e8vk
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
August 10, 2009
Date of Report (Date of earliest event reported)
ENERGY TRANSFER EQUITY, L.P.
(Exact name of Registrant as specified in its charter)
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Delaware
(State or other jurisdiction
of incorporation)
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001-32740
(Commission
File Number)
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30-0108820
(IRS Employer
Identification Number) |
3738 Oak Lawn Avenue
Dallas, TX 75219
(Address of principal executive
offices)
(214) 981-0700
(Registrants telephone number,
including area code)
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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02. |
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Results of Operations and Financial Condition. |
On August 10, 2009, Energy Transfer Equity, L.P. (the Partnership) issued a press release
announcing its financial and operating results for the second quarter ended June 30, 2009. 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).
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Item 7.01 |
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Regulation FD Disclosure. |
2009 EBITDA Guidance
The Partnership owns the general partner of Energy Transfer Partners, L.P. (ETP), and
approximately 62.5 million ETP common units. On July 9, 2008, ETP issued EBITDA guidance for 2009
of $1.7 billion to $1.8 billion. Today, ETP is revising its EBITDA guidance for 2009 to a range of
$1.5 billion to $1.6 billion. This guidance is based on assumptions and estimates that we believe
are reasonable given our assessment of reasonably available information. Pipeline volume estimates
are based on historical trends, anticipated future operating performance and completion of internal
growth projects. In particular, this guidance is based on various assumptions and estimates
relating to the following significant factors that affect ETPs EBITDA, as adjusted, in any
particular period:
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the amount of natural gas transported through our transportation pipelines and gathering
systems; |
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the level of throughput in our processing and treating operations; |
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the fees we charge and the margins we realize for our gathering, treating, processing,
storage and transportation services; |
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demand for natural gas from the consumer and industrial segments of the natural gas market; |
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the price of natural gas; |
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the natural gas price differentials between various receipt and delivery points on our
pipeline systems; |
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the relationship between natural gas prices and prices for natural gas liquids; |
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the weather in our operating areas; |
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the cost to us of the propane we buy for resale and the prices we receive for our propane; |
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the level of competition from other midstream companies, interstate pipeline companies,
propane companies and other energy providers; |
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the level of our operating costs; |
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prevailing economic conditions; and |
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the level of our hedging activities. |
Our natural gas transportation and midstream revenues are derived significantly from companies
that engage in natural gas exploration and production activities. Prices for natural gas and
natural gas liquids have fallen dramatically since July 2008. Many of our customers have been
negatively impacted by these declines in natural gas prices as well as current conditions in the
capital markets, which factors have caused several of our customers to decrease drilling levels
and, in some cases to shut in or consider shutting in natural gas production from some producing
wells.
In our intrastate and interstate natural gas operations, a significant portion of our revenue
is derived from long-term fee-based arrangements pursuant to which our customers pay us capacity
reservation charges regardless of the volume of natural gas transported; however, a portion of our
revenue is derived from charges based on actual volumes transported in addition to the excess of
fuel retention charged to our customers after consumption. As a result, our operating cash flows
from our natural gas pipeline operations are not tied directly to natural gas prices and natural
gas liquids prices; however, the volumes of natural gas we transport may be adversely affected by
reduced drilling activity of our customers, as well as shut in of production from producing wells,
as a result of lower natural gas prices. As a portion of our pipeline transportation revenue is
based on volumes transported and fuel retention, lower volumes of natural gas transported and lower
natural gas prices generally result in lower revenue from our intrastate and interstate natural gas
operations. During
the first six months of 2009, natural gas spot prices have ranged from $3.09 per MMbtu to
$5.25 per MMbtu, and the closing price on the New York Mercantile Exchange on August 7, 2009 for
natural gas to be delivered in September 2009 was $3.67 per MMbtu. As a result, drilling activity
in our core operating areas has declined and natural gas producers have shut in production from
some wells, which in turn has resulted in lower natural gas volumes transported on our intrastate
and interstate pipelines than we had initially forecasted for the first six months of 2009. As we
do not expect natural gas prices to increase materially during the remainder of 2009, we have
adjusted our internal estimates of natural gas transportation volumes and revenue accordingly.
