SUMMARY

This summary highlights selected information from this document. You are urged to carefully read the entire document and the other documents referred to in this document because the information in this section does not provide all the information that might be important to you with respect to the merger agreement, the merger and the other matters being considered at the meeting. See “Where You Can Find More Information” beginning on page [—]. Each item in this summary refers to the page of this document on which that subject is discussed in more detail.

Information about the Companies

Energy Transfer Equity, L.P.

ETE is a publicly traded Delaware limited partnership, whose common units are traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “ETE.” ETE’s only cash generating assets are its direct and indirect investments in limited partner and general partner interests in Energy Transfer Partners, L.P. (“ETP”) and Regency Energy Partners LP (“Regency”), both of which are publicly traded master limited partnerships engaged in diversified energy-related services. The principal executive offices of ETE are located at 3738 Oak Lawn Avenue, Dallas, Texas 75219, and its telephone number is (214) 981-0700.

At June 30, 2011, ETE’s equity interests in ETP and Regency consisted of:

The following is a brief description of ETP’s and Regency’s operations:

This document incorporates important business and financial information about ETE from other documents that are not included in or delivered with this document. For a list of the documents that are incorporated by reference, please see the section entitled “Where You Can Find More Information” beginning on page [—].

Sigma Acquisition Corporation

Sigma Acquisition Corporation, or Merger Sub, is a Delaware corporation and a direct wholly owned subsidiary of ETE. Merger Sub has not carried on any activities to date, other than activities incidental to its formation or undertaken in connection with the transactions contemplated by the merger agreement. The principal executive offices of Merger Sub are located at 3738 Oak Lawn Avenue, Dallas, Texas 75219, and its telephone number is (214) 981-0700.

Southern Union Company

Southern Union Company, a Delaware corporation formed in 1932, owns and operates assets in the regulated and unregulated natural gas industry and is primarily engaged in the gathering, processing, transportation, storage and distribution of natural gas in the United States.

Through its wholly owned subsidiary, Panhandle Eastern Pipe Line Company, LP (“Panhandle”), and its subsidiaries, Southern Union owns and operates approximately 10,000 miles of interstate pipelines that transport up to 5.5 billion cubic feet per day (“Bcf/d”) of natural gas from the Gulf of Mexico, South Texas and the Panhandle regions of Texas and Oklahoma to major U.S. markets in the Midwest and Great Lakes regions of the United States. Panhandle also owns and operates a liquefied natural gas import terminal located on Louisiana’s Gulf Coast.

Through Citrus Corp., Southern Union owns a 50% interest in and operates Florida Gas Transmission Company, LLC (“Florida Gas”). Florida Gas is an open-access interstate pipeline system with a mainline capacity of 2.3 Bcf/d and approximately 5,000 miles of pipelines extending from South Texas through the Gulf Coast region of the United States to South Florida.

Through Southern Union Gas Services (“SUGS”), Southern Union owns approximately 5,500 miles of natural gas and NGL pipelines, five cryogenic plants with a combined capacity of 475 million cubic feet per day (“MMcf/d”) and five natural gas treating plants with combined capacities of 585 MMcf/d. SUGS is primarily engaged in connecting wells of natural gas producers to its gathering system, treating natural gas to remove impurities to meet pipeline quality specifications, processing natural gas for the removal of NGLs, and redelivering natural gas and NGLs to a variety of markets. Its operations are located in West Texas and Southeast New Mexico.

Through Southern Union’s regulated utility operations, Missouri Gas Energy and New England Gas Company, Southern Union serves natural gas end-user customers in Missouri and Massachusetts, respectively.

Shares of Southern Union’s common stock trade on the NYSE under the ticker symbol “SUG.” Southern Union’s principal executive offices are located at 5444 Westheimer Road, Houston, Texas 77056, and its telephone number is (713) 989-2000.

This document incorporates important business and financial information about Southern Union from other documents that are not included in or delivered with this document. For a list of the documents that are incorporated by reference, please see the section entitled “Where You Can Find More Information” beginning on page [—].

