Merger Creates Second-Largest MLP with a Unique Diversified Platform
DALLAS--(BUSINESS WIRE)--Apr. 30, 2015--
Energy Transfer Partners, L.P. (NYSE: ETP) (“ETP”) and Regency Energy
Partners LP (NYSE: RGP) (“Regency”) today announced the completion of
their previously announced merger of an indirect subsidiary of ETP, with
and into Regency, with Regency surviving the merger as a wholly owned
subsidiary of ETP.
Effective with the opening of the market today, Regency ceased to be a
publicly traded partnership, and its common units discontinued trading
on the NYSE.
As part of the merger consideration, each Regency common unit and Class
F unit will be converted into the right to receive 0.4124 ETP common
units. Based on the RGP units outstanding, ETP issued approximately
172.154 million ETP common units to RGP unitholders, including
approximately 15.526 million units issued to ETP subsidiaries. The
approximately 1.913 million outstanding Regency Series A preferred units
were converted into corresponding new ETP Series A preferred units.
In connection with the transaction, Energy Transfer Equity, L.P. (NYSE:
ETE), which owns the general partner and 100% of the incentive
distribution rights (IDRs) of ETP, will reduce the incentive
distributions it receives from ETP by a total of $320 million over a
five-year period. The IDR subsidy will be $80 million in the first year
post-closing and $60 million per year for the following four years.
Further details of the merger will be discussed on ETP’s earnings call
scheduled for May 7, 2015, at 8:00 a.m. Central Time. The conference
call will be broadcast live via an internet web cast, which can be
accessed through www.energytransfer.com.
The call will also be available for replay on Energy Transfer’s website
for a limited time.
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’s subsidiaries
include Panhandle Eastern Pipe Line Company, LP (the successor of
Southern Union Company) and Lone Star NGL LLC, which owns and operates
natural gas liquids storage, fractionation and transportation assets. In
total, ETP currently owns and operates more than 62,000 miles of natural
gas and natural gas liquids pipelines. ETP also owns the general
partner, 100% of the incentive distribution rights, and approximately
67.1 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 owns 100% of Sunoco, Inc. and 100% of Susser
Holdings Corporation. Additionally, ETP owns the general partner, 100%
of the incentive distribution rights and approximately 43% of the
limited partner interests in Sunoco LP (formerly Susser Petroleum
Partners LP) (NYSE: SUN), a wholesale fuel distributor and convenience
store operator. ETP’s general partner is owned by ETE. For more
information, visit the Energy Transfer Partners, L.P. website at www.energytransfer.com.
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 23.5 million ETP common units, and approximately
82.6 million ETP Class H Units, which track 90% of the underlying
economics of the general partner interest and IDRs of Sunoco Logistics
Partners L.P. (NYSE: SXL). On a consolidated basis, ETE’s family of
companies owns and operates approximately 71,000 miles of natural gas,
natural gas liquids, refined products, and crude oil pipelines. For more
information, visit the Energy Transfer Equity, L.P. website at www.energytransfer.com.
Forward Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject to a
variety of known and unknown risks, uncertainties, and other factors
that are difficult to predict and many of which are beyond management’s
control. An extensive list of factors that can affect future results,
including risks related to the merger, are discussed in the
Partnership’s Annual Report on Form 10-K and other documents filed from
time to time with the Securities and Exchange Commission. The
Partnership undertakes no obligation to update or revise any
forward-looking statement to reflect new information or events.
The information contained in this press release is available on ETP’s
website at www.energytransfer.com.
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Source: Energy Transfer Partners, L.P. and Regency Energy Partners LP
Energy Transfer Partners, L.P.
Vice President, Investor Relations
Director, Finance & Investor Relations
Granado Communications Group