2-for-1 stock split approved
$1 billion ETE common unit buyback program authorized and effective
immediately
$400 mm equity commitment to Regency Energy Partners for acquisition
of Eagle Rock Midstream assets
Major LNG milestone: Filed Draft Resource Report No. 13 for Lake
Charles LNG Export Project
DALLAS--(BUSINESS WIRE)--Dec. 23, 2013--
Energy Transfer Equity, L.P. (NYSE:ETE)
("ETE" or the “Partnership”) today announced that the board of directors
of its general partner has approved a series of measures to continue
ETE’s growth into 2014, including a two-for-one split of the
Partnership’s outstanding common units (“Unit Split”) and a $1 billion
buyback program for its common units.
The Unit Split will be effected by a distribution of one common unit for
each common unit outstanding and held by unitholders of record at the
close of business on January 13, 2014. The Unit Split is expected to be
completed on January 24, 2014. The buyback program will be put into
place immediately and will be available to be accessed by the
Partnership. The program is intended to be used opportunistically and
will be utilized and sequenced from time to time depending on the
trading price activity and performance for ETE's common units. The
common units will be repurchased in the open market at the Partnership’s
discretion. The Partnership may commence, suspend or discontinue
purchases of common units under this authorization at any time without
prior notice and any common units repurchased will be canceled.
Assuming approximately 280 million ETE common units outstanding as of
December 31, 2013, ETE expects to have approximately 560 million ETE
common units outstanding following completion of the Unit Split. The
Partnership’s quarterly distribution amount going forward will reflect
this Unit Split.
In addition, the Partnership will continue to support the continued
growth of the Energy Transfer family of partnerships and has committed
to purchase, at approximately today’s market price, $400 million of Regency
Energy Partners LP (NYSE:
RGP) common units as part of the consideration for RGP's
approximately $1.3 billion acquisition of the midstream business of
Eagle Rock Energy Partners. ETE will acquire approximately 16.5 million
RGP units effective as of and conditioned on the closing of that
transaction.
The Eagle Rock transaction is a compelling complement to Regency's
platform and the pro forma combination with PVR Partners. The cash flow
accretion from this transaction symbolizes Regency's commitment to
unitholder growth while being opportunistic. Regency is now positioned
firmly among the leaders in the broader MLP industry with a strong asset
base and excellent prospects for future growth. ETE’s purchase of $400
million of Regency common units demonstrates its commitment and
confidence in Regency’s successful future growth and value.
Finally, Trunkline LNG Export, LLC (“Trunkline”), a wholly owned
subsidiary of ETE and Energy Transfer Partners L.P. (NYSE:ETP),
has filed Draft Resource Report No. 13 (“Report”) with the Federal
Energy Regulatory Commission (“FERC”) for the Lake Charles LNG export
project (“LNG Project”).
The Report is a major milestone, and clears the way for Trunkline’s
filing of the LNG Project’s formal applications for FERC authorization.
The Report details engineering and design aspects of the LNG Project,
including the selection of the APCI liquefaction technology. The formal
FERC applications for authorization are expected to be filed by the end
of Q1 2014. Energy Transfer and BG Group expect to issue a request for
proposals relating to the LNG Project’s engineering, procurement and
construction contract in mid-2014. Pending final investment decisions
and receipt of all necessary approvals, construction is expected to
start in 2015, with first LNG exports anticipated in 2019.
Overall 2013 has been a landmark year for ETE and the Energy Transfer
family of partnerships, as evidenced by the great progress made by ETP
and the resulting restart of distribution increases, the transformation
for RGP, the continued industry-leading growth and performance at SXL,
the outperformance by the Sunoco retail business and the continued
progress made in developing the Lake Charles LNG export project. ETE
enters 2014 with tremendous confidence knowing that the prospects for
the broader Energy Transfer family of partnerships have never been
stronger and that this series of steps helps build on ETE's plan to
drive continued strong performance for ETE into 2014.
Energy Transfer Equity, L.P. (NYSE:ETE) is a master limited
partnership which owns the general partner and 100% of the incentive
distribution rights (IDRs) of Energy Transfer Partners, L.P. (NYSE:
ETP), approximately 49.6 million ETP common units, and approximately
50.2 million ETP Class H Units, which track 50% of the underlying
economics of the general partner interest and IDRs of Sunoco Logistics
Partners L.P. (NYSE: SXL). ETE also owns the general partner and 100% of
the IDRs of Regency Energy Partners LP (NYSE: RGP) and approximately
26.3 million RGP common units. The Energy Transfer family of companies
owns more than 56,000 miles of natural gas, natural gas liquids, refined
products, and crude oil pipelines.
Regency Energy Partners LP (NYSE: RGP) is a growth-oriented,
midstream energy partnership engaged in the gathering and processing,
contract compression, treating and transportation of natural gas and the
transportation, fractionation and storage of natural gas liquids. RGP
also owns a 30% interest in Lone Star NGL LLC, a joint venture that owns
and operates natural gas liquids storage, fractionation, and
transportation assets in Texas, Louisiana and Mississippi. Regency’s
general partner is owned by Energy Transfer Equity, L.P. (NYSE:ETE).
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited
partnership owning and operating one of the largest and most diversified
portfolios of energy assets in the United States. ETP currently has
natural gas operations that include approximately 43,000 miles of
gathering and transportation pipelines, treating and processing assets,
and storage facilities. ETP owns 100% of ETP Holdco Corporation, which
owns Southern Union Company and Sunoco, Inc., and a 70% interest in Lone
Star NGL LLC, a joint venture that owns and operates natural gas liquids
storage, fractionation and transportation assets. ETP also owns the
general partner, 100% of the incentive distribution rights, and
approximately 33.5 million common units in Sunoco Logistics Partners
L.P. (NYSE: SXL), which operates a geographically diverse portfolio of
crude oil and refined products pipelines, terminalling and crude oil
acquisition and marketing assets. ETP’s general partner is owned by
Energy Transfer Equity, L.P. (NYSE:ETE).
Forward-Looking Statements
Statements made in this press release may be forward-looking statements
as defined under federal law. These forward-looking statements rely on a
number of assumptions concerning future events and are subject to a
number of uncertainties and factors, many of which are outside the
control of ETE, and a variety of risks that could cause results to
differ materially from those expected by management of ETE. ETE
undertakes no obligation to update or revise forward-looking statements
to reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results over time.
The information contained in this press release is available on our
website at www.energytransfer.com.
Source: Energy Transfer Equity, L.P.
Investor Relations:
Energy Transfer
Brent
Ratliff, 214-981-0700
or
Media Relations:
Granado
Communications Group
Vicki Granado, 214-599-8785
214-498-9272
(cell)