Master Limited Partnership Investor Conference

Master Limited Partnership Investor Conference

March 2007

1

Forward Looking Statements

NASDAQ: RGNC

This presentation may contain statements about future events and Regency Energy Partners LP’s (“Regency Energy Partners”, “Regency” or the “Partnership”) outlook and expectations, which are forward-looking statements. Although Regency believes that the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking statements are inherently uncertain and necessarily involve risks that may affect Regency’s business prospects and performance, causing actual results to differ from those discussed during this presentation.

Any forward-looking statements made are subject to all of the risks and uncertainties, many of which are beyond management’s control, involved in gathering, processing, marketing and transportation of natural gas and natural gas liquids, or NGLs. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, Regency’s actual results and plans could differ materially from those expressed in any forward-looking statements. These risks and uncertainties are discussed in more detail in Regency’s filings with the Securities and Exchange Commission, copies of which are available to the public.

The Partnership undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information or future events.

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Regency Energy Partners Overview

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Regency’s Role in the Industry

Wellhead

Gathering, Dehydration, and Compression

Treating and ProcessingMixed NGLs

Transmission Lines

MarketableNGL

Products

Markets

Wellhead

Gathering, Dehydration, and Compression

Treating and ProcessingMixed NGLs

Transmission Lines

MarketableNGL

Products

Markets

Midstream natural gas company offering comprehensive services from wellhead to market

4

Regency’s Formation and History

December 2004• HM Capital Partners

acquired Regency for $405 million and implemented comprehensive risk management strategy

April 2003• Regency established

as a standalone company

June 2003• Acquired midstream

assets from El Paso Field Services

March 2004• Acquired midstream

assets from Duke Energy Field Services

December 2005• Completed construction

of the Regency Intrastate Enhancement Project

February 2006• Completed initial public

offering, with an enterprise value of $1.1 billion

2006

2003

2004

2005

August 2006• Acquired TexStar

Field Services LP

September 2006• Completed private

equity placement totaling $60 million

December 2006• Completed private

placement of $550 million in seven-year senior notes

5

Regency Overview

1 Includes 2.0% General Partner Interest in Regency Energy Partners LP.2 Includes 506,500 restricted units that have been issued pursuant to the Regency Energy Partners LP Long Term Incentive Plan. 3 Includes 19,103,896 subordinated units.

Simplified Organizational ChartCapitalization as of 2/9/2007 Market Capitalization ($bn) 1.2 Enterprise Value ($bn) 1.9

Operating Statistics Pipeline (Miles) 4,746 Treating/Processing Plants 11 Compression (hp) 167,450 Throughput (Bcf/d) 1.1 Geographic Regions 5 Employees 280

Key Metrics

60.3% L.P. Interest

2.0% G.P. Interest

Gathering &Processing Segment

Public Unitholders15,656,500 Common Units2

Transportation Segment

61.2% L.P. Interest1

2.0% G.P. Interest

Private Investors2,857,143 Common Units

6.0% L.P. Interest 32.8% L.P. Interest

HM Capital Investors9,127,085 Common Units

19,103,896 Subordinated Units

Regency Energy Partners LPNASDAQ: RGNC

60.3% L.P. Interest

2.0% G.P. Interest

Gathering &Processing Segment

Public Unitholders15,656,500 Common Units2


61.2% L.P. Interest1

2.0% G.P. Interest

Private Investors2,857,143 Common Units

6.0% L.P. Interest 32.8% L.P. Interest

HM Capital Investors9,127,085 Common Units

19,103,896 Subordinated Units

Regency Energy Partners LPNASDAQ: RGNC

3

6

Strategically Located Platform of Assets

Regency’s core operations are located in the key natural gas producing basins of Texas, Louisiana, Kansas and Oklahoma

320 miles of intrastate pipeline600 miles of gathering pipeline5 processing plants Key Producers: Anadarko Petroleum, Chesapeake, Devon, Petrohawk, Samson

North Louisiana: TX-LA-MS Salt Province Basin

East Texas: East Texas Basin

371 miles of gathering pipeline2 processing/treating plants2

Key producers: Valence, Redmond

Mid-Continent: Hugoton/Anadarko Basin

1,600 miles of gathering pipeline2 processing plants 1

Key Producers: BP, Oxy, EOG, Anadarko Petroleum

West Texas: Permian Basin

750 miles of gathering pipeline1 processing plantKey producers: Exxon Mobil, Apache, Chevron, Duke

Corporate Office

Regional Office

Regency Gas System

Gas Treating / Processing Facility

South Texas: Western Gulf Basin

1,047 miles of gathering pipeline2 processing/treating plantsKey producers: BlackBrush, Escondido, Lewis, The Exploration Company

Notes:1 Includes the currently inactive Lakin plant.2 Includes the Como processing plant which was taken out of service March 2007.

