“We are pleased with our first quarter of 2009 results in light of the challenging economic and commodity price conditions during the period. These results reflect stable overall volumes and the benefit of our commodity price risk hedging program, said John Eckel, Copano Energy’s chairman and chief executive officer.

First Quarter Financial Results

Total segment gross margin declined 14% to $52.5 million for the first quarter of 2009, from $61.3 million in the year-ago quarter

Adjusted EBITDA for the first quarter of 2009 declined 11% to $40.6 million compared with $45.8 million in the year-ago quarter. Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, adjusted to include Copano Energy’s share of depreciation, amortization and interest costs attributable to its unconsolidated affiliates. This adjustment equaled $6.9 million for the first quarter of 2009 compared with $8 million for the year-ago quarter. Non-cash charges incurred during the first quarter of 2009 that were not added back in determining adjusted EBITDA comprises amortization expense of $9.2 million related to the option component of Copano Energy’s risk management portfolio.

Total distributable cash flow for the first quarter of 2009, which comprises amortization expense related to the option component of the company’s risk management portfolio, totaled $35.1 million compared to $41.6 million in the year-ago quarter. First quarter 2009 total distributable cash flow represents 110% coverage of the first quarter 2009 distribution of $0.575 per unit. First quarter 2008 total distributable cash flow represented 164% coverage of the first quarter 2008 distribution of $0.53 per unit.

The major drivers of Copano Energy’s net income for the first quarter of 2009 compared to the first quarter of 2008 included:

— a decline in total segment gross margin of $8.8 million as a result of a $42.7 million decrease in operating segment gross margin, mainly reflecting average natural gas liquids (NGL) price declines of 57% at Conway and 58% at Mt. Belvieu, which was considerably counterbalance by an raise of the total segment gross margin of $33.9 Million from Copano Energy’s commodity risk management activities;

— an increase in operations, maintenance, depreciation and amortization expenses of $2.6 million mainly related to expanded operations in north Texas;

— a decline in general and administrative expenses of $1.1 million mainly related to decreased employee compensation and benefit expenses and third-party service providers’ costs

— a gain of $3.9 million related to the repurchase and retirement of $18.2 million aggregate principal amount of 7.75% senior unsecured notes due 2018 at market prices averaging 78% of the face amount of the notes; and

— a raise in interest expense of $2.7 million as a result of increased average outstanding borrowings counterbalanced by slightly lower average interest rates between the periods ($838.1 million at 7.37% in 2009 compared to $634.6 million at 7.42% in 2008)

Average borrowings increased to provide further liquidity and to finance Copano Energy’s expansion activities in north Texas and contributions to Bighorn Gas Gathering, L.L.C. (Bighorn) and Fort Union Gathering, L.L.C. (Fort Union).

Weighted average diluted units outstanding decreased slightly to about 57.8 million for the first quarter of 2009 compared with about 57.9 million in the year-ago quarter.

First Quarter Operating Results by Segment:

Copano Energy’s manages its business in three geographical operating segments: Oklahoma, Texas and the Rocky Mountains.

Oklahoma

The Oklahoma segment provides natural gas midstream services in central and east Oklahoma and also comprises a crude oil pipeline located in south Oklahoma and north Texas.

During the first quarter of 2009, segment gross margin for the Oklahoma segment decreased 59% to $15.1 million compared to $36.6 million for the year-ago quarter. The decrease resulted mainly from a 66% decline in realized margins on service throughput from the year-ago quarter or $0.62 per MMBtu in 2009 compared with $1.81 per MMBtu in 2008), reflecting lower NGL and natural gas prices. During the first quarter of 2009, NGL prices based on Conway index prices and Copano Energy’s weighted average product production mix averaged $24.13 per barrel compared with $56.33 per barrel during the year-ago quarter, a decline of $32.20, or 57%. During the first quarter of 2009, natural gas prices based on CenterPoint East index prices averaged $3.37 per MMBtu compared with $7.20 per MMBtu during the first quarter of 2008, a decrease of $3.83, or 53%.

The decline in segment gross margin for the Oklahoma segment was partly equalized by raised service and processing volumes. The Oklahoma segment gathered an average of 271,222 MMBtu/d of natural gas, processed an average of 160,181 MMBtu/d of natural gas and produced an average of 15,309 Bbls/d of NGLs at its own plants and third-party plants during the first quarter of 2009, representing increases of 22%, 6% and 5%, respectively, compared with the year-ago quarter. During the first quarter of 2008, the Oklahoma segment gathered an average of 222,006 MMBtu/d of natural gas, processed an average of 150,610 MMBtu/d of natural gas and produced an average of 14,543 Bbls/d of NGLs.

Texas

The Texas segment provides natural gas midstream services in Texas and also includes the Lake Charles, Louisiana processing plant.

Segment gross margin for the Texas segment decreased about 50% in the first quarter of 2009 to $20.6 million compared to $41.6 million for the year-ago quarter. The decline resulted mainly from a 47% decline in realized margins on service throughput from the first quarter of 2008 ($0.35 per MMBtu in 2009 compared with $0.66 per MMBtu in 2008), reflecting lower NGL prices. During the first quarter of 2009, NGL prices based on Mt. Belvieu index prices and Copano Energy’s weighted average product production mix averaged $25.89 per barrel compared with $61.01 per barrel during the year-ago quarter, a decrease of $35.12, or 58%.

The decline in segment gross margin for the Texas segment was also attributable to decreased service and processing volumes. During the first quarter of 2009, the Texas segment provided gathering, transportation and processing services for an average of 644,752 MMBtu/d of natural gas compared with 696,658 MMBtu/d for the year-ago quarter. The Texas segment gathered an average of 304,158 MMBtu/d of natural gas, processed an average of 558,195 MMBtu/d of natural gas and produced an average of 16,878 Bbls/d of NGLs at its plants and third-party plants during the first quarter of 2009, representing a 7% decline as compared with the year-ago quarter. The Houston Central plant operated in conditioning mode for six days during the first quarter of 2009, which decreased the average NGL production by about 829 Bbls/d for the quarter. During the first quarter of 2008, the Texas segment gathered an average of 327,998 MMBtu/d of natural gas, processed an average of 604,736 MMBtu/d of natural gas and produced an average of 18,082 Bbls/d of NGLs.

Cash Distributions

On April 15, 2009, Copano Energy’s announced a first quarter 2009 cash distribution of $0.575 per unit, or $2.30 per unit on an annualized basis, for all of its outstanding common units. This distribution is equal to its distribution of $0.575 per unit for the fourth quarter of 2008 and is payable on May 15, 2009 to common unitholders of record at the close of business on May 1, 2009.

Rocky Mountains

The Rocky Mountains segment operates in Wyoming’s Powder River basin and comprises Copano Energy’s managing member interests in Bighorn of 51% and in Fort Union of 37.04% and its producer services business.