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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

February 16, 2011
Date of Report (Date of earliest event reported)

ENERGY TRANSFER EQUITY, L.P.
(Exact name of Registrant as specified in its charter)
         
Delaware
(State or other jurisdiction
of incorporation)
  1-32740
(Commission
File Number)
  30-0108820
(IRS Employer
Identification Number)
3738 Oak Lawn Avenue
Dallas, TX 75219
(Address of principal executive offices)
(214) 981-0700
(Registrant’s 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:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

Item 2.02.   Results of Operations and Financial Condition.
     On February 16, 2011, Energy Transfer Equity, L.P. (the “Partnership”) issued a press release announcing its financial and operating results for the fourth quarter ended December 31, 2010. A copy of this press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.
     In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 2.02 and in the attached exhibit shall be deemed to be “furnished” and not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Item 9.01.   Financial Statements and Exhibits.
     (d) Exhibits. In accordance with General Instruction B.2 of Form 8-K, the information set forth in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act.
     
Exhibit Number   Description of the Exhibit
Exhibit 99.1  
Energy Transfer Equity, L.P. Press Release dated February 16, 2011

 


 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  Energy Transfer Equity, L.P.
 
 
  By:   LE GP, LLC,    
    its general partner   
       
 
     
Date: February 16, 2011  /s/ John W. McReynolds    
  John W. McReynolds   
  President and Chief Financial Officer   
 

 


 

Exhibit Index
     
Exhibit Number   Description of the Exhibit
Exhibit 99.1  
Energy Transfer Equity, L.P. Press Release dated February 16, 2011

 

exv99w1
Exhibit 99.1
(ENERGY TRANSFER LOGO)
ENERGY TRANSFER EQUITY
REPORTS QUARTERLY AND ANNUAL RESULTS
Dallas — February 16, 2011 Energy Transfer Equity, L.P. (NYSE:ETE) today reported Distributable Cash Flow of $118.2 million for the three months ended December 31, 2010, a decrease of $10.0 million compared to the three months ended December 31, 2009. ETE’s net income attributable to partners was $76.1 million for the three months ended December 31, 2010 as compared to $139.6 million for the three months ended December 31, 2009. The decrease in net income attributable to partners was primarily due to lower earnings from subsidiaries and higher interest expense related to both the preferred units issued by ETE in May 2010 and the senior notes issued in September 2010.
Distributable Cash Flow, excluding realized losses on interest rate swaps terminated in connection with ETE’s long-term debt refinancing, was $485.1 million for the year ended December 31, 2010 as compared to $494.4 million for the year ended December 31, 2009.
Distributable Cash Flow and Distributable Cash Flow (excluding realized losses on termination of interest rate swaps) are “non-GAAP measures” as explained below.
ETE reported net income attributable to its partners of $192.8 million for the year ended December 31, 2010 as compared to net income attributable to its partners of $442.5 million for the year ended December 31, 2009. ETE’s earnings attributable to its partners for the year ended December 31, 2010 was impacted by swap termination losses of $66.4 million related to ETE’s September 2010 refinancing of its existing credit facilities, one-time transaction costs of $12.8 million, and a non-cash charge of $52.6 million related to the Regency Transactions as discussed below.
ETE’s Distributable Cash Flow, Distributable Cash Flow (excluding realized losses on termination of interest rate swaps) and net income attributable to its partners for the year ended December 31, 2010 also reflected the impacts from ETE’s acquisition of the general partner of Regency Energy Partners LP (“Regency”) and the exchange of a portion of the investment in Midcontinent Express Pipeline (“MEP”) among ETE and its subsidiaries on May 26, 2010 (the “Regency Transactions”). One-time transaction costs of $12.8 million were recorded for the year ended December 31, 2010 in connection with the Regency Transactions. Also, in connection with the transfer of the investment in MEP, ETE recorded a non-cash charge of $52.6 million which was reflected in the consolidated statement of operations for the year ended December 31, 2010.

 


 

The Partnership’s principal sources of cash flow are distributions it receives from its investments in the limited and general partner interests in ETP and Regency, including 100% of ETP’s and Regency’s incentive distribution rights, approximately 50.2 million of ETP’s common units and approximately 26.3 million of Regency’s common units. ETE currently has no operating activities apart from those conducted by ETP and Regency and their operating subsidiaries. ETE’s principal uses of cash are for distributions to its general and limited partners and preferred unitholders, expenses, debt service and, at ETE’s election, capital contributions to ETP and Regency in respect of ETE’s general partner interests in ETP and Regency.
The Partnership has scheduled a conference call for 8:00 a.m. Central Time, Thursday, February 17, 2011 to discuss its 2010 results. The conference call will be broadcast live via an internet web cast, which can be accessed through www.energytransfer.com and will also be available for replay on the Partnership’s 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 measures of Distributable Cash Flow and Distributable Cash Flow (excluding realized losses on termination of interest rate swaps). The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with GAAP. The Partnership’s Distributable Cash Flow and Distributable Cash Flow (excluding realized losses on termination of interest rate swaps) 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 Flow. The Partnership defines Distributable Cash Flow for a period as cash distributions expected to be received from ETP and Regency in respect of such period in connection with the Partnership’s investments in limited and general partner interests of ETP and Regency, net of the Partnership’s cash expenditures for general and administrative costs and interest expense. Distributable Cash Flow is a significant liquidity measure used by the Partnership’s senior management to compare net cash flows generated by the Partnership’s equity investments in ETP and Regency to the distributions the Partnership expects to pay its unitholders. Using this measure, the Partnership’s management can compute the coverage ratio of estimated cash flows for a period to planned cash distributions for such period.
Distributable Cash Flow is also an important non-GAAP financial measure for our limited partners since it indicates to investors whether the Partnership’s 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 Flow 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 measure most directly comparable to Distributable Cash Flow is net income for ETE on a stand-alone basis (“Parent Company”). The accompanying analysis of Distributable Cash Flow is presented for the three and twelve months ended December 31, 2010 and 2009 for comparative purposes.