ETPs guidance does not reflect any forecasts for acquisitions that it may make after the date
of this report. For the remainder of 2009, ETP expects to spend between $250 million and $300
million on growth initiatives and between $480 million and $520 million in cash contributions to
joint ventures to construct large diameter interstate pipelines.
Our assumptions and future performance are both subject to risks and uncertainties and no
assurance can be given that actual EBITDA, as adjusted, performance will fall within the guidance
range. Please refer to the information under the caption Forward-Looking Statements below. The
EBITDA, as adjusted, guidance provided above is given as of the date hereof, based on information
known to ETP as of August 10, 2009.
Non-GAAP Financial Measures
EBITDA, as adjusted, is a non-GAAP financial measure. We encourage you to visit our website
at www.energytransfer.com (in particular the section entitled Non-GAAP Measures under the ETP
Investor Info tab), which presents a historical reconciliation of ETPs EBITDA, as adjusted.
Management believes EBITDA, as adjusted, provides useful information to investors as a measure of
comparison with peer companies, including companies that may have different financing and capital
structures. The presentation of EBITDA, as adjusted, also allows investors to view ETPs
performance in a manner similar to the methods used by management and provides additional insight
to ETPs operating results.
ETP defines EBITDA, as adjusted, as total partnership earnings before interest, taxes,
depreciation, amortization and other non-cash items, such as compensation charges for unit
issuances to employees and other expenses. Non-cash compensation expense represents charges for the
value of the grants awarded under ETPs compensation plans over the vesting terms of those plans
and are charges which do not, or will not, require cash settlement. Non-cash income or loss such as
the gain or loss arising from disposal of assets is not included when determining EBITDA, as
adjusted.
EBITDA, as adjusted, is used by management to determine ETPs operating performance and, along
with other data, as internal measures for setting annual operating budgets, assessing financial
performance of our numerous business locations, as a measure for evaluating targeted businesses for
acquisition and as a measurement component of incentive compensation.
There are material limitations to using a measure such as EBITDA, as adjusted, 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 companys
net income or loss. In addition, ETPs calculation of EBITDA, as adjusted, 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.
Forward-Looking Statements
This report 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 managements control. An extensive list of factors that can
affect future results are discussed in the Partnerships 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.
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Item 9.01. |
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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.
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Exhibit |
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Number |
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Description of the Exhibit |
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Exhibit 99.1
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Energy Transfer Equity, L.P. Press Release, dated August 10, 2009. |
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.
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Energy Transfer Equity, L.P.
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By: |
LE GP, LLC,
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its general partner |
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Date: August 11, 2009 |
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/s/ John W. McReynolds
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John W. McReynolds |
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President and Chief Financial Officer |
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Exhibit Index
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Exhibit |
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Number |
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Description of the Exhibit |
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Exhibit 99.1
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Energy Transfer Equity, L.P. Press Release, dated August 10, 2009. |
exv99w1
Exhibit 99.1
ENERGY TRANSFER EQUITY
REPORTS QUARTERLY RESULTS
FOR THE PERIOD ENDED JUNE 30TH
Dallas August 10, 2009 Energy Transfer Equity, L.P. (NYSE:ETE) today reported
Distributable Cash of $119.8 million and net income of $141.8 million for the three months ended
June 30, 2009. Distributable Cash is a non-GAAP measure as explained below.
For the three months ended June 30, 2009, ETEs Distributable Cash was $119.8 million, an increase
of $22.7 million over the three months ended June 30, 2008. For the six months ended June 30,
2009, ETEs Distributable Cash was $238.9 million, an increase of $42.5 million over the six months
ended June 30, 2008. The Partnerships principal sources of cash flow are distributions it
receives from its investments in the limited and general partner interests in Energy Transfer
Partners, L.P. (ETP). ETE currently has no operating activities apart from those conducted by
the operating subsidiaries within ETP. ETEs principal uses of cash are for distributions to its
general and limited partners, expenses and debt service.