Proposal 1 - The Merger

ETE and Southern Union agreed to the acquisition of Southern Union by ETE under the terms of the amended and restated agreement and plan of merger (which, for ease of understanding, is referred to generally throughout this document as the merger agreement) that is described in this document. In the merger, Merger Sub, a wholly owned subsidiary of ETE, will merge with and into Southern Union, which will continue as the surviving corporation.

The merger agreement is attached as Annex A to this document, and both ETE and Southern Union encourage you to read it carefully and in its entirety because it is the legal document that governs the merger.

Merger Consideration

Pursuant to the terms of the merger agreement, Southern Union stockholders may elect to receive, for each outstanding Southern Union share and subject to the limits described below, either $40.00 in cash or 0.903 ETE common units (and cash in lieu of any fractional units). This election is subject to the following limits:

Treatment of Southern Union Options and Other Equity Awards

Stock Options and Stock Appreciation Rights. Pursuant to Southern Union’s equity incentive plans, individual award agreements and the terms of the merger agreement, all stock options and stock appreciation rights outstanding immediately prior to the effective time will vest. To the extent not exercised prior thereto, all unexercised options and stock appreciation rights will be cancelled immediately prior to the effective time. Each stock option and stock appreciation right so cancelled that has an exercise price of less than $40.00 will be converted into the right to receive an amount in cash equal to $40.00 less (i) the applicable exercise price and (ii) any applicable deductions and withholdings required by law.

Restricted Stock. Shares of restricted stock for which restrictions have not otherwise lapsed or expired and are outstanding prior to the effective time will have their associated restrictions accelerate and expire immediately prior to the effective time and the total number of Southern Union shares subject to such restricted stock grant will be converted into the right to receive $40.00 in cash or 0.903 ETE common units (at the election of the individual holders thereof), less all deductions and withholdings required by law (such deduction to come first from any cash payable as part of the consideration for such restricted stock and then by reducing the number

of ETE common units otherwise payable as part of the consideration for such restricted stock (with the ETE common unit valued at the closing price thereof on the day prior to the closing of the merger for this purpose)).

Restricted Share Units. Each unvested award of restricted share units with respect to Southern Union shares under a Southern Union stock plan that is outstanding immediately prior to the effective time will fully vest, and each Southern Union restricted share unit will be converted into the right to receive a lump sum cash payment equal to $40.00 multiplied by the total number of shares underlying such restricted share unit, less any applicable deductions and withholdings required by law.

Risk Factors

The merger is, and upon the completion of the merger, the combined company will be, subject to a number of risks, which are described in the section titled “Risk Factors” beginning on page [—]. You should carefully read and consider these risks in deciding whether to vote for the approval of the merger agreement and the merger.

Special Meeting of Southern Union Stockholders

Where and when: The special meeting of Southern Union stockholders will take place at                     , on                     , 2011 at         , local time.

What Southern Union’s stockholders are being asked to vote on: At the special meeting and any adjournment thereof, Southern Union’s stockholders will be asked to consider and vote on the following matters:

Who may vote: You may vote at the special meeting if you owned Southern Union shares at the close of business on the record date,                     , 2011. You may cast one vote for each Southern Union share that you owned on the record date.

How to vote: Please complete and submit the enclosed proxy card as soon as possible or transmit your voting instructions by using the telephone or internet procedures described on your proxy card.

Vote needed to adopt the merger agreement and the transactions contemplated thereby: The merger agreement and the transactions contemplated thereby, including the merger, must receive the approval of the holders of a majority of the outstanding Southern Union shares entitled to vote as of the record date.

Vote needed to approve, on an advisory (non-binding) basis, the compensation to be received by Southern Union’s named executive officers in connection with the merger: The advisory vote on the compensation to be received by Southern Union’s named executive officers in connection with the merger requires the affirmative vote of the holders of a majority of the outstanding Southern Union shares represented at the special meeting in person or by proxy and entitled to vote. The vote of Southern Union stockholders on the compensation to be received by Southern Union’s named executive officers in connection with the merger is advisory in nature and will not be binding on ETE or the Southern Union Board and will not impact whether or not the compensation is paid.

