View:
 Energy
Transfer Partners, L.P. Barclays Capital Investment Grade
Energy and Pipeline Conference
March 7, 2012
Michael Doss
Vice President -
Finance
Filed by Energy Transfer Equity, L.P.
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12 under the
Securities Exchange Act of 1934
Subject Company: Southern Union Company
Commission File No.: 1-06407 |
 2
Legal Disclaimer
This presentation may contain statements about future events, outlook and
expectations of Energy Transfer Partners, L.P. (ETP), Energy Transfer
Equity, L.P. (ETE), and/or Southern Union Company (SUG, and together with
ETP and ETE, the “Companies”) all of which are forward-looking statements.
Any
statement
in
this
presentation
that
is
not
a
historical
fact
may
be
deemed
to
be
a
forward-looking
statement. These forward-looking statements rely on a number of
assumptions concerning future events that are believed to be reasonable, but
are subject to a number of risks, uncertainties and other
factors,
many
of
which
are
outside
the
Companies’
control,
and
which
could
cause
the
actual
results, performance or achievements of the Companies to be materially different.
While the Partnerships believe that the assumptions concerning future events
are reasonable, we caution that there are inherent difficulties in
predicting certain important factors that could impact the future
performance or results of our businesses. These risks and uncertainties are
discussed in more detail in the filings made by the Companies with the
Securities and Exchange Commission, copies of which are available to the
public. The Companies expressly disclaim any intention or obligation to revise or
publicly update any forward-looking statements, whether as a result of new
information, future events, or otherwise.
All references in this presentation to capacity of a pipeline, processing plant or
storage facility relate to maximum capacity under normal operating
conditions and with respect to pipeline transportation capacity and is
subject to multiple factors (including natural gas injections and withdrawals at various
delivery points along the pipeline and the utilization of compression) which may
reduce the throughput capacity from specified capacity levels.
|
 ETP
Overview |
 4
ETP Overview
•
Energy Transfer Partners, L.P. (“ETP”) is one of the largest publicly
traded investment grade MLPs –
$1.74 billion of Adjusted EBITDA in 2011
–
Equity
market
capitalization
of
approximately
$10.7
billion
and
an
enterprise
value
of
$18.4
billion
1,2
–
More than $15.5 billion of total assets
•
We have a diversified portfolio of natural gas and natural gas liquids assets
strategically positioned to serve many of the major North American natural
gas producing basins –
Approximately 18,000 miles of intrastate and interstate natural gas pipelines
–
74 Bcf of working natural gas storage capacity
–
More than 1,400 miles of NGL pipeline
–
NGL storage (Mont Belvieu and Hattiesburg Storage) and fractionation
facilities •
The last year has been transformative for ETP as we:
–
Entered
the
NGL
business
through
our
Lone
Star
joint
venture
and
its
acquisition
of
LDH
Energy
–
Contributed our Propane business to AmeriGas
–
Announced the pending acquisition of SUG’s 50% interest in Citrus
–
Announced
more
than
$3.0
billion
of
organic
growth
opportunities
with
a
focus
on
liquids
rich
opportunities
in the
Eagle Ford, Permian, and Woodford areas
•
Throughout
this
transformation,
we
have
continued
to
demonstrate
our
commitment
to
investment
grade
ratings by:
–
Focusing on long-term, fee-based contracts
–
Significantly improving our business profile
–
Managing commodity exposure through the use of hedges
–
Applying cash proceeds from the Propane Contribution to reduce indebtedness
–
Issuing more than $3.5 billion in equity over the past three years to fund
growth 1
As of March 1, 2012. Excludes the value of incentive distribution rights
(IDRs) held by ETE 2
Includes net debt as of December 31, 2011
1 |
 5
ETE Pro Forma Organizational Structure
Energy Transfer Equity, L.P.
(NYSE: ETE)
NGL
Interstate Transportation
Midstream
70%
30%
Contract Treating
Joint Ventures
Gathering & Processing
Southern Union Co.
Intrastate Transportation & Storage
LDCs
Panhandle Companies
SUGS
Lone Star NGL
Ownership in RGP
100% RGP IDRs
1.8% General Partner Interest
26.3mm LP units (17% of total)
Ownership in ETP
100% ETP IDRs
1.5% General Partner Interest
50.2mm LP units (22% of total)
Ownership in SUG
100% SUG Shares
Citrus
FEP
50%
50%
Contract Compression
Regency Energy Partners LP
(NYSE: RGP)
Energy
Transfer
Partners,
L.P.
