E

1
EP MA Market Update
2
EP MA Activity 2007 2008 YTD
3
EP MA Activity 2007 2008 YTD (continued)
4
EP MA Activity 2007 2008 YTD (continued)
5
EP MA Activity 2007 2008 YTD (continued)
6
EP MA Activity 2007 2008 YTD (continued)
7
EP Comparable Company Analysis
8
EP Comparable Company Analysis (continued)
9
EP Comparable Company Analysis (continued)
10
EP MLP MLP Charts and Data
11
MLP Markets Impacted by General Re-pricing of Risk

• AMZ has declined 15.5 from 52-week high
• Recent MLP market decline attributable to a
  combination of factors, including
• General re-pricing of sector risk
• Exit of significant amount of speculative funds
• Limited liquidity
• Distressed credit markets
• Commodity price volatility
• AMZ yield spread currently 311 bps over 10-Year
  Treasury

AMZ 6.64
10Yr 3.53
Source Bloomberg data as of April 7, 2008.
12
All MLP Sectors Affected

• All MLP industry sectors have been impacted in
  this correction
• Sector was clearly fully-valued in July 2007, but
  may be over-correcting into an oversold position

MLP 52-Week Price Performance
MLP Market Yields
Source Bloomberg data as of April 7, 2008.
13
MLP Market EnvironmentRelative Total Returns to
Investors

• The bursting of the dot-com bubble in April
  2000 launched an unprecedented bull market in MLP
  securities
• The MLP sector outperformed the SP 500 for the
  eighth consecutive year in 2007

Source Bloomberg as of April 7, 2008.
14
Equity Financing Volume Slows, And Returns to
Domestic Retail Systems

• MLP equity financing volume has grown steadily
  during the past decade
• Until recently, increasing volume of PIPE
  financings has contributed to a sharp decline in
  the equity sold through domestic retail systems
• However, PIPE financings were an early victim of
  the market correction, and issuers are again
  looking to retail systems as primary source of
  equity capital

PIPE/Registered Direct transactions have
represented 58 of all follow-on equity
financing volume in 2006 2008YTD
15
MLP Market Environment2007 Follow-On Equity
Financing Activity By Issue Type

• The decline of the PIPE market has been dramatic
  and has been driven by
• Exit of many hedge funds and other momentum
  investors
• Numerous large PIPE transactions being under
  water
• Large banks no longer willing to assume
  counterparty risk of total return swaps
• Increased issuer awareness of liquidity problems
  associated with large PIPE transactions
• Buyers insisting on 15 - 20 discounts from VWAP
  prices (versus 5 - 10 previously)

Source Dealogic. Note Excludes Targa
Resources Partners bought deal. Also excludes
follow-on offerings from Inergy Holdings,
Enterprise GP.
16
MLP Market EnvironmentMLP Initial Public
Offering Activity

• The general market correction in the MLP sector
  has brought IPO activity to a halt in 2008

Note Calumet is a specialty and refined products
company and Exterran Partners, L.P. is pipeline
compression company, both of which are new
categories for the MLP sector.
17
EP Master Limited PartnershipsSharp Correction
has Curtailed IPO Activity

• The slowdown in IPO activity has particularly
  affected the EP sector, which has experienced a
  sharp correction
• The average yield of EP sector MLPs has doubled
  since July 2007

Source Bloomberg data as of April 7, 2008.
18
MLP Market EnvironmentPostponements and
Withdrawals of MLP IPOs

• Due primarily to lower valuations and continued
  volatile market conditions, many proposed MLP
  IPOs have been postponed or withdrawn

