retail Services - Overview

Line Repair

Gas Lines

Equipment Repair

Appliances

Home Systems

Electronics

Electric Repair

Electric Lines

Surge Protection

Maintenance

Heating & Cooling

Appliance Safety

Energy Efficiency

Increasing Customer Satisfaction

Retail Services - Product Offerings

• All customers are on a month-to-
month contract

• Warranty products are billed a fixed
monthly amount, which differs per
product, per market and range from
$3.95 to $63.95

• Services that are entitlement based
(a specific service is rendered as
part of the contract) are charged to
the customer on a monthly basis;
revenue is recognized at the lesser
of when the service is rendered or
the end of an annual period

Retail Services - Business Structure

• Claims

o Warranty claims - costs incurred
when warranty issues arise

o Entitlement claims - costs
incurred when customer requests
service

• Customer marketing

o Call center primary cost driver,
with additional marketing
expenses to contact customers
beyond the call

o Multiple structures for revenue
sharing/cost reduction for our
partners

• SG&A costs relatively fixed, with some
near-term opportunities to leverage
shared services model

Revenues

Expenses

• Nicor National formed in 1992 to provide self-administered Heating and A/C
Repair & Maintenance plans

• In 2000 Nicor National began taking calls for Nicor Gas and leveraged calls
to offer other products and services

• The relationship between Nicor National and Nicor Gas is governed through
an Operating Agreement approved by the ICC

• ICC issued a ruling in conjunction with merger approval stating that Nicor
Gas can no longer use its customer phone calls to offer products and
services

o Ruling expected, as discussions on operating agreement had been ongoing prior
to merger announcement

o No impact on existing customer base

o Nicor Services continues to market to prospective customers throughout Illinois
territory utilizing other methods

Retail Services - Nicor Gas Partnership

• Two types of competitors

o Utilities offering products and
services through affiliates
within own territories

o National warranty companies
offering products and services
through utilities and direct to
consumers

• Utility competitors include:

o Dominion Retail

o NiSource Retail

• National competitors include:

o Home Serve USA

o Macquarie Capital / Utility
Service Partners

o American Home Shield

o Cross Country Services

Retail Services - Competitive & Regulatory Overview

Regulatory oversight differs by state

• Illinois

o Company registered with
Department of Insurance

o Products regulated by Illinois
Service Contract Act

• Indiana

o Products regulated by Indiana
Department of Insurance

o Must maintain a funded reserve

• Ohio

o Products regulated by
Consumer Sales Practices
Code

• Georgia

o Products exempt from
insurance if backed by surety
bond

Competitive Landscape

Regulatory Overview

• Grow existing customer base and increase EBIT contribution to segment

• Implement new partnerships

o Georgia Natural Gas - Summer 2012

o Chattanooga Gas - Target Fall 2012*

o Virginia Natural Gas - Target Fall 2012*

o Other non-affiliated utility prospects - one for 2012

• Market to end use consumers using means other than the move calls

• Develop e-commerce strategy for customer self service and leverage social
media

• Leverage AGL Resources’ shared services

• Continue cost containment

Retail Services - 2012 Priorities and Objectives

*Assumes affiliate regulatory approvals are met

Wholesale Services

Pete Tumminello

EVP, Wholesale Services & President Sequent
Energy Management

Key 2011 Results - Wholesale Services

• 2011 EBIT down $44 million vs. 2010 due to
lower commercial activity

• Commercial activity lower by $45 million y/y

• $18 million related to Marcellus take-away
constraints

• $4 million related to customer bankruptcy

• Remainder due to ongoing low volatility and tight
storage and transportation spreads

• $21 million higher MTM gains/losses on hedges y/y

• $24 million higher LOCOM, net of current period
recoveries, y/y

Wholesale Operating Margin Components

Key 2011 Results Cont. - Wholesale Services

• Nicor Enerchange - consolidated fully with wholesale services segment

• Ongoing re-contracting of storage leases at significantly lower market rates

• Stabilized Marcellus pipeline constraint impacts by contracting for firm transportation
and storage

• Continued growth in gas-fired power generation and producer services volumes

• Purchasing first volumes from a renewable gas facility (landfill) and selling into
premium market

• Cost control measurers implemented with a 9% reduction in force in Q4 2011

• Competitors experiencing earnings challenges, resulting in selective industry
consolidation