Vote needed to approve any adjournments of the special meeting: Any adjournments of the special meeting, if necessary, to solicit additional proxies in favor of the proposal to adopt the merger agreement requires the affirmative vote of the holders of a majority of the outstanding Southern Union shares represented at the special meeting in person or by proxy and entitled to vote as of the record date.

Support Agreement

Concurrently with the execution of the merger agreement, Mr. Lindemann, Chairman of the Board and Chief Executive Officer of Southern Union, Mr. Herschmann, Vice Chairman of the Board, President and Chief Operating Officer Secretary of Southern Union, and members of Mr. Lindemann’s family, who directly or indirectly own approximately 16,744,285 shares of Southern Union common stock (or 20,139,036 shares when including unexercised options and shares of restricted stock which are not entitled to vote until exercise or the expiration of restrictions, respectively), representing approximately 13.43% of Southern Union’s outstanding shares of common stock, have entered into an amended and restated support agreement (which, for ease of understanding, is referred to generally throughout this document as the support agreement) with ETE and Merger Sub, which replaces and supersedes the support agreement previously entered into by those parties in connection with the execution of the original merger agreement. The support agreement requires, among other things, that such stockholders will vote their shares in favor of adoption of the merger agreement unless there is a change in the recommendation of the Southern Union Board and that they will elect to receive the ETE common unit consideration rather than the right to receive $40.00 in cash in the merger (other than with respect to unexercised options which will be treated as described above).

The foregoing description of the support agreement is qualified in its entirety by reference to the full text of the support agreement, which is attached as Annex B to this document and is incorporated herein by reference.

Southern Union’s Reasons for the Merger; Recommendation of the Southern Union Board and the Southern Union Special Committee

The Southern Union Board, acting upon the unanimous recommendation of the members of a Special Committee of the Southern Union Board (the “Southern Union Special Committee”) present and voting, which committee is comprised solely of independent directors, has (i) adopted and approved the merger agreement and the transactions contemplated thereby, including the merger, and (ii) determined that the merger agreement and the transactions contemplated thereby, including the merger, are fair and in the best interests of, Southern Union and Southern Union’s stockholders. Accordingly, the Southern Union Board recommends that Southern Union’s stockholders vote “FOR” the proposal to adopt the merger agreement and the transactions contemplated thereby, including the merger.

In determining whether to approve the merger agreement and the transactions contemplated thereby, including the merger, the Southern Union Board considered the factors described in the section titled “Southern Union’s Reasons for the Merger; Recommendation of the Southern Union Board and the Southern Union Special Committee” beginning on page [—].

Opinion of Southern Union’s Financial Advisors

Evercore

On July 4, 2011, Evercore Group L.L.C. (“Evercore”) delivered its oral opinion to the Southern Union Special Committee (the “Special Committee”) of the Southern Union Board, which opinion was subsequently confirmed by delivery of a written opinion dated July 4, 2011, to the effect that, as of such date and based upon and subject to assumptions made, matters considered and limitations on the scope of review undertaken by Evercore as set forth in its opinion, the merger consideration was fair, from a financial point of view, to the holders of the shares of common stock of Southern Union entitled to receive such merger consideration.

The full text of the written opinion of Evercore, dated July 4, 2011, which sets forth, among other things, the procedures followed, assumptions made, matters considered and qualifications and limitations on the scope of review undertaken in rendering its opinion, is attached as Annex C to this document and incorporated herein by reference. You are urged to read Evercore’s opinion carefully and in its entirety. Evercore’s opinion was directed to the Southern Union Special Committee and addresses only the fairness, from a financial point of view, of the merger consideration to the holders of the shares of Southern Union common stock entitled to receive such merger consideration. The opinion does not address any other aspect of the merger and does not constitute a recommendation to the Southern Union Special Committee or to any other persons in respect of the merger, including as to how any holder of shares of Southern Union common stock should vote or act in respect of the merger. Evercore’s opinion does not address the relative merits of the merger as compared to other business or financial strategies that might be available to Southern Union, nor does it address the underlying business decision of Southern Union to engage in the merger. The summary of the Evercore opinion set forth herein is qualified in its entirety by reference to the full text of the opinion included as Annex C.

