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Exhibit 99.1


LIG PIPELINE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended March 31, 2004 and 2003
(in thousands)
(Unaudited)

 
   2004
   2003
  
Operating Revenues:              
  Transportation Revenues   $ 1,463   $ 1,522  
  Processing Revenues     17,247     14,443  
  Gas Sales     141,140     186,162  
  Gas Sales—Affiliated     41,430     62,978  
   
 
 
    Total Operating Revenues     201,280     265,105  

Operating Expenses:
 
 
 
 
 
 
 
  Gas Purchases     119,073     151,932  
  Gas Purchases—Affiliated     75,205     108,123  
  Operation and Maintenance     3,564     3,012  
  Administrative and General     1,357     944  
  AEPSC—Managerial and Professional     598     165  
  Depreciation and Amortization     912     917  
  Taxes Other Than Income Taxes     641     565  
   
 
 
    Total Operating Expenses     201,350     265,658  

Operating (Loss)
 
 
(70
)
 
(553
)

Nonoperating Income
 
 
83
 
 
833
 
Interest Income—Affiliated     108     607  
Interest Expense     46     372  
   
 
 
Income Before Income Taxes     75     (285 )
Income Tax Expense (Credit)     274     (426 )
Income (Loss) before Cumulative Effect     (199 )   141  
Cumulative Effect of Accounting Change (net of 288 tax)     —     534  
   
 
 
Net Income (Loss)   $ (199 ) $ 675  
   
 
 


LIG PIPELINE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

March 31, 2004 and December 31, 2003

(Unaudited)

 
   2004
   2003
  
 
   (in thousands)

  
ASSETS              

CURRENT ASSETS:
 
 
 
 
 
 
 
  Cash and Cash Equivalents   $ 160   $ 325  
  Advances to Affiliates     11,301     6,776  
  Accounts Receivable:              
    Trade Receivables     44,243     47,416  
    Affiliated Companies     15,048     4,995  
    Allowance for Uncollectible Accounts     (252 )   (252 )
  Materials and Supplies     637     585  
  Gas Inventory     181     134  
  Price-Risk Management Assets     106     169  
  Price-Risk Management Assets—Affiliates     2,550     17,490  
  Prepaid Taxes     1,029     1,211  
  Prepayments and Other     343     708  
   
 
 
TOTAL CURRENT ASSETS     75,346     79,557  
   
 
 
PROPERTY, PLANT AND EQUIPMENT:              
  Processing Equipment     36,108     36,108  
  Transmission     69,933     69,899  
  General     11,927     11,919  
  Construction Work In Progress     2,939     2,624  
   
 
 
    Total Property, Plant and Equipment     120,907     120,550  
  Less: Accumulated Depreciation and Amortization     17,561     16,681  
   
 
 
NET PROPERTY, PLANT AND EQUIPMENT     103,346     103,869  
   
 
 
Goodwill (Less Amortization of $268 as of March 31, 2004 and December 31, 2003)     525     525  
   
 
 
OTHER PROPERTY AND INVESTMENTS     637     637  
   
 
 
LONG-TERM PRICE-RISK MANAGEMENT ASSETS     2     —  
   
 
 
LONG-TERM PRICE-RISK MANAGEMENT ASSETS—AFFILIATES     —     77  
   
 
 
NONCURRENT ASSETS     6,987     7,718  
   
 
 
TOTAL ASSETS   $ 186,843   $ 192,383  
   
 
 


LIG PIPELINE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

LIABILITIES AND MEMBER'S CAPITAL

March 31, 2004 and December 31, 2003

(Unaudited)

 
   2004
   2003
  
 
   (in thousands)

  
LIABILITIES              
CURRENT LIABILITIES:              
  Advances from Affiliates   $ 118   $ 78  
  Accounts Payable—Trade     39,852     38,239  
  Accounts Payable—Affiliated Companies     16,087     19,140  
  Price-Risk Management Liabilities     12,355     14,574  
  Price-Risk Management Liabilities—Affiliates     —     2,778  
  Other     4,391     4,154  
   
 
 
    TOTAL CURRENT LIABILITIES     72,803     78,963  
   
 
 
DEFERRED INCOME TAXES     13,633     12,730  
   
 
 