• Actively managed open exposures, resulting in a relatively low average VaR of $1.6
million and consistent with historical periods

In any given year:

• Sequent has the ability to
capture value in a dynamic
environment

• 2007 - more “normal” levels of activity

• 2008 - price volatility and transportation gains

• 2009 - basis collapsed, storage spreads strong

• 2010 - expanded regions and new fee based
services, MW-West transportation spreads
weaker - East transport stronger

• 2011 - lower volatility and price spreads, shale
constraints

Sequent Asset Portfolio

Active Pipelines

Affiliate Asset Management Overview

• Affiliate asset management agreements core to Sequent’s business

• $192 million of life-to-date sharing payments under the asset agreements

• $69 million under the Atlanta Gas Light AMA ($9 million paid in 2011)

• $48 million under the Virginia Natural Gas AMA ($9 million paid in 2011)

• $44 million under the Elizabethtown Gas AMA ($9 million paid in 2011)

• $25 million under the Chattanooga Gas AMA ($3 million paid in 2011)

• $6 million under the Florida City Gas AMA ($2 million paid in 2011)

• Extended affiliate asset management transactions

• 3-year extension for Elizabethtown Gas through March 2014

• 4-year extension for Virginia Natural Gas through March 2016

• 5-year extension for Atlanta Gas Light through March 2017

• Remaining affiliate asset management agreements expire in 2013 and 2014

• Florida City Gas in March 2013

• Chattanooga Gas in March 2014

Growth in Fees & Services Business

Wholesale Services History

* Forecast

Credit Management and Review

• System resource capabilities leveraged to closely monitor exposure levels and activity

• Active management of reviews for creditworthiness

• Active participation in transaction structuring and negotiation of terms

• Full utilization of market intelligence sources

• Real-time communication regarding counterparty status and exposures

• Immediate elevation of issues through communication to Risk Management Committee, Sequent Credit Committee and
Treasury

Intrinsic Storage Spreads Widening Compared to Last Year

Intrinsic Spreads Year Ago to Expiry

January 3, 2011, Feb 11 / Jan 12 spread at $0.694

January 3, 2012, Feb 12 / Jan13 spread at $0.885

Source: NYMEX

Houston Ship Channel / Henry Hub

Henry Hub / TETCO M3

Transportation Spreads - East

2007

2010

2011

2012

East Cash Spreads 30-Day Moving Average

2007

2010

2011

2012

Transportation Spreads - West

West Cash Spreads 30-Day Moving Average

TETCO M3

Dominion

Forward Northeast Basis Curves

Calendar
2012

Calendar
2013

Calendar
2014

Clearport

Premium Northeast citygates
seeing pricing pressure due to
increases in supply from shale
and pipeline expansions

Dec 2011 vs. Dec 2010

Jan 2012 vs. Jan 2011

U.S. Temperatures

December & January
Average Anomaly from Prior
Year

• Majority of assets
contracted for 1-3 year
terms

• Rolling over most
agreements at lower
fixed payments

• Focus is more on
adding transportation
and storage assets at
lower rates at/near
intrinsic value

• Contracted for storage
in the West to add to
the portfolio

• Estimated EBIT benefit
of asset roll-off is
expected to be in the
range of 10% to 15%

Wholesale Services - Fixed Payment Obligations

Commitment Summary as of Dec. 31, 2011

($ in Millions)

2012 Industry Outlook

• Extremely low price spreads for storage and transportation remain the key fundamental
challenge

o Seeing storage spreads improve and transportation spreads decrease

• Rapid shale gas growth to-date likely to slow due to low prices caused by mild winter

o Although challenging for Sequent in Q3 2011, portfolio is better positioned to take
advantage of new constraints if they occur

• Continued focus on growing pipeline transportation portfolio through existing and expected
constraints - likelihood of constraints is reduced with lower gas rig count

• Fixed costs of asset portfolio remains high in 2012 with significant 50% drop off of fixed
costs in 2013

o 2012 is likely a year requiring patience as legacy asset costs roll-off

o 2013 fixed asset cost is projected to be $76 million less than in 2012 - a portion of this
will roll into income

• Competitor earnings challenges should lead to more wholesale consolidation

2012 Priorities & Objectives

• Expect to deliver $15 million to $30 million of EBIT

• Significantly grow fuel supply to power generators and other fee-based services

