Midstream Services

Superior Natural Gas Corporation

Since 1993, after ten years (1983-93) of steady decline in the price of natural gas, gas supply and demand has been more stable, though price volatility is still a significant factor. The nature of marketing natural gas is on a spot basis and requires a high level of expertise with regard to dependability and financial quality of our markets as well as complying with the latest transportation rules issued by FERC. A well-managed gas marketing effort continues to be an extremely important aspect of achieving the best pricing possible as well as making sure that the company’s gas flows during peak pricing periods. With spot markets and pipeline regulation changes it is necessary to monitor curtailments, delivery balancing, capacity problems and pricing on a daily basis. Since 1988, Walter has been able to meet the challenge of this changing environment through its gas marketing affiliate, Superior Natural Gas Corporation (SNGC). John Croft, Jr., a former Tenngasco employee (a subsidiary of Tenneco, Inc.), is the President and Chief Executive Officer of SNGC. SNGC sells most of Walter’s gas, as well as other companies' gas, directly to utilities and other end users, thus avoiding many marketing fees and broker commissions. Additionally, SNGC has been able to negotiate discounted transportation contracts with various pipelines and has been able to keep the company’s gas flowing during critical periods.

Vision Resources, Inc.

Vision provides crude oil and condensate marketing services to exploration and production companies in both the onshore continental United States and offshore in the Gulf of Mexico. Vision provides clients with cost effective marketing services to maximize their revenue from crude oil and condensate production. Services are tailored to meet the respective needs of its clients and may include purchasing crude oil and condensate directly and/or marketing crude oil production on client’s behalf. Additional services include review of crude oil and condensate sales agreements, production separation handling agreements, liquid transportation agreements, transportation options, crude oil trading, and support services including scheduling and associated accounting functions such as invoicing, pricing, volume and payment verification applicable to client production. In its purchasing activities, Vision is often required to ship the production on a number of pipelines and in so doing, is required to hold and maintain prescribed amounts of inventory within the respective pipelines.

Vision commenced operations January 1, 1991, as an affiliate of Walter Oil & Gas Corporation, and purchases most of the company’s crude oil and condensate production.