FINANCIAL STATEMENTS ROCKIES EXPRESS PIPELINE LLC For the years ended December 31, 2018, 2017 and 2016 Report of Independent Auditors To the Board of Directors of Rockies Express Pipeline LLC We have audited the accompanying financial statements of Rockies Express Pipeline LLC, which comprise the balance sheets as of December 31, 2018 and 2017, and the related statements of income, members’ equity, and cash flows for each of the three years in the period ended December 31, 2018. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rockies Express Pipeline LLC as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in accordance with accounting principles generally accepted in the United States of America. PricewaterhouseCoopers LLP, 1900 16th Street, Suite 1600, Denver, CO 80202-5258 T: (720) 931 7000, F: (720) 931 7100, www.pwc.com/us Emphasis of Matters As described in Note 6 to the financial statements, the Company has significant transactions with related parties. As discussed in Notes 2 and 7 to the financial statements, the Company changed the manner in which it accounts for revenue in 2018. Our opinion is not modified with respect to these matters. Denver, Colorado February 8, 2019 2 ROCKIES EXPRESS PIPELINE LLC BALANCE SHEETS December 31, 2018 2017 (in millions) ASSETS Current Assets: Cash and cash equivalents..................................................................................... $ 1.1 $ 25.7 Accounts receivable, net........................................................................................ 76.8 75.8 Gas imbalances...................................................................................................... 7.4 6.3 Current portion of contract asset ........................................................................... 31.8 — Other current assets ............................................................................................... 3.6 14.6 Total Current Assets.......................................................................................... 120.7 122.4 Property, plant and equipment, net............................................................................. 5,759.0 5,939.2 Contract asset ............................................................................................................. 157.0 — Deferred charges and other assets .............................................................................. 15.2 11.8 Total Noncurrent Assets.................................................................................... 5,931.2 5,951.0 Total Assets................................................................................................................. $ 6,051.9 $ 6,073.4 LIABILITIES AND EQUITY Current Liabilities: Accounts payable................................................................................................... $ 21.0 $ 20.3 Accrued interest..................................................................................................... 39.0 56.3 Accrued taxes ........................................................................................................ 81.8 60.0 Current portion of long-term debt ......................................................................... 525.0 550.0 Accrued other current liabilities ............................................................................ 23.6 27.4 Total Current Liabilities.................................................................................... 690.4 714.0 Long-term Liabilities and Deferred Credits: Long-term debt, net ............................................................................................... 1,492.7 2,014.8 Other long-term liabilities and deferred credits..................................................... 10.2 34.5 Total Long-term Liabilities and Deferred Credits ............................................ 1,502.9 2,049.3 Commitments and Contingencies Members' Equity: Members' equity .................................................................................................... 3,858.6 3,310.1 Total Liabilities and Members' Equity ....................................................................... $ 6,051.9 $ 6,073.4 The accompanying notes are an integral part of these financial statements. 3 ROCKIES EXPRESS PIPELINE LLC STATEMENTS OF INCOME Years Ended December 31, 2018 2017 2016 (in millions) Revenues: Transportation services........................................................................ $ 907.7 $ 839.6 $ 715.1 Natural gas sales.................................................................................. 6.9 9.6 — Total Revenues................................................................................ 914.6 849.2 715.1 Operating Costs and Expenses: Cost of transportation services ............................................................ 32.3 29.8 26.5 Cost of natural gas sales ...................................................................... 5.0 7.3 — Operations and maintenance................................................................ 27.0 25.3 24.8 Depreciation and amortization ............................................................ 219.6 218.4 204.3 General and administrative.................................................................. 28.2 30.5 39.9 Taxes, other than income taxes............................................................ 85.3 65.3 71.9 Total Operating Costs and Expenses .............................................. 397.4 376.6 367.4 Operating Income..................................................................................... 517.2 472.6 347.7 Other (Expense) Income: Interest expense, net ............................................................................ (150.0) (168.0) (158.6) Gain on litigation settlement ............................................................... — 150.0 61.7 Other income, net ................................................................................ 2.3 3.4 27.7 Total Other Expense, net................................................................. (147.7) (14.6) (69.2) Net Income to Members........................................................................... $ 369.5 $ 458.0 $ 278.5 The accompanying notes are an integral part of these financial statements. 4 ROCKIES EXPRESS PIPELINE LLC STATEMENTS OF MEMBERS' EQUITY Rockies Express TEP REX Sempra REX Holdings, Holdings, Holdings, P66 REX Total LLC LLC LLC LLC (in millions) Members' Equity: Balance at January 1, 2016 ........................ $ 3,318.2 $ 1,659.0 $ — $ 829.6 $ 829.6 Net Income to Members .......................... 278.5 139.3 42.6 27.0 69.6 Contributions from Members .................. 304.9 152.5 50.0 26.2 76.2 Distributions to Members........................ (471.6) (235.8) (75.9) (42.0) (117.9) Transfer of equity interest........................ — — 840.8 (840.8) — Balance at December 31, 2016 .................. $ 3,430.0 $ 1,715.0 $ 857.5 $ — $ 857.5 Net Income to Members .......................... 458.0 131.1 212.4 — 114.5 Contributions from Members .................. 92.0 29.7 39.3 — 23.0 Distributions to Members........................ (669.9) (197.6) (304.8) — (167.5) Transfer of equity interest (see Note 1)... — (850.3) 850.3 — — Balance at December 31, 2017 .................. $ 3,310.1 $ 827.9 $ 1,654.7 $ — $ 827.5 Cumulative effect of ASC 606 implementation........................................ 125.2 51.0 42.9 — 31.3 Net Income to Members .........................