Goldman Sachs

Goldman, Sachs & Co. delivered its opinion to the Southern Union Special Committee that, as of July 4, 2011 and based upon and subject to the factors and assumptions set forth therein, the cash consideration and the ETE common unit consideration, taken in the aggregate (the “aggregate consideration”), to be paid to the holders of Southern Union common stock pursuant to the merger agreement was fair from a financial point of view to such holders.

The full text of the written opinion of Goldman Sachs, dated July 4, 2011, which sets forth assumptions made, procedures followed, matters considered and limitations on the review undertaken in connection with the

opinion, is attached as Annex D to this document and incorporated herein by reference. Goldman Sachs provided its opinion for the information and assistance of the Southern Union Special Committee in connection with its consideration of the merger. The Goldman Sachs opinion is not a recommendation as to how any holder of Southern Union’s common stock should vote or make any election with respect to the merger or any other matter. Goldman Sachs expects to receive fees for its services in connection with the merger and Southern Union has agreed to indemnify Goldman Sachs against certain liabilities arising out of its engagement.

Interests of Southern Union’s Executive Officers and Directors in the Merger

In considering the recommendations of the Southern Union Special Committee and the Southern Union Board, Southern Union’s stockholders should be aware that some of the executive officers and directors of Southern Union have interests in the merger that may differ from, or may be in addition to, the interests of Southern Union’s stockholders. These interests may present such executive officers and directors with actual or potential conflicts of interest.

Each of the Southern Union Special Committee and the Southern Union Board was aware of these different and/or additional interests and considered them, among other matters, in their respective evaluations and negotiations of the merger agreement. Please see the section entitled “Proposal 1 - The Merger—Interests of Southern Union’s Executive Officers and Directors.”

Regulatory Approvals Required for the Merger

Governmental and regulatory approvals are required to complete the transactions contemplated by the merger agreement. These approvals include approval the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”). ETE and Southern Union have agreed to use their reasonable best efforts to obtain such approvals or notices. Under the HSR Act and the rules promulgated by the Federal Trade Commission (the “FTC”), the merger may not be completed until (1) certain information and materials are furnished to the Department of Justice (the “DOJ”) and the FTC, and (2) the applicable waiting period under the HSR Act is terminated or expires. ETE and Southern Union each filed the required HSR notification and report forms on June 28, 2011, commencing a 30-day statutory waiting period. At any time before or after the completion of the merger, the DOJ, the FTC or others could take action under the antitrust laws as deemed necessary or desirable in the public interest, including without limitation seeking to enjoin the completion of the merger or to permit completion only subject to regulatory concessions or conditions.

ETE and Southern Union have also agreed to use their reasonable best efforts to file applications to obtain approval of the transactions contemplated by the merger agreement from the Federal Energy Regulatory Commission (“FERC”), the Missouri Public Service Commission (“MPSC”), the Federal Communications Commission and, if necessary, the Massachusetts Department of Public Utilities (“MPDU”).

ETE and Southern Union also intend to make all required filings under the Securities Act and the Exchange Act relating to the merger and obtain all other approvals and consents that may be necessary to give effect to the merger.

Appraisal Rights

Under Section 262 of the General Corporation Law of the State of Delaware (the “DGCL”), holders of Southern Union common stock will have the right to obtain an appraisal of the value of their shares of Southern Union common stock in connection with the merger. To perfect appraisal rights, a Southern Union stockholder

must not vote for the adoption of the merger agreement and must strictly comply with all of the procedures required under Delaware law, including submitting a written demand for appraisal to Southern Union prior to the special meeting. Failure to strictly comply with Section 262 of the DGCL by a Southern Union stockholder may result in termination or waiver of that stockholder’s appraisal rights. Because of the complexity of Delaware law relating to appraisal rights, if any Southern Union stockholder is considering exercising his, her or its appraisal rights, ETE and Southern Union encourage such Southern Union stockholder to seek the advice of his, her or its own legal counsel. A summary of the requirements under Delaware law to exercise appraisal rights is included in this document in the section titled “Proposal 1 - The Merger—Appraisal Rights” and “Selected Consolidated Historical Financial Data of Southern Union Company” beginning on pages [—] and [—], respectively, and the text of Section  262 of the DGCL as in effect with respect to this transaction is included as Annex E to this document.