(NYSE: ETP) |
 6
ETP Pro Forma Asset Overview
Note: Includes assets under construction |
 Business
Update |
 8
ETE’s Acquisition of SUG
•
ETE’s acquisition of Southern Union Company (SUG) is on track to close this
month –
Final regulatory approval was received on February 29, when the Missouri Public
Service Commission approved the transaction
–
Election forms have been mailed to SUG shareholders, who have until March 19 to
respond with their desired mix of ETE units and/or cash
–
Shareholders may choose to receive, in aggregate, a minimum of 50% cash (50% units)
with up to a maximum of 60% cash (40% units)
–
ETE has launched an institutional term loan of up to $2.3 billion that will be used
to fund a portion of the cash consideration to be paid to SUG
shareholders •
As part of the SUG Acquisition, ETP agreed to acquire a 50% interest in Citrus for
$2.0 billion, consisting of $1.895 billion of cash and $105 million of ETP
common units –
$445
million
of
the
cash
proceeds
from
the
sale
of
Citrus
to
ETP
will
be
used
to
repay
existing
SUG indebtedness
–
The remaining $1.45 billion will be used to fund a portion of the cash
consideration to be paid to SUG shareholders
–
On January 9, 2012, ETP priced $2.0 billion of senior notes to pre-fund the
Citrus Acquisition (a portion of the proceeds were used for transaction
expenses and general partnership purposes) |
 9
ETP Propane Contribution
•
ETP’s contribution of its retail propane business to AmeriGas Partners, L.P.
(APU) closed on January 12, 2012 •
As consideration for the contribution, ETP received:
–
$1.46 billion of cash
•
Cash proceeds were used to repay borrowings under ETP’s revolving credit
facility and fund a $750 million tender offer for outstanding senior notes
–
29.6 million APU common units (market value of $1.3 billion) which represent
approximately 34% of pro forma APU common units outstanding
•
The APU units, which ETP is required to hold through the end of 2012, are expected
to provide more than $90 million of annual cash distributions to ETP
–
In addition, AmeriGas assumed approximately $71 million of existing debt
•
With this transaction, ETP:
–
Increases percentage of revenue attributable to fee-based operations with
long-term contracts –
Reduces its exposure to the commodity-sensitive, seasonal propane sector
–
Lowers its indebtedness
–
Mitigates near-term capital markets funding requirements
|
 10
•
ETP launched a $750 million tender offer on January 9, 2012
•
The offer included two components:
–
An “Any-and-All”
offer for ETP’s 5.65% senior notes due 2012
–
A “Maximum Tender Offer”
for ETP’s 2013, 2014, and 2019 senior notes
•
A total of $750 million (principal amount) was tendered as follows:
–
$292 million of the 5.65% due 2012
–
$200 million of the 9.70% due 2019
–
$200 million of the 9.00% due 2019
–
$58 million of the 8.50% due 2014
•
The total cost of the tender offer was $863 million
•
As a result, ETP:
–
Reduced indebtedness
–
Reduced future capital markets risk by taking out a portion of 2012 and 2014 debt
maturities –
Lowered
annual
interest
expense
by
$55
-
$60
million
ETP Tender Offer |
 11
ETP Has a Robust Portfolio of Attractive Projects
Project
Description
Capacity
Expected
Completion
Estimated Cost
($ mm)
Midstream
Dos Hermanas
Pipeline
50-mile, 24-inch pipeline originating in northwest Webb County and extending to ETP's
existing Houston Pipeline rich gas gathering system in eastern Webb County
400 MMcf/d
In-service
Q4 2010
$43
Chisholm Pipeline