 


 

Distributable Cash Flow (excluding realized losses on termination of interest rate swaps). The Partnership defines Distributable Cash Flow (excluding realized losses on termination of interest rate swaps) for a period as cash distributions expected to be received from ETP and Regency in respect of such period in connection with the Partnership’s investments in limited and general partner interests of ETP and Regency, net of the Partnership’s cash expenditures for general and administrative costs and interest expense and net of realized losses on termination of interest rate swaps. Due to the cash cost associated with the termination of
interest rate swaps that occurred during the year ended December 31, 2010 in connection with the Partnership’s issuance of $1.8 billion of 7.5% senior notes due 2020 and related repayment of $1.592 billion of indebtedness, Distributable Cash Flow (excluding realized losses on termination of interest rate swaps) is a significant liquidity measure used by the Partnership’s senior management for the twelve months ended December 31, 2010 to compare net cash flows generated by the Partnership’s equity investments in ETP and Regency to the distributions the Partnership expects to pay its unitholders. Using this measure, the Partnership’s management can compute the coverage ratio of estimated cash flows for a period to planned cash distributions for such period. The GAAP measure most directly comparable to Distributable Cash Flow (excluding realized losses on termination of interest rate swaps) is net income (loss) for the Parent Company on a stand-alone basis. The accompanying analysis of Distributable Cash Flow (excluding realized losses on termination of interest rate swaps) is presented for the three and twelve months ended December 31, 2010 and 2009 for comparative purposes.
Energy Transfer Equity, L.P. (NYSE:ETE) is a publicly traded partnership, which owns the general partner of Energy Transfer Partners and approximately 50.2 million ETP limited partner units; and owns the general partner of Regency Energy Partners and approximately 26.3 million Regency 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 Arkansas, Arizona, Colorado, Louisiana, Mississippi, New Mexico, Utah and West Virginia and owns the largest intrastate pipeline system in Texas. ETP currently has natural gas operations that include more than 17,500 miles of gathering and transportation pipelines, treating and processing assets, and three storage facilities located in Texas. 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.
Regency Energy Partners LP (Nasdaq: RGNC) is a growth-oriented, midstream energy partnership engaged in the gathering and processing, contract compression, treating, marketing and transporting of natural gas and natural gas liquids. Regency’s general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE). For more information, visit the Regency Energy Partners LP Web site at www.regencyenergy.com.
Contacts
Investor Relations:

Energy Transfer
Brent Ratliff
214-981-0700 (office)
Media Relations:
Vicki Granado
Granado Communications Group
214-599-8785 (office)
214-498-9272 (cell)
—more—

 


 

ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)
                 
    December 31,  
    2010     2009  
ASSETS
               
 
               
CURRENT ASSETS:
               
Cash and cash equivalents
  $ 86,264     $ 68,315  
Marketable securities
    2,032       6,055  
Accounts receivable, net of allowance for doubtful accounts of $6,706 and $6,338 as of December 31, 2010 and 2009, respectively
    612,357       566,522  
Accounts receivable from related companies
    76,331       51,894  
Inventories
    366,384       389,954  
Exchanges receivable
    21,926       23,136  
Price risk management assets
    16,357       12,371  
Other current assets
    109,359       149,712  
 
           
Total current assets
    1,291,010       1,267,959  
 
               
PROPERTY, PLANT AND EQUIPMENT
    13,284,430       10,117,041  
ACCUMULATED DEPRECIATION
    (1,431,698 )     (1,052,566 )
 
           
 
    11,852,732       9,064,475  
 
               
ADVANCES TO AND INVESTMENTS IN AFFILIATES
    1,359,979       663,298  
LONG-TERM PRICE RISK MANAGEMENT ASSETS
    13,971        
GOODWILL
    1,600,611       775,094  
INTANGIBLES AND OTHER ASSETS, net
    1,260,427       389,683  
 
           
Total assets
  $ 17,378,730     $ 12,160,509  
 
           

 


 

ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)
                 
    December 31,  
    2010     2009  
LIABILITIES AND EQUITY
               
 
               