(1) Was never registration but announced
intention to explore the formation of MLP in June
2007.(2) Was never but announced intention to
form midstream MLP in July 2007.
19
EP MLP Relative Price Performance
78.1
41.1
14.3
10.5
6.4
(0.0)
(4.7)
(16.4)
(16.9)
Source Bloomberg market data as of April 7, 2008.
20
US EP Flow-Throughs Size Growth
Market Cap at IPO 3.7 Billion
Current Market Cap 8.9 Billion
Note Market Cap as at April 7, 2008 unit
price.(1) Pro forma for acquisitions not
reflected in recent filings.
Significant growth in market capitalization
following IPO for most EP flow-throughs
21
Peer Group Current Distribution Yields
Note Market data as of April 7, 2008. Source
Bloomberg. (1) Alliance Holdings, Atlas,
Buckeye, Crosstex, Energy Transfer Equity,
Enterprise Holdings, Inergy, Kinder Morgan,
Magellan Midstream, Markwest Hydrocarbon, NuStar
GP. (2) Alliance, Natural Resource, Penn
Virginia. (3) Boardwalk, Buckeye, Enbridge,
Energy Transfer, Enterprise, Kinder Morgan,
Magellan, NuStar, ONEOK, Plains, TEPPCO. (4)
Atlas, Cheniere, Copano, Crosstex, DCP, Eagle
Rock, El Paso, Genesis, Global, Hiland, Holly,
Quicksilver, MarkWest, Martin, Regency, SemGroup,
Spectra, Sunoco, Targa, TC, Transmontaigne,
Williams Partners, Williams Pipeline
Partners. (5) As previously announced, management
intends to recommend to the Board of Directors an
increase in the annualized distribution to 1.73
per unit for Q1 2008. (6) As previously
announced, management intends to recommend to the
Board of Directors an increase in the annualized
distribution to 2.48 per unit for Q1 2008. (7)
As previously announced, management intends to
recommend to the Board of Directors an increase
in the annualized distribution to 1.78 per unit
for Q1 2008. (8) As previously announced,
management intends to recommend to the Board of
Directors an increase in the annualized
distribution to 2.30 per unit for Q1 2008 and
2.50 per unit by Q4 2008.
22
Peer Distribution Growth

• Note Market data as of April 7, 2008. Source
  Bloomberg, company filings and company press
  releases.
• As previously announced, management intends to
  recommend to the Board of Directors an increase
  in the annualized distribution to 2.48 per unit
  for Q1 2008.
• Alliance Holdings, Atlas, Buckeye, Crosstex,
  Energy Transfer Equity, Enterprise Holdings,
  Hiland, Inergy, Magellan Midstream, Penn Virginia
  GP, Valero GP.
• (3) As previously announced, management intends
  to recommend to the Board of Directors an
  increase in the annualized distribution to 2.30
  per unit for Q1 2008 and 2.50 per unit by Q4
  2008.
• (4) Alliance, Natural Resource, Penn Virginia.
• (5) As previously announced, management intends
  to recommend to the Board of Directors an
  increase in the annualized distribution to 1.73
  per unit for Q1 2008.
• (6) Atlas, Cheniere, Copano, Crosstex, DCP,
  Duncan, Eagle Rock, Genesis, Global, Hiland,
  Holly, MarkWest, Martin, Quicksilver, Regency,
  SemGroup, Spectra, Sunoco, Targa, TC,
  Transmontaigne, Williams.
• Boardwalk, Buckey, Enbridge, Energy Transfer,
  Enterprise, Kinder Morgan, Magellan, NuStar,
  ONEOK, Plains, TEPPCO.
• As previously announced, management intends to
  recommend to the Board of Directors an increase
  in the annualized distributionj to 1.78 per unit
  for Q1 2008.

23
EP Yield Total Return (IPO Present)
IPO Date
1/12/06
1/11/07
9/12/07
10/23/07
11/8/07
10/4/06
12/12/06
11/15/06
9/26/06
Source Bloomberg market data as of April 7,
2008.
24
Total Return Analysis

• Note Market data as of April 7, 2008. Source
  Bloomberg.
• SP 400 Oil Gas Exploration Production Index.
• Atlas Energy Resources, BreitBurn Energy
  Partners, Constellation Energy Partners, Encore
  Energy Partners, EV Energy Partners, Legacy
  Reserves, Linn Energy, Quest Energy Partners,
  Vanguard Natural Resources.
• San Juan Basin, Hugoton, Permian Basin, Sabine,
  Dominion Resources, Cross Timbers, Santa Fe
  Energy, Williams Coal Seam Gas, Mesa, Torch
  Energy, LLE, MV Oil Trust.

25
Commodity Price Relationship
Credit Crunch
70.6
61.8
12.5
8.9
Source Bloomberg market data as of April 7, 2008.
26
Issuers Increasingly Favoring Overnight
Transactions

• Skittish issuers are employing overnight
  strategies, and primarily targeting retail
  investors

Source Market data per FactSet as of April 7,
2008.
27
2007 2008YTD MLP Marketed Follow-On Offering
Performance
The average offering increased modestly one and
seven days after pricing
Source Dealogic data as of April 7, 2008.