ETEs net income attributable to its partners decreased $16.0 million for the three months ended
June 30, 2009 to $104.4 million as compared to $120.4 million for the three months ended June 30,
2008. Net income attributable to its partners increased $8.8 million for the six months ended June
30, 2009 to $255.9 million as compared to $247.1 million for the six months ended June 30, 2008.
The decrease between the three month periods is primarily attributable to a decrease in operating
income and an increase in interest expense on a consolidated basis, while the increase between the
six month periods is due primarily to net unrealized losses on non-hedged interest rate derivatives
recorded during the first quarter of 2008.
ETE also announced that it has filed its quarterly report on Form 10-Q for the three months ended
June 30, 2009 with the Securities and Exchange Commission. ETE has posted a copy of this Form 10-Q
on its website at www.energytransfer.com. The Partnership has scheduled a conference call for 9:00
a.m. Central Time, Tuesday, August 11, 2009 to discuss the second quarter results. The dial-in
number is 1-888-423-3273, participant code: Energy Transfer. The call will be available for replay
on the Partnerships website for a limited time.
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-generally accepted accounting
principle (non-GAAP) financial measure of Distributable Cash. The accompanying schedules provide
a reconciliation of this non-GAAP financial measure to its most directly comparable financial
measure calculated and presented in accordance with GAAP. The Partnerships Distributable Cash
should not be considered as an alternative to GAAP financial measures such as net income, cash flow
from operating activities or any other GAAP measure of liquidity or financial performance.
Distributable Cash. The Partnership defines Distributable Cash as cash distributions
expected to be received from ETP in connection with the Partnerships investments in limited and
general partner interests of ETP, net of the Partnerships expenditures for general and
administrative costs and debt service. Distributable Cash is a significant liquidity measure used
by the Partnerships senior management to compare net cash flows generated by the Partnerships
equity investments in ETP to the distributions the Partnership expects to pay its unitholders.
Using this measure, the Partnerships management can compute the coverage ratio of estimated cash
flows to planned cash distributions.
Distributable Cash is an important non-GAAP financial measure for our limited partners since it
indicates to investors whether or not the Partnerships investments are generating cash flows at a
level that can sustain or support an increase in quarterly cash distribution levels. Financial
measures such as Distributable Cash are quantitative standards used by the investment community
with respect to publicly-traded partnerships because the value of a partnership unit is in part
measured by its yield (which in turn is based on the amount of cash distributions a partnership can
pay to a unitholder). The GAAP measures most directly comparable to Distributable Cash are net
income and cash flow from operating activities for ETE on a stand-alone basis (Parent Company).
The accompanying analysis of Distributable Cash is presented for the three and six months ended
June 30, 2009 and 2008 for comparative purposes.
Energy Transfer Equity, L.P. (NYSE:ETE) is a publicly traded partnership, which owns the
general partner of Energy Transfer Partners, L.P. and approximately 62.5 million ETP limited
partner units.
Energy Transfer Partners, L.P. (NYSE:ETP) is a publicly traded partnership owning and operating a
diversified portfolio of energy assets. ETP has pipeline operations in Arizona, Colorado,
Louisiana, New Mexico, and Utah, and owns the largest intrastate pipeline system in Texas. ETPs
natural gas operations include gathering and transportation pipelines, treating and processing
assets, and three storage facilities located in Texas. ETP currently has more than 17,500 miles of
pipeline in service and has a 50% interest in joint ventures that have approximately 500 miles of
interstate pipeline in service. ETP is also one of the three largest retail marketers of propane
in the United States, serving more than one million customers across the country.
The information contained in this press release is available on our website at
www.energytransfer.com.