• Strategically enhance Sequent’s position in Canada to complement lower 48
states’ asset position

• Capitalize on areas of volatility - West/Midwest transport, East constraints

• Renew material AMA’s & asset portfolio at lower fixed costs

• Integrate Nicor wholesale business and combine C&I business into one system

• Extend Compass and Enerchange C&I growth

Midstream Operations

Pete Tumminello

EVP, Wholesale Services & President Sequent
Energy Management

Midstream - Commercial Storage Overview

• Customers include utilities, gas marketers and E&P companies

• Favorable storage locations with significant pipeline interconnectivity

• Our storage facilities provide customers with firm, interruptible, wheeling, and park
and loan services

Current operating facilities:

o Jefferson Island Storage & Hub (JISH)
near Henry Hub in South Louisiana

o Golden Triangle Storage (GTS) in East
Texas

o Central Valley Gas Storage (CVGS) in
Northern California

Focused on high deliverability salt dome and depleted reservoir storage facilities and related
business development opportunities.

Central
Valley
Gas
Storage

Golden
Triangle
Storage
and Hub

Jefferson
Island
Storage
and Hub

2011 Overview - Midstream Operations

• EBIT $3 million higher vs. last year

• Jefferson Island Storage & Hub

o 93% subscribed, inclusive of 2 Bcf under contract
with Sequent Energy Management

o 3 Bcf of subscribed capacity expires March 2012,
open season held with 1 Bcf re-contracted by
Sequent and expect remaining 2 Bcf to be closed
shortly

• Golden Triangle Storage

o Received FERC approval for Caverns 3 and 4

o Cavern 1 - 100% subscribed (2 Bcf expires March
2013), inclusive of 2 Bcf under contract by Sequent

o Cavern 2

o Leaching complete to 7.5 Bcf working
capacity, currently unsubscribed

o 64% of required pad gas currently hedged

o Pad gas and dewatering injections to begin
and in-service expected second-half of 2012

• Central Valley Gas Storage

o Construction commenced with wells drilled and
completed

o 15-mile pipeline to PG&E interconnect completed
and hydro-tested

o Required pad gas injections completed

o Customer nomination system implemented

$ in millions

Current and Forecasted Contracted Capacity Rates

Jefferson Island Storage & Hub

JISH Facility

• Purchased by AGLR in 2004 for $90 MM
and have since spent approximately $13
million on improvements and upgrades

• Two current caverns with combined 7.5Bcf
working gas capacity in operation since
1995

• Significantly upgraded the facility’s
compression, header and meter capacities

• 15 miles dual 16” header with 9
interconnects

• Injection / Withdrawal - 0.36 / 0.72 Bcf

JISH Expansion

• In June 2010, filed key applications for
Department of Natural Resources (DNR)
permit and Corps of Engineers permit

• Continue to seek permit approval

• Project will commence based on
commercial conditions and will consist of:

o Completing the raw water and disposal
well facilities

o Solution mining Caverns 3 & 4

o Adding 12 Bcf of working gas capacity

Delcambre

Erath

Jefferson Island
Storage and Hub

Columbia Gulf Transmission

Gulf South Pipeline

Natural Gas Pipeline Co. of America

Sabine Pipeline

Sea Robin Pipeline

Tennessee Gas Pipeline

Texas Gas Transmission

”

Pipelines

5.2 miles

Cavern #1

Cavern #2

4-12” Pipelines - 0.8 miles

Trunkline

Gas Pipeline

Columbia Gulf Transmission

Gulf South Pipeline

Natural Gas Pipeline Co. of America

Sabine Pipeline

Sea Robin Pipeline

Tennessee Gas Pipeline

Texas Gas Transmission

Crosstex LIG

9.4 miles

”