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Gathering & Processing SegmentApproximately 4,400 miles of gathering pipelinesNine active processing plants with 845 MMcf/d throughput capacity 1

One stand-alone treating facility with 100 MMcf/d throughput capacity44% of volumes under fee-based contracts

Operations divided into Gathering & Processing Segment and Transportation Segment

Regency Operating Structure

Notes:1 Excludes the Lakin processing plant and the Como processing plant which was taken out of service in March 2007.2 For the LTM period ending September 30, 2006. Segment margin adjusted for unrealized hedging gains / losses.

Adjusted Segment Margin Contribution2

27.7%

72.3%

Gathering & Processing Transportat ion

Transportation Segment320 mile intrastate system extending from near the TX/LA border to Winnsboro, LA35 MMcf/d refrigeration plantDesign capacity is 910 MMcf/dIncludes Gulf States Transmission, a 10 mile 20-inch interstate pipeline that extends from Harrison County, Texas to Caddo Parish, Louisiana

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Name Title Years James Hunt Chairman, President & Chief Executive Officer 38

Michael Williams Executive Vice President & Chief Operating Officer 25

Stephen Arata Executive Vice President & Chief Financial Officer 15

Bill Joor Executive Vice President, Chief Legal and Administrative Officer and Secretary

40

Charles Davis Senior Vice-President, Corporate Development 20

Richard Moncrief Senior Vice President, Gas Supply and Business Development

25

Durell Johnson Vice President, Operations and Engineering 20

Lawrence Connors Vice President, Finance and Chief Accounting Officer 31

Experienced & Incentivized Management

Regency’s executives have an average of over 25 years of industry experience

Employees own 7.4% of the Limited Partner units and management owns 8.7% of the General Partner

Key Operational Highlights

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Transportation segment consists of RIGS, a 320-mile natural gas pipeline in north Louisiana and a 35 MMcf/d refrigeration plant for hydrocarbon dewpoint control

— Transports natural gas primarily from northwest Louisiana to northeast Louisiana where it connects to a number of interstate and intrastate markets

— Connected to 10 mile FERC regulated interstate pipeline (Gulf States Transmission)Completed the $30 million Bossier Loop project

— Expanded capacity of RIGS by adding additional looping and compression west of Haughton — RIGS design capacity increased to 910 MMCf/d

System MapLength (Miles) 320

Compression (hp) 27,400

Throughput Capacity (MMcf/d) 910

Market Outlets 11

Other Assets

– Haughton Plant 35 MMcf/d

Operating Statistics

Transportation throughput volumes provide stable, fee-based cash flow

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VERNON FIELD

SLIGOFIELD

ELM GROVEFIELD

VIXONFIELDDRISCOLL

FIELD

ADAFIELD

SIBLEYFIELD

WASKOMFIELD

CARTHAGEFIELD


Louisiana Basis Differential 1

Notes:1 Prices reflect the daily average over the stated period.

Source: Gas Daily

Centerpoint MarketNat Gas Price/MMBtu

2005: $7.802006: $6.01

Columbia Gulf MarketNat Gas Price/MMBtu

2005: $8.902006: $6.74

2005 Basis Differential: $1.102006 Basis Differential: $0.73

Connecting constrained supply to premium markets

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Gathering and Processing Segment

Providing integrated services across five geographic areas in the United States

Regency’s gathering and processing segment operates in LA, TX and the mid-continent region

Gathering and processing assets include: — 10 active processing plants 1, 2, 3

— 1 stand-alone treating facility— 2 inactive processing plant— Approximately 4,400 miles of gathering and pipeline infrastructure

Notes:1 Includes 35 MMcf/d Haughton plant, which is accounted for in the Transportation Segment.2 Excludes 35 MMMcf/d Como processing plant which was taken out of service in March 2007.3 Excludes 80 MMcf/d of throughput capacity available at Regency’s inactive Lakin processing facility.

Region Asset Type Facilities Length (Miles)

Compression(Horsepower)

Throughput Capacity (MMcf/d)

North Louisiana Gathering Pipelines – 600 24,255 300 Plants 1 5 – 14,417 525 East Texas Gathering Pipelines – 371 9,064 150 Plants 2 2 – 14,531 65 South Texas Gathering Pipelines – 1,047 14,652 800 Plants 2 – 2,400 110 West Texas Gathering Pipelines – 750 32,296 200 Plants 1 – 8,536 125 Mid-Continent Gathering Pipelines – 1,600 39,877 265 Plants 3 2 – 3,200 55

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North Louisiana

North Louisiana gathering system is connected to our RIGS systemRegion continues to experience significant levels of drilling activityRegency continues to expand regional footprint via additional organic growth projects

— Built two new $8 million dewpoint-control facilities (Elm Grove and Dubberly)— Spending $17 million to expand compression and gathering capacity in north

Louisiana

System Map

Plants 1 5

Gathering System Length (Miles) 600

Compression (hp)

– Pipeline 24,255

– Plant 14,417

Throughput (MMcf/d)

– Pipeline 300

– Plant 1 525 Note: 1 Includes 35 MMcf/d Haughton Plant, which is accounted for in the Transportation Segment.