NONCURRENT LIABILITIES     6,787     6,916  
   
 
 
LONG-TERM PRICE-RISK MANAGEMENT LIABILITIES—AFFILIATES     102     113  
   
 
 
MEMBER'S CAPITAL              
MEMBER'S CAPITAL:              
  Paid-in Capital     97,460     97,460  
  Accumulated Other Comprehensive Income (Loss)     —     (56 )
  Accumulated Deficit     (3,942 )   (3,743 )
   
 
 
    TOTAL MEMBER'S CAPITAL   $ 93,518     93,661  
   
 
 
TOTAL LIABILITIES AND MEMBER'S CAPITAL   $ 186,843   $ 192,383  
   
 
 


LIG PIPELINE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2004 and 2003

(Unaudited)

 
   2004
   2003
  
 
   (in thousands)

  
OPERATING ACTIVITIES:              
  Net Income (Loss)   $ (199 ) $ 675  
    Cumulative Effect of Change in Accounting Principles     —     (534 )
  Adjustments for Noncash Items:              
    Depreciation and Amortization     912     917  
    Deferred Income Taxes     (657 )   777  
    Fair Value of Price Risk Management Contracts     10,070     (484 )
  Changes in Certain Current Assets and Liabilities:              
    Accounts Receivable     (6,880 )   (52,691 )
    Gas Inventory     (47 )   3,637  
    Materials and Supplies     (52 )   (1 )
    Accrued Taxes     182     (839 )
    Accounts Payable     (1,440 )   58,243  
  Other, Net     7,325     2,608  
   
 
 
Net Cash Flows From Operating Activities     9,214     12,308  
   
 
 

INVESTING ACTIVITIES:
 
 
 
 
 
 
 
  Gross Property Additions     (4,894 )   (270 )
   
 
 
Net Cash Used For Investing Activities     (4,894 )   (270 )
   
 
 

FINANCING ACTIVITIES:
 
 
 
 
 
 
 
  Change in Advances from/to Affiliates, Net     (4,485 )   (12,990 )
   
 
 
Net Cash Flows Used For Financing Activities     (4,485 )   (12,990 )
   
 
 

NET DECREASE IN CASH
 
 
(165
)
 
(952
)

CASH AT BEGINNING OF PERIOD
 
 
325
 
 
1,400
 
   
 
 

CASH AT END OF PERIOD
 
$
160
 
$
448
 
   
 
 

        Cash paid (received) for income taxes was $.1 million and $.4 million and for interest was $(.2) million and $1.7 million in 2004 and 2003, respectively.


LIG PIPELINE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF MEMBER'S CAPITAL AND
COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended March 31, 2004 and 2003

(Unaudited)

(in thousands)

 
   Accumulated
Other
Comprehensive
Income (Loss)
   Paid-in
Capital
   Accumulated
Deficit
   Total
Member's
Capital
  
January 1, 2003   $ (609 ) $ 115,960   $ (700 ) $ 114,651  

Comprehensive Income (Loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss) Cash Flow Hedges     609                 609  
Net Income                 675     675  
   
 
 
 
 
March 31, 2003   $ —   $ 115,960   $ (25 ) $ 115,935  
   
 
 
 
 
January 1, 2004   $ (56 ) $ 97,460   $ (3,743 ) $ 93,661  

Capital Payment to Parent
 
 
56
 
 
 
 
 
 
 
 
56
 

Comprehensive Income (Loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss)                          
  Cash Flow Hedges                          

Net Income (Loss)
 
 
 
 
 
 
 
 
(199
)
 
(199
)
   
 
 
 
 
March 31, 2004   $ —   $ 97,460   $ (3,942 ) $ 93,518  
   
 
 
 
 



QuickLinks

LIG PIPELINE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended March 31, 2004 and 2003 (in thousands) (Unaudited)
LIG PIPELINE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS March 31, 2004 and December 31, 2003 (Unaudited)
LIG PIPELINE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS LIABILITIES AND MEMBER'S CAPITAL March 31, 2004 and December 31, 2003 (Unaudited)
LIG PIPELINE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2004 and 2003 (Unaudited)
LIG PIPELINE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF MEMBER'S CAPITAL AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2004 and 2003 (Unaudited) (in thousands)