Pipelines

5.2 miles

Lake Peigneur

Jefferson Island Station
Facilities

Cavern #1

Cavern #2

Trunkline

2-16” Pipelines -

Golden Triangle Storage

GTS Facility

• FERC permitted December 2007

• Commenced construction May 2008

• Cavern 1 in-service with 6 Bcf working gas capacity

• Cavern 2 leached to 7.5 Bcf in February 2012

• Commercial service of Cavern 2 expected to begin in second half of 2012

• 9 miles of dual 24” pipeline with 6 interconnects

• Injection / Withdrawal - 0.30 / 0.60 Bcf

Contract Status - Cavern 1

• 2 Bcf firm capacity contracted for 4yr
term

• 2 Bcf firm capacity contracted for 3.5yr
term

• 2 Bcf firm capacity contracted for 1yr
term

Contract Plans - Cavern 2

• None currently subscribed but will
contract closer to in-service date

Capital Expenditures

• Total project cost remains consistent with
expectations of ~ $325 MM

Texas
Eastern

Houston
Pipeline

Florida Gas
Transmission

Kinder
Morgan
TX

Centana

Golden
Pass
Pipeline

Golden Triangle
Storage and Hub

Golden Triangle
Pipeline Header

2-24”

1-24”

2-24”

Orange
County

Neches
River

Beaumont

Cavern #1

Cavern #2

Central Valley Gas Storage

CVGS Facility

• Located in Colusa County ~ 60 miles north of Sacramento

• Commenced construction in April 2011

• Working capacity of 11.0 Bcf (10.5 Bcf first year / 11.0 Bcf thereafter)

• Expected in service Q2 2012 with 2 anchor shippers contracting for 3 Bcf of capacity

• Remaining working capacity contracts expected to be phased in beginning Q3 2012

• Directly connected to PG&E mainline through 14.7 miles of 24 inch line

• Injection / Withdrawal - 0.20 / 0.30 Bcf

Contract Status

• 2 Bcf firm capacity contracted for 2yr
term

• 1 Bcf firm capacity contracted for 3yr
term

• Optimizing and marketing remaining
capacity for 2012

Capital Expenditures

• Total project capital costs of ~ $158
million

Central Valley Gas
Storage

Market Fundamentals

• Storage fundamentals are cyclical - currently in low point of the cycle

o Natural gas market is growing

o Significant barriers now exist to develop new storage

• Natural gas in favor

o Commodity price of natural gas remains low relative to oil

o Initial production from new basins showing promise

o Renewable energy sources are growing, but economics often require subsidies

o Carbon / greenhouse gas legislation signifies shift away from coal and oil

• Salt-dome storage valuations remain high as compared to lease rates

• Growing gas-fired power generation market should require increased balancing
services

• Natural gas export market may significantly increase demand and increase gas
volatility

AGLR’s LNG Experience

AGLR LNG Business Perspectives

•Grow natural gas demand by pricing LNG on a cost plus basis

•Use existing idle LNG capacity to seed nodes of demand

•High horsepower/large users will be the early adopters

– Driven by lower natural gas prices relative to crude

– Class 8 trucking expected to emerge as incremental LNG supply becomes available

•Position Pivotal LNG to build LNG facilities to meet growing demand

• Operating LNG facilities since the 1970s

• Largest operator of liquefaction in the U.S. with
capacity of ~540,000 gpd

• Established Pivotal LNG to build, own, operate and sell
LNG

• Pivotal LNG acquired the Trussville LNG facility ~
60,000 gpd capacity

• 2011 LNG sales ~ 3 million gallons of LNG

• 2012 LNG sales capacity - over 100,000 gpd

• Own and operate 8 LNG tankers to facilitate deliveries

Trussville LNG

Natural Gas Affordable

Henry Hub
Close 1/20/12

$2.34/MMBtu

WTI Close
1/20/12

$98.15/BBl or
$16.85/MMBtu

2012 Priorities and Objectives

• Expect to deliver $0 to $5 million of EBIT

• Integrate and standardize policies, procedures and systems of the Nicor
storage facilities and of Trussville LNG with those of AGLR

• Jefferson Island Storage & Hub

o Contract 2 Bcf of capacity expiring in March 2012

o Continue permitting process for Caverns 3 & 4

o Evaluate expansion of existing caverns

• Golden Triangle Storage

o Complete pad and dewater gas injections and successfully put Cavern 2 in-service
second-half of 2012

o Contract 7.5 Bcf at Cavern 2

• Central Valley Storage

o Complete construction and successfully put facility in-service in Q2 2012

o Contract remaining 8 Bcf

• Pivotal LNG

o Upgrade Trussville LNG facility to round-the-clock operations

o Position for growth and elevate national profile in the growing LNG and CNG
markets as a substitute fuel industry

o Evaluate and permit sites for LNG plant locations

Cargo Shipping

Drew Evans

EVP & Chief Financial Officer

Cargo Shipping - Overview

Tropical Shipping

• Container shipping company started in 1963

• Directly serves 25 ports in the Bahamas and Caribbean, with cargo primarily
sailing southbound out of the Port of Palm Beach, FL and Saint John,
Canada