83 mile, 20-inch pipeline extending from DeWitt County to ETP's La Grange Processing Plant
in Fayette County
100 MMcf/d, expandable
to 300 MMcf/d
In-service
Q2 2011
$68
REM Phase I
160-mile, 30-inch pipeline originating in Dimmitt County and extending to the Chisholm
Pipeline for ultimate delivery to ETP’s processing plants
400 MMcf/d, expandable to
800 MMcf/d
In-service
Q4 2011
$230
Chisholm Plant
Natural gas processing plant located adjacent to ETP's existing La Grange Plant in Fayette
County 120 MMcf/d
Q1 2012
$70
REM Phase II
70 mile, 42-inch pipeline expansion, which will extend from the Chisholm Pipeline in
DeWitt County east into Jackson County
800 MMcf/d
Q4 2012
$170
400 MMcf/d, Phase I
Q1 2013
$400
200 MMcf/d, Phase II
Q1 2014
200 MMcf/d, Phase III
Q1 2014
Red River Gathering
Pipeline & Godley
117-mile, 24- and 30-inch pipeline from Carter County, Oklahoma to ETP's Godley
Plant in Johnson County, Texas
450 MMcf/d, expandable to
550 MMcf/d
Q4 2012
$360
Godley Plant
Expansion
Cryogenic processing plant to be constructed at the Godley processing facility in Johnson
County, Texas
200 MMcf/d
Q4 2013
Karnes County
Processing Plant
Natural gas processing plant located in Karnes County
200 MMcf/d
Q4 2012
$210
REM Expansion
37 miles, 30-inch pipeline expansion
-
Q4 2013
Sub-total
$1,551
NGL (ETP)
Freedom Pipeline
43-mile, 8-inch NGL pipeline connecting the Liberty pipeline to ETP's La Grange &
Chisholm plants 40 Mbpd
In-service
Q3 2011
$30
Liberty Pipeline
93-mile, 12-inch NGL pipeline owned through a 50/50 JV with Copano. Connects the
Freedom pipeline to the Formosa plant
90 Mbpd
In-service
Q3 2011
$26
Justice Pipeline
130-mile, 20-inch NGL pipeline from the Jackson Plant to Mont Belvieu
340 Mpbd
Q3 2012
$300
Sub-total
$356
NGL (70% interest in Lone Star)
West Texas Gateway
570-mile NGL pipeline originating in Winkler County and terminating in Jackson
County 200 Mbpd
Q1 2013
$642
Frac I
Mont Belvieu NGL fractionator
100 Mbpd
Q1 2013
$273
Frac II
Mont Belvieu NGL fractionator
100 Mbpd
Q1 2014
$245
Sub-total
$1,160
Total announced ETP growth projects since Q4 2010 (including 70% of Lone Star)
$3,067
Jackson Plant
Natural gas processing plant located in Jackson County |
 12
FEP
•50/50 joint venture with
KMP
•185 mile, 42-inch interstate
pipeline originating in the
Fayetteville Shale,
extending through
Arkansas and into
Mississippi
•1.85 Bcf/d sold under 10-
12 year agreements
•In-service
January 2011
Tiger
•100% owned and operated
by ETP
•175 mile, 42-inch interstate
pipeline originating near
Carthage, Texas and
extending to Perryville,
Louisiana
•2.4 Bcf/d of capacity sold
under 10-15 year
agreements
•Initial 2.0 Bcf/d in-service
January 2011
•400 MMcf/d expansion in-
service August 2011
0.0
0.5
1.0
1.5
2.0
2.5
Jan-11
May-11
Sep-11
Jan-12
May-12
Sep-12
Jan-13
Pipeline Capacity
Contractual Demand
Bcf/d
0.0
0.5
1.0
1.5
2.0
2.5
Jan-11
May-11
Sep-11
Jan-12
May-12
Sep-12
Jan-13
Bcf/d
4.25 Bcf/d of
Take-or-Pay
Demand Fees
for the Next
9 –
14 Years
Tiger and FEP Have Reached Their
Contractual Ramp-Up Periods |
 13
ETP’s Business Profile Has Strengthened
45%
61%
54%
58%
51%
46%
38%
35%
27%
22%
15%
16%
15%
22%
23%
21%
12%
12%
13%
13%
19%
34%
28%
17%
19%
14%
22%
19%
13%
8%
10%
0%
25%
50%
75%
100%
FY 2005
FY 2006
FY 2007
2008
2009
2010
2011
Pro Forma
2011
Intrastate
Midstream
Interstate
Propane
NGL
2,3
1
Calculated as operating income + depreciation & amortization. Excludes eliminations.
2
Excludes expected AmeriGas distributions. Assumes Propane Contribution closed 1/1/2011.