Contacts:
Investor Relations:
Brent Ratliff
Energy Transfer
214-981-0700 (office)
Media Relations:
Vicki Granado
Granado Communications Group
214-504-2260 (office)
214-498-9272 (cell)
-MORE-
ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
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June 30, |
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December 31, |
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2009 |
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2008 |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
114,361 |
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$ |
92,023 |
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Marketable securities |
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9,630 |
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5,915 |
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Accounts receivable, net of allowance for doubtful accounts |
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388,324 |
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591,257 |
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Accounts receivable from related companies |
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32,233 |
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15,142 |
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Inventories |
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187,654 |
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272,348 |
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Deposits paid to vendors |
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51,987 |
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78,237 |
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Exchanges receivable |
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27,596 |
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45,209 |
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Price risk management assets |
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4,272 |
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|
5,423 |
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Prepaid expenses and other current assets |
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55,973 |
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75,441 |
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Total current assets |
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872,030 |
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1,180,995 |
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PROPERTY, PLANT AND EQUIPMENT, net |
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9,013,750 |
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8,702,534 |
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ADVANCES TO AND INVESTMENTS IN AFFILIATES |
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374,922 |
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|
10,110 |
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GOODWILL |
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764,538 |
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|
773,283 |
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INTANGIBLES AND OTHER ASSETS, net |
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410,069 |
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402,980 |
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Total assets |
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$ |
11,435,309 |
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$ |
11,069,902 |
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ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
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June 30, |
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December 31, |
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2009 |
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2008 |
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
284,097 |
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$ |
381,933 |
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Accounts payable to related companies |
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7,094 |
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34,495 |
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Exchanges payable |
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22,793 |
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54,636 |
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Customer advances and deposits |
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73,031 |
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106,679 |
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Accrued and other current liabilities |
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273,507 |
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313,140 |
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Price risk management liabilities |
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60,742 |
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142,432 |
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Interest payable |
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156,154 |
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115,487 |
