UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2010
ENERGY TRANSFER EQUITY,
L.P.
(Exact name of registrant as
specified in its charter)
Delaware | 1-32740 | 30-0108820 | ||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
3738 Oak Lawn
Avenue Dallas, TX |
75219 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: (214) 981-0700
(Former name or former address if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On May 6, 2010, Energy Transfer Equity, L.P. (the “Partnership”) issued a press release announcing its financial and operating results for the first quarter ended March 31, 2010. A copy of this press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 2.02 and in the attached exhibit shall be deemed to be “furnished” and not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. In accordance with General Instruction B.2 of Form 8-K, the information set forth in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act.
Exhibit Number | Description of the Exhibit | |
Exhibit 99.1
|
Energy Transfer Equity, L.P. Press Release dated May 6, 2010. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Energy Transfer Equity, L.P. | ||
By: | LE GP, LLC, its general partner |
|
Date: May 6, 2010
|
/s/ John W. McReynolds | |
|
||
|
John W. McReynolds President and Chief Financial Officer |
Exhibit Index
Exhibit Number | Description of the Exhibit | |
Exhibit 99.1
|
Energy Transfer Equity, L.P. Press Release dated May 6, 2010. |
March 31, 2010 | December 31, 2009 | |||||||
ASSETS |
||||||||
CURRENT ASSETS |
$ | 1,412,197 | $ | 1,267,959 | ||||
PROPERTY, PLANT AND EQUIPMENT |
10,274,322 | 10,117,041 | ||||||
ACCUMULATED DEPRECIATION |
(1,098,943 | ) | (1,052,566 | ) | ||||
9,175,379 | 9,064,475 | |||||||
ADVANCES TO AND INVESTMENTS IN AFFILIATES |
653,390 | 663,298 | ||||||
GOODWILL |
802,587 | 775,094 | ||||||
INTANGIBLES AND OTHER ASSETS, net |
447,568 | 389,683 | ||||||
Total assets |
$ | 12,491,121 | $ | 12,160,509 | ||||
LIABILITIES AND EQUITY |
||||||||
CURRENT LIABILITIES |
$ | 970,877 | $ | 889,745 | ||||
LONG-TERM DEBT, less current maturities |
7,465,027 | 7,750,998 | ||||||
LONG-TERM PRICE RISK MANAGEMENT LIABILITIES |
105,794 | 73,332 | ||||||
OTHER NON-CURRENT LIABILITIES |
226,552 | 226,183 | ||||||
COMMITMENTS AND CONTINGENCIES |
||||||||
8,768,250 | 8,940,258 | |||||||
PARTNERS CAPITAL |
60,306 | 152 | ||||||
NONCONTROLLING INTEREST |
3,662,565 | 3,220,099 | ||||||
Total equity |
3,722,871 | 3,220,251 | ||||||
Total liabilities and equity |
$ | 12,491,121 | $ | 12,160,509 | ||||
Three Months Ended March 31, | ||||||||
2010 | 2009 | |||||||
REVENUES: |
||||||||
Natural gas operations |
$ | 1,306,709 | $ | 1,111,955 | ||||
Retail propane |
533,439 | 487,907 | ||||||
Other |
31,833 | 30,112 | ||||||
Total revenues |
1,871,981 | 1,629,974 | ||||||
COSTS AND EXPENSES: |
||||||||
Cost of products sold natural gas operations |
912,606 | 732,113 | ||||||
Cost of products sold retail propane |
304,981 | 220,222 | ||||||
Cost of products sold other |
7,278 | 6,804 | ||||||
Operating expenses |
170,748 | 181,773 | ||||||
Depreciation and amortization |
86,331 | 75,659 | ||||||
Selling, general and administrative |
51,109 | 57,305 | ||||||
Total costs and expenses |
1,533,053 | 1,273,876 | ||||||
OPERATING INCOME |
338,928 | 356,098 | ||||||
OTHER INCOME (EXPENSE) |
||||||||
Interest expense, net of interest capitalized |
(121,671 | ) | (101,391 | ) | ||||
Equity in earnings of affiliates |
6,181 | 497 | ||||||
Losses on disposal of assets |
(1,864 | ) | (426 | ) | ||||
Gains (losses) on non-hedged interest rate derivatives |
(14,424 | ) | 10,051 | |||||
Allowance for equity funds used during construction |
1,309 | 20,427 | ||||||
Other, net |
834 | 701 | ||||||
INCOME BEFORE INCOME TAX EXPENSE |
209,293 | 285,957 | ||||||
Income tax expense |
5,211 | 6,207 | ||||||
NET INCOME |
204,082 | 279,750 | ||||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST |
91,305 | 128,214 | ||||||
NET INCOME ATTRIBUTABLE TO PARTNERS |
112,777 | 151,536 | ||||||
GENERAL PARTNERS INTEREST IN NET INCOME |
349 | 469 | ||||||
LIMITED PARTNERS INTEREST IN NET INCOME |
$ | 112,428 | $ | 151,067 | ||||
BASIC NET INCOME PER LIMITED PARTNER UNIT |
$ | 0.50 | $ | 0.68 | ||||
BASIC AVERAGE NUMBER OF UNITS OUTSTANDING |