NYSE Listing of ETE Common Units

ETE’s common units currently trade on the NYSE, under the ticker symbol “ETE.” ETE has agreed to use its reasonable efforts to cause the common units to be issued pursuant to the merger agreement to be approved for listing on the NYSE, subject to official notice of issuance.

Delisting and Deregistration of Southern Union Common Stock

Southern Union’s common stock currently trades on the NYSE under the ticker symbol “SUG.” If the merger is completed, Southern Union common stock will cease to be listed on the NYSE and will be deregistered under the Exchange Act.

Conditions to Completion of the Merger

The obligations of ETE, on one hand, and Southern Union, on the other hand, to complete the merger are subject to the fulfillment (or waiver) of the following conditions:

In addition, Southern Union’s obligations to complete the merger are further subject to: (i) ETE having received opinions from its counsel to the effect that, for U.S. federal income tax purposes, (a) ETE should not be treated as an investment company for purposes of Section 721(b) of the Internal Revenue Code of 1986, as amended, or the “Internal Revenue Code,” and (b) 90% of ETE’s current gross income constitutes qualifying

income within the meaning of Section 7704(d) of the Internal Revenue Code and ETE will be treated as a partnership pursuant to Section 7704(c) of the Internal Revenue Code; and (ii) Southern Union having received opinions from its counsel to the effect that for U.S. federal income tax purposes the merger should qualify under Section 721(a) of the Internal Revenue Code with respect to holders of Southern Union shares to the extent they receive ETE common units in the merger, provided this result may not apply to the extent such holders receive money or other property, other than an operating cash flow distributions (as such term is defined in Treasury regulation section 1.707-4), from ETE on any date through and including the second anniversary of the closing of the merger.

The merger agreement does not condition the closing of the merger on ETE’s ability to obtain financing for the transaction.

Neither ETE nor Southern Union can give any assurance that all of the conditions to the merger will either be satisfied or waived or that the merger will occur.

Expected Timing of the Merger

ETE and Southern Union currently expect to complete the merger in the first quarter of 2012, subject to the receipt of required Southern Union stockholder and regulatory approvals and the satisfaction or waiver of the other conditions to completion of the merger. Because many of the conditions to completion of the merger are beyond the control of ETE and Southern Union, exact timing for completion of the merger cannot be predicted with any amount of certainty.

Non-Solicitation by Southern Union

The merger agreement contains detailed provisions that restrict Southern Union, its subsidiaries and any of their respective officers, directors or employees or their representatives from, directly or indirectly, soliciting, initiating, seeking or knowingly encouraging or facilitating, the submission of any other acquisition proposal (as defined in the section of this document titled “The Merger Agreement—Non-Solicitation by Southern Union” on page [—]). The merger agreement also contains restrictions on Southern Union, its subsidiaries and their respective officers, directors or employees or their representatives from participating in any discussions or negotiations regarding any unsolicited acquisition proposal. The merger agreement does not, however, prohibit the Southern Union Board from considering and recommending to Southern Union stockholders an alternative transaction with a third party if specified conditions are met, including the payment to ETE of the breakup fee required by the merger agreement.