DUBBERLYPLANT

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East Texas

Operating StatisticsSystem Map

Natural gas connected to these systems is typically high in hydrogen sulfide content. Both systems are connected to processing and treating facilities that include sulfur removal units

Plants 1 1


Compression (hp)

– Pipeline 9,064

– Plant 14,531

Throughput (MMcf/d)

– Pipeline 150

– Plant1 65 Note: Excludes the Como processing plant which was taken out of service in March 2007.

15


South Texas


Includes the Tilden System, Mainline System and various other gathering systems as well as a 50% interest in the Palafox Joint Venture

Natural gas exploration and production drilling in this area has primarily targeted productive Wilcox, Olmos, and Edwards zones in the Western Gulf Basin

$8 million La Salle County Project was completed in early November 2006

— Allows separation of sweet, rich gas packages for processing rather than blending with surrounding lean, sour gas

System MapPlants 2

Gathering System Length (Miles) 1,047

Compression (hp)

– Pipeline 14,652

– Plant 2,400

Throughput (MMcf/d)

– Pipeline 800

– Plant 110

16


West Texas


Increased natural gas exploration and production drilling in this area has primarily targeted productive Delaware and Devonian zones in the Permian Basin

Recent large oil and natural gas discoveries in the region by Chesapeake Energy Corporation and Anadarko Petroleum Company

Waha gathering system has a variety of market outlets, including several major interstate and intrastate pipelines serving the western and mid-continent regions of the United States as well as Texas natural gas markets

Plants 1


Compression (hp)

– Pipeline 32,296

– Plant 8,536

Throughput (MMcf/d)

– Pipeline 200

– Plant 125

System Map

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Mid–Continent

Located in two of the largest and most prolific natural gas producing regions in the United States: the Hugoton Basin in southwest Kansas and the Anadarko Basin in western Oklahoma and the Texas panhandle

Mature basins with stable average decline rates

Advances in technology have driven continued development of these basins

Operating StatisticsSystem MapPlant 1 2

Gathering System Length (Miles) 1,600

Compression (hp)

– Pipeline 39,877

– Plant 3,200

Throughput (MMcf/d)

– Pipeline 265

– Plant1 55 Note: 1 Excludes 80 MMCf/d of throughput capacity available at Regency’s inactive Lakin processing facility

Key Financial Highlights

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74% of Regency’s 2006 volumetric contract mix is fee-based

— Fees earned are volume driven and typically not affected by short-term changes in commodity prices

Regency has reduced its risk profile by successfully renegotiating keep-whole contracts into fee-based or POP contracts

Remaining keep-whole contracts commonly include one or more risk mitigants, such as

— Embedded fees

— Embedded discounts

— Conditioning floors

— Bypassability

Favorable contract mix and structure

Attractive Cash Flow Characteristics

2006 Pro Forma Volumetric Contracted Mix1

Note:1 YTD as of September 2006 includes Gathering and Processing Segment

and Transportation Segment Volumes

Keep-Whole6.0%

Percent of Proceeds20.0%

Fee74.0%

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Gathering and Processing Segment comprised of 44% fee–based contracts as measured by volume

Transportation Segment has become a larger part of the business since 2004

— Essentially all fee–based contracts

Segment Margin Contribution Analysis

Adjusted Segment Margin Contribution ($) 1 Adjusted Segment Margin Contribution (%) 1

Note:1 Segment margin adjusted for unrealized hedging gains / losses.

67.3 72.9

100.6

8.815.7

38.6

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

2004 2005 LTM 9/30/06

($m

m)

Gathering and Processing Adjusted Margin Transportation Segment Margin

88.4 82.372.3

11.6 17.727.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

2004 2005 LTM 9/30/06

(%)

Gathering and Processing Adjusted Margin Transportation Segment Margin

Favorable contract mix and structure

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Regency actively manages its commodity price exposure via an integrated strategy, including:

— Management of contract portfolio

— Matching indices used for purchases and sales of commodities

— Portfolio optimization by monitoring basis and other price differentials

— Derivative contracts

Regency uses swap contracts settled against natural gas, WTI, ethane, propane, butane, and natural gasoline to mitigate its exposure to commodity prices

As a result of Regency’s portfolio of contracts, the Company is a net seller of NGLs, condensate, and natural gas

Commodity Risk Management

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Unit Price Performance Since IPO (through 2/27/07)

$15.00

$17.00

$19.00

$21.00

$23.00

$25.00

$27.00

$29.00

$31.00

2/3/06

3/3/06

4/3/06

5/3/06

6/3/06

7/3/06

8/3/06

9/3/06

10/3/06

11/3/06

12/3/06

1/3/07

2/3/07

Regency’s total annualized return for 2006 was 46.1%

Master Limited Partnership Investor Conference

March 2007

Master Limited Partnership Investor Conference

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