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FINANCIAL HIGHLIGHTS

For the year ended December 31,
2008 2007 2006 2005 2004
Financial (dollars in millions)
Operating revenue $ 10,060.0 $ 7,282.6 $ 6,509.0 $ 6,476.9 $ 4,291.7
Net income 403.2 249.5 284.9 89.2 138.2
Adjusted operating income* 534.1 381.6 330.8 246.4 240.4
Adjusted net income* 349.4 281.1 228.8 143.7 141.4
Per Unit (In dollars)
Net income 3.63 2.45 3.62 1.06 2.06
Adjusted net income* 3.09 2.81 2.83 1.92 2.12
Cash distributions 3.88 3.725 3.70 3.70 3.70
Operating
Deliveries Liquids Segment (Bpd in thousands)
Lakehead System 1,620 1,543 1,517 1,339 1,422
North Dakota System 111 98 92 87 85
Mid-Continent System 231 236 244 236 237
Total 1,962 1,877 1,853 1,662 1,744
Deliveries Natural Gas Segment (Btu/d in billions)
East Texas System 1,479 1,180 1,019 860 676
Anadarko System 647 591 582 488 357
North Texas System 395 348 294 265 192
Other major systems 569 706 642 582 585
Total 3,090 2,825 2,537 2,195 1,810

* Adjusted to eliminate certain noncash items and sale of nonstrategic assets. (See reconciliations to GAAP measure below.)

Non-GAAP Reconciliations: Adjusted income figures are provided to illustrate trends absent certain unusual transactions–such as the occasional sale of nonstrategic assets–and excluding adjustments that affect earnings but do not impact cash flow, such as derivative fair value losses and gains. These noncash losses and gains result from fair market value adjustments for certain financial derivatives used by the Partnership for hedging purposes that, nevertheless, do not qualify for hedge accounting treatment as prescribed by Statement of Financial Accounting Standards No. 133,“Accounting for Derivative Instruments and Hedging Activities.”

ADJUSTED FINANCIAL HIGHLIGHTS

For the year ended December 31,
(Unaudited, in millions except per unit amounts) 2008 2007 2006 2005 2004
Operating income $ 587.9 $ 318.8 $ 386.9 $ 191.9 $ 237.2
Noncash derivative fair value losses (gains) (68.8) 62.8 (64.4) 56.3 3.2
Hurricane impact 15.0
Sale of assets          
Gain on sale of assets (18.1)
Settlement of financial instruments 16.3
NGL inventory charges 8.3
Adjusted operating income 534.1 381.6 330.8 246.4 240.4
Interest expense excluding MTM adjustments (180.6) (98.4) (110.5) (107.7) (88.4)
Rate refunds (13.6)
Other income 2.9 3.0 8.5 5.0 3.0
Income tax expense (7.0) (5.1)
Adjusted net income 349.4 281.1 228.8 143.7 141.4
Allocations to general partner (49.6) (38.3) (29.8) (24.6) (22.5)
Adjusted net income allocable to limited partners $ 299.8 $ 242.8 $ 199.0 $ 119.1 $ 118.9
Weighted average units 97.1 86.3 70.2 62.1 56.1
Adjusted net income per unit $ 3.09 $ 2.81 $ 2.83 $ 1.92 $ 2.12