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Income taxes payable |
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|
3,880 |
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|
14,298 |
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Deferred income taxes |
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|
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|
|
589 |
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Current maturities of long-term debt |
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44,416 |
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45,232 |
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Total current liabilities |
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|
925,714 |
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|
1,208,921 |
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LONG-TERM DEBT, less current maturities |
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7,265,314 |
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7,190,357 |
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LONG-TERM PRICE RISK MANAGEMENT LIABILITIES |
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|
80,487 |
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|
121,710 |
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DEFERRED INCOME TAXES |
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|
203,588 |
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|
194,871 |
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OTHER NON-CURRENT LIABILITIES |
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14,571 |
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|
14,727 |
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COMMITMENTS AND CONTINGENCIES |
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
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8,489,674 |
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8,730,586 |
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EQUITY: |
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Partners Capital (Deficit): |
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General Partner |
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373 |
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155 |
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Limited Partners: |
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Common Unitholders (222,898,248 and 222,829,956 units authorized, issued
and outstanding at June 30, 2009 and December 31, 2008, respectively) |
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54,882 |
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(15,762 |
) |
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|
|
|
|
|
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Accumulated other comprehensive loss |
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|
(57,736 |
) |
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|
(67,825 |
) |
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|
|
|
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Total partners deficit |
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|
(2,481 |
) |
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|
(83,432 |
) |
Noncontrolling interest |
|
|
2,948,116 |
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|
2,422,748 |
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|
|
|
|
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Total equity |
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|
2,945,635 |
|
|
|
2,339,316 |
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|
|
|
|
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Total liabilities and equity |
|
$ |
11,435,309 |
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|
$ |
11,069,902 |
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|
|
|
|
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ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per unit and unit data)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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|
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2009 |
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2008 |
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2009 |
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|
2008 |
|
REVENUES: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
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Natural gas operations |
|
$ |
948,233 |
|
|
$ |
2,375,637 |
|
|
$ |
2,060,188 |
|
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$ |
4,383,484 |
|
Retail propane |
|
|
179,770 |
|
|
|
249,449 |
|
|
|
667,677 |
|
|
|
847,587 |
|
Other |
|
|
23,687 |
|
|
|
28,265 |
|
|
|
53,799 |
|
|
|
61,525 |
|
|
|
|
|
|
|
|
|
|
|
|
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Total revenues |
|
|
1,151,690 |
|
|
|
2,653,351 |
|
|
|
2,781,664 |
|
|
|
5,292,596 |
|
|
|
|
|
|
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|
|
|
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|
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COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Cost of products sold natural gas operations |
|
|
542,004 |
|
|
|
1,952,569 |
|
|
|
1,274,117 |