• Fleet of 12 owned and 2 chartered vessels

• Fleet of 11,200 containers and flat racks

• 2,900 temperature controlled (refrigerated) containers

• 7,200 non-temperature controlled (dry) containers and 1,100 flat racks

Seven Seas Insurance Company

• Affiliated company of Tropical Shipping that is
licensed to underwrite cargo insurance

Tropical Shipping - TEU Track Record

TEU Track Record

(Twenty Foot Equivalent Units)

Tropical Shipping - 2011 Highlights

• Lower Volumes

o Overall market contraction as consumer discretionary spend on tourism
has been slow to recover and construction has been severely curtailed

• Higher Vessel Fuel Costs

o Tropical experiences timing lags in cost recovery from customer
surcharges in periods of oil price escalation

• Higher Severance Expense

o Formation of a new management team and general workforce downsizing
associated with the reduction in market demand

See Inset

Palm

Beach

Nassau

Providenciales

Cayman

Guyana

Trinidad

Grenada

St. Lucia

Barbados

Dominica

San

Tortola

St. Thomas

St. Maarten

St.

Barths

Antigua

Nevis

St. Vincent

Grand Turk

St. Croix

Ports with direct service by
Tropical throughout the
Bahamas and the
Caribbean

Caucedo

Tropical Shipping - Service Territory

Tropical Shipping - 2011 Volumes

Revenue by Island Destination

Tropical Shipping - 2011 Revenue

Revenue by Product Mix

2011 Full Container Load Volumes by Service
Type

Tropical Shipping - 2011 FCL Volumes

• Despite the sharp economic downturn there has been no reduction in the number of
competitors

• Competitors have not materially rationalized their capacity to the lower market
demand

• We do expect some future capacity rationalization through competitor consolidation
and/or reduction in excess supply

• Tropical maintains a leading market share position in the majority of its markets

Tropical Shipping - Competitive Landscape

• A.M. Best Financial Strength
Rating of “A” (excellent)

• Approximately 40% of Tropical’s
Bills of Lading carry insurance
(concentrated in the LCL business)

• 67% of insurance premiums are
related to cargo moving on
Tropical vessels; 33% are related
to third party transportation
providers

• Loss ratio typically under 20%
(2011 = 12%)

• Operating margins typically in
excess of 60% (2011 = 70%)

Seven Seas Insurance - Overview

2011 Revenue Mix

100

Risks

• Continued fuel cost escalation

• Global carriers may seek to enter Tropical’s markets due to weakness in
their markets

• Potential change in global trade patterns and/or shift of business away
from U.S.-origin cargo could increase competition in our markets

Opportunities

• Increase market share through initiatives of new management team

• Continue reductions in fixed cost structure

• Deploy new capacity to replace poorly capitalized competitors who
ultimately exit certain markets or cease operations completely

Cargo Shipping - 2012 Risks and Opportunities

101

Q & A

102

Appendix and GAAP
Reconciliations

103

Key Income Statement Components

(in millions, for the year ended 12/31/11)

(1) Net Income reflected is Net Income Attributable to AGL Resources, excluding earnings attributed to SouthStar partner.

(2) Interest Expense for 2011 includes pre-funding for the Nicor merger.

(3) Nicor Merger Expense for 2011 represents O&M expense related to Nicor merger and excludes associated interest expense, noted in (2) above.

Income Statement Highlights

104

GAAP Reconciliation

The following table sets forth a reconciliation of AGL Resources’ operating margin to operating income and earnings before interest and taxes (EBIT) to
earnings before income taxes, net income to net income attributable to AGL - as reported and net income attributable to AGL - as adjusted, and net income
attributable to AGL - as adjusted - to diluted EPS - as adjusted for the twelve months ended December 31, 2011 and 2010.

105

GAAP Reconciliation

106

GAAP Reconciliation

107

The following tables set forth a reconciliation of AGL Resources’ Statement of Income to earnings before interest and taxes (EBIT) by segment for the
twelve months ended December 31, 2011 and December 31, 2010.

GAAP Reconciliation

108