Print Page | Close Window
SEC Filings
10-Q
SOUTHERN UNION CO filed this Form 10-Q on 05/09/2013
Entire Document
 << Previous Page | Next Page >>

Holdco Transaction
On April 30, 2013, ETP acquired from ETE its interest in Holdco for approximately 49.5 million of newly issued ETP common units and $1.40 billion in cash, less $68 million in estimated closing adjustments. Holdco is the entity formed by ETP and ETE in 2012 to own the equity interests in Southern Union and Sunoco. As a result of this transaction, ETP now owns 100% of Holdco.
Discontinued Operations
In December 2012, the Company entered into a purchase and sale agreement with The Laclede Group, Inc. pursuant to which Laclede Missouri has agreed to acquire the assets of the Missouri Gas Energy division and Laclede Massachusetts has agreed to acquire the assets of the New England Gas Company division (together, the “LDC Disposal Group”) for approximately $1.04 billion, subject to customary closing adjustments.  On February 11, 2013, The Laclede Group, Inc. announced that it had entered into an agreement with APUC that will allow a subsidiary of APUC to assume the rights of The Laclede Group, Inc. to purchase the assets of New England Gas Company, subject to certain approvals.  It is expected that the transactions contemplated by the purchase and sale agreements will close in the third quarter of 2013.  All periods reflected herein have been restated to present the LDC Disposal Group’s operations as discontinued operations in the consolidated statements of operations.  The LDC Disposal Group’s assets and liabilities have been reported as assets and liabilities held for sale as of March 31, 2013 and December 31, 2012.
Summarized financial information for Southern Union’s LDC Disposal Group is as follows:
 
 
Successor
 
 
Predecessor
 
 
Three Months Ended
March 31, 2013
 
Period from Acquisition (March 26, 2012) to March 31, 2012
 
 
Period from January 1, 2012 to March 25, 2012
Revenue from discontinued operations
 
$
246

 
$
8

 
 
$
190

Net income of discontinued operations, excluding effect of taxes and overhead allocations
 
56

 
1

 
 
27

The goodwill allocated to the LDC Disposal Group was $133 million at March 31, 2013.

4.
RELATED PARTY TRANSACTIONS:

Accounts receivable from related companies reflected on the condensed consolidated balance sheets primarily related to payroll funding and various administrative and operating costs paid by the Company on behalf of affiliates. Accounts payable from related companies primarily related to various administrative and operating costs paid by affiliates on behalf of the Company.

The following table provides a summary of the related party activity included in our condensed consolidated statements of operations. Prior period amounts were not included as they were immaterial.
 
 
Three Months Ended March 31, 2013
Operating revenues — ETP
 
$
20

Cost of natural gas and other energy
 
13

Operating, maintenance and general
 
25

Earnings from unconsolidated investments
 
1


The Company received $2 million in distributions related to its investment in ETP during the three months ended March 31, 2013.


8

 << Previous Page | Next Page >>