Building Blocks

Running head: BUILDING BLOCKS

Building Blocks

Southern Union Gas:

Missouri Division

Takesha L.Will

University Of Phoenix

Vernon Thatcher

MGT 330

June 12, 2002

Building Blocks

Overview:

Known as the 4th largest standing natural gas distributor, Southern Union Gas serves nearly 1.5 million customers Nationally, and Internationally, for over 50 years. They have four divisions in the United States, which are:

Ш Southern Union Gas in Texas. (Corporate Headquarters)

Ш Missouri Gas in Missouri.

Ш PG Energy in Pennsylvania.

Ш New England Gas in Rhode Island and Massachusetts.

Focus:

My focus for this report is the "building blocks" of the Management, and how it shapes the organizational functions of the Missouri division of Southern Union Gas. James H. Oglesby is the COO and President of the Missouri division. MGE (Missouri Gas) serves approximately 498,000 natural gas customers in central and western Missouri, including Kansas City, St. Joseph, Joplin and Monett. MGE has about 700 employees to serve its customers in 155 communities throughout Missouri.

Before accepting the title of COO (Chief of Operations), he was Vice President of Operations. He was promoted to this position after being employed with the company for 34 Years. His effiecency and knowledge company has taken the organization to new heights.

Objectives:

James Oglesby's objectives were to successfully achieve the critical mass needed to compete in a challenging, changing energy industry, and was successful in doing just that by offering electric and propane subsidiaries such as the newly opened PEI Power Corporation, a 25-megawatt co-generation plant which uses natural and methane gases to generate steam and electricity, to increase revenue and decrease competition.

This compliments the already effective natural gas operations. In doing so annual revenue has increased to more than 10.8 million dollars just within the first quarter results. While continuing to strengthen the core operations, in Missouri, he focused on propelling the organization to the forefront of the gas industry, and amplified the focus on business growth. Of course this built value to shareholders, and created a notable reputation of safety and quality.

Under new direction of new management, the Missouri division is expected to result in the annual addition of approximately 16.7 million in the next quarter, in pre-tax income to the company, due to new rates. The accomplishments of Oglesby show dedication to the rapid development, progression and outcome of Missouri Gas.

Article:

James H. Oglesby Named President and COO of Southern Union's MGE Division

February 2002 (Newstream) -- Southern Union Company ("Southern Union") (NYSE: SUG) announces the promotion of James H. Oglesby to president and chief operating officer of its Missouri Gas Energy ("MGE") division.

Oglesby joined MGE in 1968 as a service technician. Since then, he has held several positions of increasing responsibility in the operations area, including serving as vice president