Termination of Merger Agreement

The merger agreement may be terminated at any time prior to the completion of the merger by mutual consent of ETE and Southern Union. The merger agreement may also be terminated by either ETE or Southern Union if:

ETE may also terminate the merger agreement if:

Southern Union may also terminate the merger agreement:

Expenses Reimbursement; Breakup Fee

Southern Union has agreed to reimburse ETE for its expenses up to $50.0 million if:

In addition to any payment to ETE of its expenses, Southern Union has agreed to pay ETE a “Breakup Fee” (as defined below) if:

ETE has agreed to pay the Breakup Fee and reimburse Southern Union for its expenses up to $50 million if Southern Union terminates the merger agreement due to ETE’s breach or failure to perform any of its representations, warranties, covenants or other agreements contained in the merger agreement (other than ETE’s failure to obtain the financing or alternative financing) and such breach or failure (i) would result in a failure of a condition precedent to the merger or (ii) cannot be cured prior to the End Date or ETE does not or ceases to diligently attempt to cure such breach or failure after receiving written notice from Southern Union.

The term “Breakup Fee” means $162.5 million.

Accounting Treatment

In accordance with accounting principles generally accepted in the United States (“GAAP”), ETE will account for the merger using the acquisition method of accounting for business combinations.

Material U.S. Federal Income Tax Consequences

The U.S. federal income tax consequences to a Southern Union stockholder of the merger and of owning and disposing of ETE common units received in the merger are complex. Southern Union stockholders should consult their own tax advisors regarding the U.S. federal income tax consequences applicable to them in light of their particular circumstances. For a more detailed discussion of the material U.S. federal income tax consequences to Southern Union stockholders of the merger and of ownership and disposition of ETE common units received in the merger, please see the discussion in the section titled “Material U.S. Federal Income Tax Consequences” beginning on page [—].

Comparison of Rights of ETE Unitholders and Southern Union Stockholders

The rights of Southern Union stockholders are currently governed by Southern Union’s amended and restated certificate of incorporation, bylaws and the DGCL. Southern Union stockholders who receive the merger consideration in ETE common units will become unitholders of ETE upon completion of the merger. Thereafter, their rights will be governed by ETE’s certificate of limited partnership, partnership agreement, as amended, and the Delaware Revised Uniform Limited Partnership Act. As a result, these Southern Union stockholders will

have different rights once they become unitholders of ETE due to the differences in the governing documents of and laws applicable to ETE and Southern Union. The key differences are described in the section titled “Comparison of Rights of ETE Unitholders and Southern Union Stockholders” beginning on page [—].

Litigation Relating to the Merger

Since the initial public announcement of the merger by ETE and Southern Union on June 16, 2011, Southern Union, the members of Southern Union’s Board, ETE and Merger Sub have been named as defendants in lawsuits brought by and on behalf of Southern Union stockholders challenging the proposed transaction. These lawsuits seek, among other things, to enjoin the consummation of the merger. ETE believes that the claims asserted against it in these lawsuits are without merit and plans to vigorously defend against them. Southern

Union and the members of Southern Union’s Board also believe that the claims asserted against them in these lawsuits are without merit and plan to vigorously defend against them. See “The Merger—Litigation Related to the Merger” on page [—].

Proposal 2-Advisory Vote on Executive Compensation

In accordance with Section 14A of the Exchange Act, Southern Union is providing stockholders with the opportunity to cast an advisory (non-binding) vote on the compensation that may be payable to Southern Union’s named executive officers in connection with the merger as reported on the Golden Parachute Compensation table on page [—]. The Southern Union Board recommends that you vote “FOR” the proposal to approve the compensation payable to Southern Union’s named executive officers in connection with the merger.

