OGE Energy (OGE)

Natural gas and NGL prices are volatile, and changes in these prices could adversely affect Enogex’s results of operations and cash flows.

Enogex is subject to risks due to frequent and often substantial fluctuations in commodity prices. Enogex’s results of operations and cash flows could be adversely affected by volatility in natural gas and NGL prices. Enogex’s gathering and processing margins generally improve when NGL prices are high relative to the price of natural gas. In the past, the prices of natural gas and NGLs have been extremely volatile, and Enogex expects this volatility to continue. With respect to natural gas, the mid-continent prices for natural gas, as represented by the Inside FERC monthly index posting for Panhandle Eastern Pipe Line Co., Texas, Oklahoma, for the forward month contract in 2006 ranged from a high of $8.76 per MMBtu to a low of $3.54 per MMBtu. In 2007, the same index ranged from a high of $6.82 per MMBtu to a low of $4.73 per MMBtu. In 2008, the same index ranged from a high of $11.07 per MMBtu to a low of $2.81 per MMBtu. Natural gas prices reached relatively high levels in mid-2008 due to the impact of rising demand for natural gas but have returned to the near $4.50 per MMBtu level due to a rapid decline in demand for natural gas. With respect to NGLs, the mid-continent prices for propane, for example, as represented by the average of the Oil Price Information Service daily average posting at the Conway, Kansas market, in 2007 ranged from a high of $1.52 per gallon to a low of $0.87 per gallon. In 2008, the same index ranged from a high of $1.76 per gallon to a low of $0.70 per gallon. Enogex’s future revenue and cash flows may be materially adversely affected if the midstream industry experiences significant, prolonged deterioration below general price levels experienced in recent years.

Natural gas and NGL prices are volatile, and changes in these prices could adversely affect Enogex’s results of operations and cash flows.

Enogex is subject to risks due to frequent and often substantial fluctuations in commodity prices. Enogex’s results of operations and cash flows could be adversely affected by volatility in natural gas and NGL prices. Enogex’s gathering and processing margins generally improve when NGL prices are high relative to the price of natural gas. In the past, the prices of
natural gas and NGLs have been extremely volatile, and Enogex expects this volatility to continue. With respect to natural gas, the mid-continent prices for natural gas, as represented by the Inside FERC monthly index posting for Panhandle Eastern Pipe Line Co., Texas, Oklahoma, for the forward month contract in 2006 ranged from a high of $8.76 per MMBtu to a low of $3.54 per MMBtu. In 2007, the same index ranged from a high of $6.82 per MMBtu to a low of $4.73 per MMBtu. In 2008,
the same index ranged from a high of $11.07 per MMBtu to a low of $2.81 per MMBtu. Natural gas prices reached relatively high levels in mid-2008 due to the impact of rising demand for natural gas but have returned to the near $4.50 per MMBtu level due to a rapid decline in demand for natural gas. With respect to NGLs, the mid-continent prices for propane, for example, as represented by the average of the Oil Price Information Service daily average posting at the Conway, Kansas
market, in 2007 ranged from a high of $1.52 per gallon to a low of $0.87 per gallon. In 2008, the same index ranged from a high of $1.76 per gallon to a low of $0.70 per gallon. Enogex’s future revenue and cash flows may be materially adversely affected if the midstream industry experiences significant, prolonged deterioration below general price levels experienced in recent years.

Natural gas and NGL prices are volatile, and changes in these prices could adversely affect Enogex’s results of operations and cash flows.

Enogex is subject to risks due to frequent and often substantial fluctuations in commodity prices. Enogex’s results of operations and cash flows could be adversely affected by volatility in natural gas and NGL prices. Enogex’s gathering and processing margins generally improve when NGL prices are high relative to the price of natural gas. In the past, the prices of natural gas and NGLs have been extremely volatile, and Enogex expects this volatility to continue. With respect to natural gas, the mid-continent prices for natural gas, as represented by the Inside FERC monthly index posting for Panhandle Eastern Pipe Line Co., Texas, Oklahoma, for the forward month contract in 2006 ranged from a high of $8.76 per MMBtu to a low of $3.54 per MMBtu. In 2007, the same index ranged from a high of $6.82 per MMBtu to a low of $4.73 per MMBtu. Natural gas prices reached relatively high levels in late 2005 due to the impact of Hurricanes Katrina and Rita but have returned to the near $6.00 per MMBtu level experienced over most of the period since 2004. With respect to NGLs, the mid-continent prices for propane, for example, as represented by the average of the Oil Price Information Service daily average posting at the Conway, Kansas market, in 2006 ranged from a high of $1.14 per gallon to a low of $0.90 per gallon. In 2007, the same index ranged from a high of $1.52 per gallon to a low of $0.87 per gallon. Enogex’s future revenue and cash flows may be materially adversely affected if the midstream industry experiences significant, prolonged deterioration below general price levels experienced in recent years.

Natural gas and NGL prices are volatile, and changes in these prices could adversely affect Enogex’s results of operations and cash flows.

Enogex is subject to risks due to frequent and often substantial fluctuations in commodity prices. Enogex’s results of operations and cash flows could be adversely affected by volatility in natural gas and NGL prices. Enogex’s gathering and processing margins generally improve when NGL prices are high relative to the price of natural gas. In the past, the prices of natural gas and NGLs have been extremely volatile, and Enogex expects this volatility to continue. With respect to natural gas, the mid-continent prices for natural gas, as represented by the Inside FERC monthly index posting for Panhandle Eastern Pipe Line Co., Texas, Oklahoma, for the forward month contract in 2006 ranged from a high of $8.76 per MMBtu to a low of $3.54 per MMBtu. In 2007, the same index ranged from a high of $6.82 per MMBtu to a low of $4.73 per MMBtu. Natural gas prices reached relatively high
levels in late 2005 due to the impact of Hurricanes Katrina and Rita but have returned to the near $6.00 per MMBtu level experienced over most of
the period since 2004. With respect to NGLs, the mid-continent prices for propane, for example, as represented by the average of the Oil Price Information
Service daily average posting at the Conway, Kansas market, in 2006 ranged from a high of $1.14 per gallon to a low of $0.90 per gallon. In 2007, the same index ranged from a high of $1.52 per gallon to a low of $0.87 per gallon.
Enogex’s future revenue and cash flows may be materially adversely affected if the midstream industry experiences significant, prolonged deterioration
below general price levels experienced in recent years.