222,941,108 | 222,898,065 | ||||||
DILUTED NET INCOME PER LIMITED PARTNER UNIT |
$ | 0.50 | $ | 0.68 | ||||
DILUTED AVERAGE NUMBER OF UNITS OUTSTANDING |
222,941,108 | 222,898,065 | ||||||
Three Months Ended March 31, | ||||||||
2010 | 2009 | |||||||
Distributable Cash Flow: |
||||||||
Cash distributions expected from Energy Transfer Partners, L.P. associated with: |
||||||||
General partner interest (1): |
||||||||
Standard distribution rights |
$ | 4,880 | $ | 4,860 | ||||
Incentive distribution rights |
94,917 | 84,146 | ||||||
Limited partner interest (1): |
||||||||
62,500,797 Common units |
55,860 | 55,860 | ||||||
Total cash distributions expected from Energy Transfer Partners, L.P. (2) |
155,657 | 144,866 | ||||||
Deduct expenses of the Parent Company on a stand-alone basis: |
||||||||
Parent Company related expenses |
(2,244 | ) | (1,902 | ) | ||||
Interest expense (excluding amortization of financing costs), interest income,
and realized gains and losses on interest rate derivatives |
(25,153 | ) | (20,462 | ) | ||||
Distributable Cash Flow |
$ | 128,260 | $ | 122,502 | ||||
Cash distributions to be paid to the partners of Energy Transfer Equity, L.P. (3): |
||||||||
Quarterly distribution per limited partner unit as of the end of the period |
$ | 0.5400 | $ | 0.5250 | ||||
Distributions to be paid to limited partners |
120,388 | 117,021 | ||||||
Distributions to be paid to general partner |
374 | 363 | ||||||
Total cash distributions to be paid to the partners of Energy Transfer
Equity, L.P.(3) |
$ | 120,762 | $ | 117,384 | ||||
Reconciliation of Non-GAAP Distributable Cash Flow to GAAP Net Income
Attributable to Partners and GAAP Net Cash Provided by Operating Activities
for the Parent Company on a stand-alone basis: |
||||||||
Net income attributable to partners |
$ | 112,777 | $ | 151,536 | ||||
Adjustment to derive to Distributable Cash Flow: |
||||||||
Equity in earnings of unconsolidated affiliates |
(146,378 | ) | (176,593 | ) | ||||
Cash distributions expected from Energy Transfer Partners, L.P. |
155,657 | 144,866 | ||||||
Amortization included in interest expense |
698 | 2,742 | ||||||
Other non-cash |
228 | 139 | ||||||
Unrealized (gains) losses on non-hedged interest rate swaps |
5,278 | (188 | ) | |||||
Distributable Cash Flow |
128,260 | 122,502 | ||||||
Adjustments to Distributable Cash Flow to derive Net Cash Provided by
Operating Activities: |
||||||||
Cash distributions expected from Energy Transfer Partners, L.P. |
(155,657 | ) | (144,866 | ) | ||||
Cash distributions received from Energy Transfer Partners, L.P. |
145,547 | 139,720 | ||||||
Deferred income taxes |
26 | | ||||||
Net changes in operating assets and liabilities |
688 | (2,752 | ) | |||||
Net cash provided by operating activities for the Parent Company on a
stand-alone basis |
$ | 118,864 | $ | 114,604 | ||||
(1) | For the three months ended March 31, 2010, cash distributions expected to be received from
Energy Transfer Partners, L.P. consists of cash distributions in respect of the quarter ended
March 31, 2010 payable on May 17, 2010 to holders of record on the close of business on May 7,
2010. For the three months ended March 31, 2009, cash distributions received from Energy
Transfer Partners, L.P. consists of cash distributions paid on May 15, 2009 for the quarter
ended March 31, 2009. |
|
(2) | Distributable Cash Flow previously presented in our press release for the three months ended
March 31, 2009 was reduced by $3.4 million of contributions made to ETP to maintain our
general partner interest at 2%. In July 2009, ETP amended and restated its partnership
agreement and as a result, we are no longer required to maintain a 2% general partner
interest. Consequently, our capital contributions to ETP have been removed from the
calculation of Distributable Cash Flow. |
|
(3) | For the three months ended March 31, 2010, cash distributions expected to be paid by Energy
Transfer Equity, L.P. consists of cash distributions in respect of the quarter ended March 31,
2010 payable on May 19, 2010 to holders of record on May 7, 2010. For the three months ended
March 31, 2009, cash distributions paid by Energy Transfer Equity, L.P. consists of cash
distributions paid on May 19, 2009 in respect of the quarter ended March 31, 2009. |