3
NGL and interstate segments reflect annualized Q4 2011 operating income + depreciation &
amortization. Interstate segment includes 50% of Citrus’s 2011 segment operating income +
depreciation & amortization. Business
Performance
by
Operating
Segment
1 |
 Financial & Liquidity Overview |
 15
$401
$766
$1,143
$1,379
$1,477
$1,541
$1,743
FY 2005
FY 2006
FY 2007
2008
2009
2010
2011
Adjusted EBITDA in $ millions
Since Q4 2010, ETP has
announced investments
of more than $3.0 billion
for organic growth
projects and $3.3 billion
for strategic
acquisitions
Adjusted EBITDA Will Continue to Grow |
 16
Balanced Approach To Funding Growth
49%
24%
79%
29%
34%
60%
76%
63%
54%
51%
76%
21%
71%
66%
40%
24%
37%
46%
FY 2005
FY 2006
FY 2007
4 Mo. Ended
12/31/07
2008
2009
2010
2011
Cumulative
Equity + Excess Cash Flow
Debt
Total Capital
Deployed
($ mm):
$1,292
$1,204
$2,092
$970
$1,896
$1,328
$834
$3,428
$13,043
1
Excludes capital contributions to joint ventures other than Lone Star. Includes
cash paid for acquisitions and proceeds from the sale of assets. 2
Equity
includes
net
proceeds
from
issuance
of
common
units
plus
capital
contributions
from
general
partner,
capital
contributions
from
non-controlling
interest,
and
common units issued in connection with acquisitions. Excess Cash Flow
includes net cash provided by operating activities less maintenance capital expenditures
and distributions paid plus proceeds from sale of assets and discontinued
operations. 3
ETP
changed
from
a
fiscal
year
end
of
August
31
to
a
calendar
year
end
at
the
end
of
2007.
2
3
st
1 |
 17
Debt Capitalization
($ million)
12/31/2011
Jan 2012
Notes Offering
Jan 2012
Propane
Contribution and
Tender Offer
Pro Forma
12/31/2011
Revolving Credit Facility
314
$
-
$
(314)
$
-
$
Senior Notes:
5.65%
due 2012
400
-
(292)
108
6.00%
due 2013
350
-
-
350
8.50%
due 2014
350
-
(58)
292
5.95%
due 2015
750
-
-
750
6.13%
due 2017
400
-
-
400
6.70%
due 2018
600
-
-
600
9.70%
due 2019
600
-
(200)
400
9.00%
due 2019
650
-
(200)
450
4.65%
due 2021
800
-
-
800
5.20%
due 2022
-
1,000
-
1,000
6.63%
due 2036
400
-
-
400
7.50%
due 2038
550
-
-
550
6.05%
due 2041
700
-
-
700
6.50%
due 2042
-
1,000
-
1,000
Total Senior Notes
6,550
2,000
(750)
7,800
Other Long-Term Debt:
Transwestern Senior Notes
870
-
-
870
Heritage Senior Notes
71
-
(71)
-
Other
10
-
-
10
Total Other Long-Term Debt
952
-
(71)
880
Total Debt
7,816
$
2,000
$
(1,136)
$
8,680
$ |
 18
Managed Commodity Exposure
•
Intrastate Segment
–
We
have
open
transportation
capacity
between
points
across
Texas
(Waha/HSC
basis)
that
we
manage through buy/sale transactions and derivatives
–
We have 100% of net retained fuel volumes (approximately 60 MMcf/d) hedged at an
average price of $3.78/MMBtu in 2012 and $3.72/MMBtu in 2013
–
We have approximately 47 Bcf of natural gas storage at our Bammel facility that we
manage for our own account. Average hedged storage spreads are currently
$0.96/MMBtu •
Midstream Segment
–
We have approximately 16,700 Bbl/d of equity NGL volumes
•
Interstate Segment
–
Nearly all revenues are demand charges
–
Minimal direct exposure to natural gas prices
•
NGL Segment
–
Nearly all gross margin is fee-based
–
Lone Star (of which we own 70%) has approximately 3,500 Bbl/d equity NGL
volumes |
 19
•
ETP
is
one
of
the
largest
MLPs
with
an
equity
market
capitalization
of
approximately
$10.7
billion
1
and
an
enterprise
value
of
$18.4
billion
1,2
•
Owns and operates more than 18,000 miles of intrastate and interstate pipelines
and 1,400 miles of NGL pipeline
•
Connects prolific natural gas producing areas with multiple end markets
Investment Considerations
Large
Diversified
Asset Base
Strong
Balance Sheet
Stable Asset
Base & Strong
Cash Flow
Profile
Well
Managed
Growth
Profile
•
Committed to maintaining a strong balance sheet and investment grade metrics
•
Track record of maintaining a strong liquidity position
•
Proven ability to raise equity including more than $3.0 billion in net proceeds
from equity offerings over the past three years
•
Significant fee-based operating income and long-lived assets
•
High-quality customer base with strong credit profile
•
Hedge positions provide for further cash flow stability in commodity price
sensitive areas •
Low-risk, high-return projects supported by long-term customer
contracts •
Demonstrated ability to construct and place into service pipelines on-time /
on-budget •
Balanced approach to funding
1
As of March 1, 2012
2
Includes net debt as of December 31, 2011 |
 Supplemental Information |
 21
Consolidated ETE Pro Forma Assets |
 Citrus
Overview 22
Florida Gas Transmission System Map
•
Florida Gas Transmission is 100% owned by Citrus Corp.