|
|
|
3,529,837 |
|
Cost of products sold retail propane |
|
|
78,070 |
|
|
|
163,962 |
|
|
|
298,292 |
|
|
|
556,517 |
|
Cost of products sold other |
|
|
5,919 |
|
|
|
7,541 |
|
|
|
12,723 |
|
|
|
17,436 |
|
Operating expenses |
|
|
176,681 |
|
|
|
197,143 |
|
|
|
358,454 |
|
|
|
376,113 |
|
Depreciation and amortization |
|
|
79,229 |
|
|
|
65,476 |
|
|
|
154,888 |
|
|
|
127,359 |
|
Selling, general and administrative |
|
|
54,756 |
|
|
|
44,720 |
|
|
|
112,061 |
|
|
|
95,465 |
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|
|
|
|
|
|
|
|
|
|
|
|
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Total costs and expenses |
|
|
936,659 |
|
|
|
2,431,411 |
|
|
|
2,210,535 |
|
|
|
4,702,727 |
|
|
|
|
|
|
|
|
|
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|
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|
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|
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|
|
|
|
|
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|
OPERATING INCOME |
|
|
215,031 |
|
|
|
221,940 |
|
|
|
571,129 |
|
|
|
589,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest capitalized |
|
|
(119,559 |
) |
|
|
(90,543 |
) |
|
|
(220,950 |
) |
|
|
(170,997 |
) |
Equity in earnings (losses) of affiliates |
|
|
1,673 |
|
|
|
(169 |
) |
|
|
2,170 |
|
|
|
(95 |
) |
Gains (losses) on disposal of assets |
|
|
181 |
|
|
|
515 |
|
|
|
(245 |
) |
|
|
(936 |
) |
Gains (losses) on non-hedged interest rate derivatives |
|
|
49,911 |
|
|
|
27,178 |
|
|
|
59,962 |
|
|
|
(4,458 |
) |
Allowance for equity funds used during construction |
|
|
(1,839 |
) |
|
|
15,660 |
|
|
|
18,588 |
|
|
|
25,548 |
|
Other, net |
|
|
(377 |
) |
|
|
1,567 |
|
|
|
324 |
|
|
|
9,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAX EXPENSE |
|
|
145,021 |
|
|
|
176,148 |
|
|
|
430,978 |
|
|
|
448,450 |
|
Income tax expense |
|
|
3,263 |
|
|
|
9,330 |
|
|
|
9,470 |
|
|
|
14,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
141,758 |
|
|
|
166,818 |
|
|
|
421,508 |
|
|
|
433,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTEREST |
|
|
37,383 |
|
|
|
46,424 |
|
|
|
165,597 |
|
|
|
186,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO PARTNERS |
|
|
104,375 |
|
|
|
120,394 |
|
|
|
255,911 |
|
|
|
247,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL PARTNERS INTEREST IN NET INCOME |
|
|
322 |
|
|
|
373 |
|
|
|
791 |
|
|
|
765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIMITED PARTNERS INTEREST IN NET INCOME |
|
$ |
104,053 |
|
|
$ |
120,021 |
|
|
$ |
255,120 |
|
|
$ |
246,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC NET INCOME PER LIMITED PARTNER UNIT |
|
$ |
0.47 |
|
|
$ |
0.54 |
|
|
$ |
1.14 |
|
|
$ |
1.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AVERAGE NUMBER OF UNITS OUTSTANDING |
|
|
222,898,248 |
|
|
|
222,829,956 |
|
|
|
222,898,157 |
|
|
|
222,829,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED NET INCOME PER LIMITED PARTNER UNIT |
|
$ |
0.47 |
|
|
$ |
0.54 |
|
|
$ |
1.14 |
|
|
$ |
1.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED AVERAGE NUMBER OF UNITS OUTSTANDING |
|
|
222,898,248 |
|
|
|
222,829,956 |
|
|
|
222,898,157 |
|
|
|
222,829,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENERGY TRANSFER EQUITY, L.P. PARENT COMPANY
DISTRIBUTABLE CASH
(Dollars in thousands, except per unit)
(unaudited)
The following table presents the calculation and reconciliation of Distributable Cash of the Parent
Company with respect to the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Distributable Cash: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash distributions expected from Energy Transfer Partners, L.P. associated with: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner interest (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standard distribution rights |
|
$ |
4,861 |
|
|
$ |
4,377 |
|
|
$ |
9,721 |
|
|
$ |
8,357 |
|
Incentive distribution rights |
|
|
84,164 |
|
|
|
75,692 |
|
|
|
168,310 |
|
|
|
143,494 |
|
Less: Expected General Partner contribution to ETP to maintain its 2% interest |
|
|
|
|
|
|
(13,098 |
) |
|
|
(3,354 |
) |
|
|
(13,098 |
) |
Limited partner interest (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,500,797 Common units |
|
|
55,860 |
|
|
|
55,860 |
|
|
|
111,720 |
|
|
|
110,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash expected from Energy Transfer Partners, L.P. (1) |
|
|
144,885 |
|
|
|
122,831 |
|
|
|
286,397 |
|
|
|
248,911 |
|
Deduct expenses of the Parent Company on a stand-alone basis: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company-related expenses |
|
|
(701 |
) |
|
|
(1,207 |
) |
|
|
(2,603 |
) |
|
|
(4,056 |
) |
Interest expense, net of amortization of financing costs, interest income, and realized
gains and losses on interest rate derivatives |
|
|
(24,426 |
) |
|
|
(24,553 |
) |
|
|
(44,888 |
) |
|
|
(48,456 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash |
|
$ |
119,758 |
|
|
$ |
97,071 |
|
|
$ |
238,906 |
|
|
$ |
196,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash distributions to be paid to the partners of Energy Transfer Equity, L.P. (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution per limited partner unit as of the end of the period |
|
$ |
0.5350 |
|
|
$ |
0.4800 |
|
|
$ |
1.0600 |
|
|
$ |