Citrus Dropdown

On July 4, 2011, ETE entered into an agreement and plan of merger (the “Citrus Merger Agreement”) with ETP. It is contemplated that shortly after the consummation of ETE’s merger with Southern Union, CrossCountry Energy, LLC, a Delaware limited liability company and wholly owned subsidiary of Southern Union (“CrossCountry”), will be merged with and into Citrus Acquisition, L.L.C., a Delaware limited liability company and wholly owned subsidiary of ETE (“Citrus Acquisition”), with CrossCountry as the surviving entity. In consideration, Southern Union will receive a new series of preferred limited partner interests of ETE (the “Series B Units”). Pursuant to the Citrus Merger Agreement, ETE will contribute to ETP an indirect 50% interest in Citrus Corp., an entity that owns 100% of the Florida Gas Transmission pipeline system (the “Citrus Dropdown”). The Citrus Dropdown will be effected through the merger of Citrus ETP Acquisition, L.L.C., a Delaware limited liability company and wholly owned subsidiary of ETP (“ETP Merger Sub”), with and into CrossCountry. In exchange for the interest in Citrus Corp., ETE will receive approximately $1.9 billion, consisting of $1.881 billion in cash and $19.0 million of ETP common units, with the value of the ETP common units based on the volume-weighted average trading price for the ten consecutive trading days ending immediately prior to the date that is three trading days prior to the closing date of the Citrus Dropdown. In addition to the foregoing, in order to increase the expected accretion to be derived from the Citrus Dropdown, ETE has agreed to relinquish its rights to approximately $220 million of the incentive distributions from ETP that ETE would otherwise be entitled to receive over 16 consecutive quarters following the closing of the transaction. Additionally, ETE has granted ETP a right of first offer with respect to any disposition of SUGS. The consummation of the Citrus Dropdown is subject to the consummation of the merger pursuant to the terms of the merger agreement and other customary conditions to closing.

Selected Consolidated Historical Financial Data of Energy Transfer Equity, L.P.

The following table shows ETE’s selected audited consolidated historical financial data as of and for each of the years ended December 31, 2010, 2009 and 2008, for each of the fiscal years ended August 31, 2007 and 2006, for the four months ended December 31, 2007 and unaudited consolidated financial data for each of the three months ended March 31, 2011 and 2010 and are derived from ETE’s consolidated financial statements. You should read the following data in connection with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the related notes thereto set forth in ETE’s Annual Report on Form 10-K for the year ended December 31, 2010 and in ETE’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, which are incorporated by reference into this document. See “Where You Can Find More Information” beginning on page [—]. See also the unaudited pro forma financial information set forth elsewhere in this document regarding the proposed merger with Southern Union. The following information is only a summary and is not necessarily indicative of the results of future operations of ETE.

ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS DATA AND BALANCE SHEET DATA

(Dollars in thousands, except per unit data)

Selected Consolidated Historical Financial Data of Southern Union Company

The following table shows Southern Union’s selected audited consolidated historical financial data as of and for each of the years ended December 31, 2010, 2009, 2008, 2007 and 2006 and unaudited consolidated financial data as of and for each of the three months ended March 31, 2011 and 2010 and are derived from Southern Union’s consolidated financial statements. You should read the following data in connection with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the related notes thereto set forth in Southern Union’s Annual Report on Form 10-K for the year ended December 31, 2010 and in Southern Union’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, which are incorporated by reference into this document. See “Where You Can Find More Information” beginning on page [—]. See also the unaudited pro forma financial information set forth elsewhere in this document regarding the proposed merger with ETE. The following information is only a summary and is not necessarily indicative of the results of future operations of Southern Union.

SOUTHERN UNION COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS DATA AND BALANCE SHEET DATA

(Dollars in thousands, except per share amounts)

Selected Unaudited Pro Forma Condensed Combined Financial Information

The following selected unaudited pro forma condensed combined statement of earnings data of ETE for the three months ended March 31, 2011 and for the year ended December 31, 2010 have been prepared to give effect to the merger as if the merger had occurred on January 1, 2010. The unaudited pro forma condensed combined balance sheet data as of March 31, 2011 of ETE has been prepared to give effect to the merger as if the merger had occurred on March 31, 2011.

The following selected unaudited pro forma condensed combined financial information is not necessarily indicative of the results that might have occurred had the merger taken place on March 31, 2011 for balance sheet purposes, and on January 1, 2010 for statement of earnings purposes, and is not intended to be a projection of future results. Future results may vary significantly from the results reflected because of various factors, including those discussed in the section titled “Risk Factors.”

ENERGY TRANSFER EQUITY, L.P.

UNAUDITED PRO FORMA COMBINED BALANCE SHEET

As of March 31, 2011

(in thousands)