(“Citrus”), which is indirectly owned 50% by SUG and
50% by El Paso Corp.
–
Approximately 5,400 miles of pipe and mainline
system capacity of 3.1 Bcf/d (including Phase VIII
expansion)
•
Significant supply pipeline serving Florida market
–
Delivered ~63% of the natural gas consumed in
Florida in 2010
–
Over 240 delivery points
–
Largely demand driven with 30,000+ MW of gas-fired
generation connected to FGT
–
50 interconnects with interstate and intrastate
pipelines
–
Gulfstream is currently the only competitor for gas
supply into Florida, with 1.26 Bcf/d capacity
•
2011 revenue and EBITDA were $694 million and $531
million, respectively
•
Upon closing of the acquisition of SUG by ETE, SUG’s
50% interest in Citrus will be sold to ETP for $2 billion
(see slide 8)
FGT Phase VIII Expansion
•
Phase VIII, an 820,000 MMBtu/d expansion from
Mississippi to South / Central Florida, was placed in
service on April 1, 2011 at an estimated project cost of
$2.5 billion
•
Expansion capacity of 820,000 MMBtu/day is currently
74% contracted on a firm basis for a tenure of 25 years
Overview |
 Eagle
Ford Shale Projects 23 |
 Woodford Shale Project
24
•
95 miles of 30-inch pipe and
22 miles of 24-inch loop of
existing system
•
450 MMcf/d of initial pipeline
capacity
•
Originating in Carter County,
OK and terminating in Johnson
County at the Godley Plant
•
200 MMcf/d Cryo plant at
Godley
•
Expected pipeline in-service
by Q4 2012
•
Expected Godley expansion
in-service by Q3 2013
•
Project cost ~$360MM
•
Supported by long-term
agreement with XTO/Exxon |
 25
West Texas Gateway
Project
(NGL) Pipeline
•
Approximately 570 miles of 16-inch pipe
with an initial capacity of 200,000 Bbl/d
•
Originating in Winkler County and
terminating in Jackson County, Texas
•
Lone Star has secured capacity through
ETP’s Justice NGL pipeline from
Jackson County to Mont Belvieu
•
Estimated cost of $917 million
•
Expected in-service Q1 2013
Mont Belvieu Fractionator I & II
•
•
•
•
Lone Star Projects
Two 100,000 Bbl/d NGL fractionators to
be constructed at Mont Belvieu
A substantial amount of the fractionation
capacity will be utilized for NGLs from
ETP’s Justice Pipeline
Estimated
cost:
Frac I -
$390
million
Frac II -
$350 million
Expected
in-service:
Frac I -
Q1
2013
Frac II -
Q1 2014 |
 Freedom
Pipeline •43 mile 8-inch NGL pipeline
•40,000 Bbl/d design capacity
•In-service September 2011
•Project cost $30MM
Liberty Pipeline
•
93 mile 12-inch NGL pipeline
•
90,000 Bbl/d design capacity
•
50/50 JV with Copano
•
In-service September 2011
•
Project cost $26MM (ETP share)
Justice Pipeline
•130 mile 20-inch NGL pipeline
•340,000 Bbl/d design capacity
•Expected in-service Q3 2012
•Project cost $300MM
ETP NGL Pipeline Projects
26 |
 27
Growth Expenditures
1
Net of contributions from Regency for its 30% noncontrolling interest in Lone
Star ($ millions)
2011
2012E
Growth Capital Expenditures
Intrastate / Midstream
842
$
$ 800 -
900
Interstate
181
-
NGL
1
317
950 -
1,100
Propane & Other
36
-
Total
1,376
$
$ 1,750 -
2,000
Contributions to Joint Ventures
201
-
Total
1,576
$
$ 1,750 -
2,000 |
 28
Adjusted EBITDA Reconciliation
Years Ended December 31,
($ millions)
2008
2009