0.4800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to be paid to public unitholders |
|
|
50,819 |
|
|
|
45,562 |
|
|
|
100,688 |
|
|
|
87,327 |
|
Distributions to be paid to affiliates |
|
|
68,431 |
|
|
|
61,396 |
|
|
|
135,583 |
|
|
|
117,676 |
|
Distributions to be paid to general partner |
|
|
370 |
|
|
|
332 |
|
|
|
733 |
|
|
|
637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash distributions to be paid by Energy Transfer Equity, L.P. to its limited
and general partners (2) |
|
$ |
119,620 |
|
|
$ |
107,290 |
|
|
$ |
237,004 |
|
|
$ |
205,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Distributable Cash to GAAP Net Income and GAAP Net cash
provided by operating activities for the Parent Company on a stand-alone basis: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to partners |
|
$ |
104,375 |
|
|
$ |
120,394 |
|
|
$ |
255,911 |
|
|
$ |
247,099 |
|
Adjustments to derive Distributable Cash: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in income of unconsolidated affiliates |
|
|
(110,941 |
) |
|
|
(116,872 |
) |
|
|
(287,534 |
) |
|
|
(302,344 |
) |
Quarterly distribution expected to be received from Energy Transfer Partners, L.P. |
|
|
144,885 |
|
|
|
122,831 |
|
|
|
286,397 |
|
|
|
248,911 |
|
Amortization included in interest expense |
|
|
1,420 |
|
|
|
752 |
|
|
|
4,162 |
|
|
|
1,504 |
|
Other non-cash |
|
|
138 |
|
|
|
(3 |
) |
|
|
277 |
|
|
|
10 |
|
Unrealized gains and losses on non-hedged interest rate swaps |
|
|
(20,119 |
) |
|
|
(30,031 |
) |
|
|
(20,307 |
) |
|
|
1,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash |
|
|
119,758 |
|
|
|
97,071 |
|
|
|
238,906 |
|
|
|
196,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Distributable Cash to derive Net Cash Provided by Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly distribution expected from Energy Transfer Partners, L.P. |
|
|
(144,885 |
) |
|
|
(122,831 |
) |
|
|
(286,397 |
) |
|
|
(248,911 |
) |
Cash distribution received from Energy Transfer Partners, L.P. (3) |
|
|
141,485 |
|
|
|
126,079 |
|
|
|
281,205 |
|
|
|
276,463 |
|
Deferred income taxes |
|
|
(573 |
) |
|
|
|
|
|
|
(573 |
) |
|
|
|
|
Net changes in operating assets and liabilities |
|
|
251 |
|
|
|
(236 |
) |
|
|
(2,501 |
) |
|
|
8,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities for Parent Company on a stand-alone basis |
|
$ |
116,036 |
|
|
$ |
100,083 |
|
|
$ |
230,640 |
|
|
$ |
232,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
For the three months ended June 30, 2009, cash distributions expected to be received from
Energy Transfer Partners, L.P. consists of cash distributions in respect of the three months ended
June 30, 2009 payable on August 14, 2009 to holders of record on the close of business on August 7,
2009. For the three months ended June 30, 2008, cash distributions received from Energy Transfer
Partners, L.P. consists of cash distributions paid on August 14, 2008 for the three months ended
June 30, 2008. |
|
|
|
For the six months ended June 30, 2009, cash distributions received or expected to be received from
Energy Transfer Partners, L.P. consists of cash distributions paid on May 15, 2009 in respect of
the quarter ended March 31, 2009 and cash distributions in respect of the three months ended June
30, 2009 payable on August 14, 2009 to holders of record on the close of business on August 7,
2009. For the six months ended June 30, 2008, cash distributions expected to be received from
Energy Transfer Partners, L.P. consists of cash distributions paid on May 15, 2008 in respect of
the quarter ended March 31, 2008 and cash distributions in respect of the three months ended June
30, 2008 paid on August 14, 2008 to holders of record on the close of business on August 7, 2008. |
|
(2) |
|
For the three months ended June 30, 2009, cash distributions expected to be paid from Energy
Transfer Equity, L.P. consists of cash distributions in respect of the three months ended June 30,
2009 payable on August 19, 2009 to holders of record on August 7, 2009. For the three months ended
June 30, 2008, cash distributions paid or expected to be paid from Energy Transfer Equity, L.P.
consists of cash distributions paid on August 19, 2008 for the three months ended June 30, 2008. |
|
|
|
For the six months ended June 30, 2009, cash distributions paid or expected to be paid by Energy
Transfer Equity, L.P. consist of cash distributions paid on May 19, 2009 in respect of the quarter
ended March 31, 2009 and cash distributions in respect of the three months ended June 30, 2009
payable on August 19, 2009 to holders of record on the close of business on August 7, 2009. For
the six months ended June 30, 2008, cash distributions expected to be paid by Energy Transfer
Equity, L.P. consist of cash distributions paid on May 15, 2008 in respect of the quarter ended
March 31, 2008 and cash distributions in respect of the three months ended June 30, 2008 paid on
August 14, 2008 to holders of record on the close of business on August 7, 2008. |
|
(3) |
|
Cash distributions received from Energy Transfer Partners, L.P. for the six months ended June
30, 2008 reflect a one-time distribution for the four-month transition period related to Energy
Transfer Partners, L.P.s change of its fiscal year from August 31 to December 31 during 2007. |