2010
2011
Net income
866.0
$
791.5
$
617.2
$
697.2
$
Interest expense, net of interest capitalized
265.7
394.3
412.6
474.1
Income tax expense
6.7
12.8
15.5
18.8
Depreciation and amortization
262.2
312.8
343.0
430.9
Non-cash compensation expense
23.5
24.0
27.2
37.5
(Gains) losses on disposals of assets
1.3
1.6
5.0
3.2
Gains on non-hedged interest rate
derivatives 51.0
(39.2)
(4.6)
77.4
Unrealized (gains) losses on commodity risk management
activities (35.5)
(30.0)
78.3
11.4
Goodwill impairment loss
11.4
-
-
-
Impairment of investment in affiliate
-
-
52.6
5.4
Proportionate share of unconsolidated affiliates'
interest, depreciation and allowance for equity funds used during construction
-
22.3
22.5
30.0
Adjusted EBITDA attributable to non-controlling
interest -
-
-
(37.8)
Other, net (includes allowance for equity funds used during
construction) (73.3)
(12.7)
(28.5)
(5.4)
Adjusted EBITDA
1,378.9
$
1,477.4
$
1,540.9
$
1,742.6
$
The Partnership has disclosed in this press release EBITDA, as adjusted, and distributable cash
flow which are non-GAAP financial measures. Management believes
Adjusted EBITDA is a non-GAAP financial measure. Management believes Adjusted EBITDA
provides useful information to investors as measure of comparison with peer companies, including
companies that may have different financing and capital structures. The presentation of Adjusted EBITDA also allows investors to view our performance in a manner similar
to the methods used by management and provides additional insight to our operating results. There
are material limitations to using measures such as Adjusted EBITDA, including the difficulty associated with using it as the sole measure to compare the results of one company
to another, and the inability to analyze certain significant items that directly affect a
company’s net income or loss or cash flows. In addition, our calculation of Adjusted EBITDA may
not be consistent with similarly titled measures of other companies and should be viewed in
conjunction with measurements that are computed in accordance with GAAP, such as gross margin,
operating income, net income, and cash flow from operating activities.
Definition of Adjusted EBITDA The
Partnership defines Adjusted EBITDA as total partnership earnings before interest, taxes, depreciation, amortization, and other non-cash items, such as non-cash compensation
expense, gains and losses on disposals of assets, the allowance for equity funds used during
construction, unrealized gains and losses on commodity risk management activities, non- cash
impairment charges, and other non-operating income or expense items. Unrealized gains and losses on commodity risk management activities includes unrealized gains and
losses on commodity derivatives and inventory fair value adjustments (excluding lower of cost or
market adjustments). |
 29
Reconciliation of Capital Deployed and
Funding Sources
1
Non-cash activity comprises issuances of common units in connection with certain
acquisitions (2009, 2008, four months ended 12/31/07, 2006 and 2006) and redemption of common units in
connection with the transfer of the investment in MEP (year ended 12/31/10).
Fiscal Years Ended 8/31
Four Months
Years Ended 12/31
($ millions)
2005
2006
2007
Ended 12/31/07
2008
2009
2010
2011
Net cash used in investing activities
1,133.7
$
1,244.4
$
2,158.1
$
995.9
$
2,015.6
$
1,345.8
$
1,493.8
$
3,552.4
$
Proceeds from sale of assets and discontinued operations
196.9
6.9
23.1
21.5
19.4
21.5
27.9
9.3
Non-cash activity ¹
2.5
4.0
-
1.4
2.2
63.3
(588.7)
-
Maintenance capital expenditures
(41.0)
(51.8)
(89.2)
(49.0)
(141.0)
(102.7)
(99.3)
(134.2)
Capital deployed
1,292.1
$
1,203.5
$
2,092.0
$
969.8
$
1,896.2
$
1,327.9
$
833.8
$
3,427.5
$
Net cash provided by operating activities
169.4
$
543.9
$
1,112.7
$
245.7
$
1,258.1
$
826.9
$
1,202.3
$
1,344.4
$
Maintenance capital expenditures
(41.0)
(51.8)
(89.2)
(49.0)
(141.0)
(102.7)
(99.3)
(134.2)
Distributions paid
(207.0)
(343.8)
(622.5)
(176.0)
(879.2)
(957.3)
(1,066.0)
(1,159.5)
Proceeds from sale of assets and discontinued operations
196.9
6.9
23.1
21.5
19.4
21.5
27.9
9.3
Excess cash flow
118.3
$
155.2
$
424.1
$
42.2
$
257.3
$
(211.6)
$
64.9
$
60.0
$
Net proceeds from issuance of common units
507.7
$
132.4
$
1,200.0
$
234.9
$
373.1
$
936.3
$
1,152.2
$
1,467.0
$
Capital contributions from general partner
10.4
2.8
24.5
-
8.0
3.4
8.9
-
Capital contributions from noncontrolling interest
-
-
-
-
-
-
-
645.3
Non-cash activity ¹
2.5
4.0
-
1.4
2.2
63.3
(588.7)
-
Equity issued
520.6
$
139.2
$
1,224.5
$
236.3
$
383.3
$
1,003.0
$
572.5
$
2,112.2
$ |
 30
Ratings Summary
Moody's
S&P
Fitch
Rating
Outlook
Rating
Outlook
Rating
Outlook
ETE
Corporate Rating
Ba1
Review Down
BB-
Pos Watch
BB-
Stable
Senior Secured
Ba2
Review Down
BB-
Pos Watch
BB
Stable
ETP
Senior Unsecured
Baa3
Negative
BBB-
Negative
BBB-
Negative
RGP
Corporate Rating
Ba3
Stable
BB
Stable
NR
NR
Senior Unsecured
B1
Stable
BB-
Stable
NR
NR
SUG
Senior Unsecured
Baa3
Negative
BBB-
Neg Watch
BBB-
Neg Watch
PEPL
Senior Unsecured
Baa3
Stable
BBB-
Neg Watch
BBB-
Neg Watch |
 31
Definitions
The following is a list of certain acronyms and terms generally used in the energy
industry and throughout
this
presentation
:
/d
per day
Bbl
barrels
Btu
British thermal unit, an energy measurement
Capacity
capacity of a pipeline, processing plant or storage facility refers to the maximum
capacity under normal operating conditions and, with respect to pipeline
transportation capacity, is subject to multiple factors (including natural
gas injections and withdrawals at various delivery points along the
pipeline and the utilization of compression) which may reduce the
throughout capacity from specified capacity levels.
gpm
gallons per minute
Mcf
thousand cubic feet
MMBtu
million British thermal units
MMcf
million cubic feet
Bcf
billion cubic feet
NGL
natural gas liquid, such as propane, butane and natural gasoline
NYMEX
New York Mercantile Exchange |
 32
•
In
connection
with
the
proposed
merger,
ETE
filed
with
the
SEC
a
Registration
Statement
on
Form
S-
4 that included a proxy statement/prospectus. The Registration Statement was
declared effective on October 27, 2011. Southern Union mailed the definitive
proxy statement/prospectus to its stockholders on or about October 27, 2011
and again on February 17, 2012. Investors and security holders are
urged to carefully read the definitive proxy statement/prospectus because it contains
important information regarding ETE, Southern Union and the merger.
•
Investors and security holders may obtain a free copy of the definitive proxy
statement/prospectus and other documents filed by ETE and Southern Union
with the SEC at the SEC’s website, www.sec.gov. The definitive proxy
statement/prospectus and such other documents relating to ETE may also be
obtained free of charge by directing a request to Energy Transfer Equity, L.P.,
Attn: Investor Relations, 3738 Oak Lawn Avenue, Dallas, Texas 75219, or from
ETE’s website, www.energytransfer.com. The definitive proxy
statement/prospectus and such other documents relating to Southern Union may also
be obtained free of charge by directing a request to Southern Union Company, Attn:
Investor Relations, 5051 Westheimer Road, Houston, Texas 77056, or from the
Company’s website, www.sug.com.
Additional Information |