CURRENT LIABILITIES:
               
Accounts payable
  $ 421,556     $ 359,176  
Accounts payable to related companies
    27,351       38,515  
Exchanges payable
    16,003       19,203  
Price risk management liabilities
    13,172       65,146  
Accrued and other current liabilities
    567,688       366,781  
Current maturities of long-term debt
    35,305       40,924  
 
           
Total current liabilities
    1,081,075       889,745  
 
               
LONG-TERM DEBT, less current maturities
    9,346,067       7,750,998  
LONG-TERM PRICE RISK MANAGEMENT LIABILITIES
    79,465       73,332  
SERIES A CONVERTIBLE PREFERRED UNITS
    317,600        
OTHER NON-CURRENT LIABILITIES
    235,848       226,183  
 
               
COMMITMENTS AND CONTINGENCIES
               
 
               
PREFERRED UNITS OF SUBSIDIARY
    70,943        
 
               
EQUITY:
               
PARTNERS’ CAPITAL:
               
General Partner
    520       368  
Limited Partners:
               
Common Unitholders (222,941,172 and 222,898,248 units authorized, issued and outstanding as of December 31, 2010 and 2009, respectively)
    115,350       53,412  
Accumulated other comprehensive income (loss)
    4,798       (53,628 )
 
           
Total partners’ capital
    120,668       152  
Noncontrolling interest
    6,127,064       3,220,099  
 
           
Total equity
    6,247,732       3,220,251  
 
           
Total liabilities and equity
  $ 17,378,730     $ 12,160,509  
 
           

 


 

ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit data)
(unaudited)
                                 
    Three Months Ended December 31,     Years Ended December 31,  
    2010     2009     2010     2009  
REVENUES:
                               
Natural gas operations
  $ 1,340,439     $ 1,111,643     $ 5,167,945     $ 4,115,806  
Retail propane
    400,601       360,623       1,314,973       1,190,524  
Other
    34,775       33,516       115,214       110,965  
 
                       
Total revenues
    1,775,815       1,505,782       6,598,132       5,417,295  
 
                       
COSTS AND EXPENSES:
                               
Cost of products sold — natural gas operations
    808,597       653,661       3,328,754       2,519,575  
Cost of products sold — retail propane
    233,130       196,330       752,926       574,854  
Cost of products sold — other
    9,186       8,785       29,657       27,627  
Operating expenses
    225,244       163,556       784,546       680,893  
Depreciation and amortization
    126,518       85,398       431,199       325,024  
Selling, general and administrative
    56,648       32,284       234,321       178,924  
 
                       
Total costs and expenses
    1,459,323       1,140,014       5,561,403       4,306,897  
 
                       
OPERATING INCOME
    316,492       365,768       1,036,729       1,110,398  
OTHER INCOME (EXPENSE)
                               
Interest expense, net of interest capitalized
    (164,309 )     (127,370 )     (624,887 )     (468,420 )
Equity in earnings of affiliates
    24,497       8,846       65,220       20,597  
Losses on disposal of assets
    (4,847 )     (231 )     (5,255 )     (1,564 )
Gains (losses) on non-hedged interest rate derivatives
    16,501       9,246       (52,357 )     33,619  
Allowance for equity funds used during construction
    10,903       (8,061 )     28,942       10,557  
Impairment of investment in affiliate
                (52,620 )      
Other, net
    (37,399 )     (2,646 )     (44,210 )     1,913  
 
                       
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE
    161,838       245,552       351,562       707,100  
Income tax expense
    2,381       3,456       13,738       9,229  
 
                       
INCOME FROM CONTINUING OPERATIONS
    159,457       242,096       337,824       697,871  
Loss from discontinued operations
    (1,654 )           (1,244 )      
 
                       
NET INCOME
    157,803       242,096       336,580       697,871  
Less: Net income attributable to noncontrolling interest
    81,753       102,505       143,822       255,398  
 
                       
NET INCOME ATTRIBUTABLE TO PARTNERS
    76,050       139,591       192,758       442,473  
GENERAL PARTNER’S INTEREST IN NET INCOME
    236       432       597       1,370  
 
                       
LIMITED PARTNERS’ INTEREST IN NET INCOME
  $ 75,814     $ 139,159     $ 192,161     $ 441,103  
 
                       
BASIC NET INCOME PER LIMITED PARTNER UNIT
  $ 0.34     $ 0.62     $ 0.86     $ 1.98  
 
                       
BASIC AVERAGE NUMBER OF UNITS OUTSTANDING
    222,941,172       222,898,248       222,941,156       222,898,203  
 
                       
DILUTED NET INCOME PER LIMITED PARTNER UNIT
  $ 0.34     $ 0.62     $ 0.86     $ 1.98  
 
                       
DILUTED AVERAGE NUMBER OF UNITS OUTSTANDING
    222,941,172       222,898,248       222,941,156       222,898,203  
 
                       

 


 

ENERGY TRANSFER EQUITY, L.P.
DISTRIBUTABLE CASH FLOW
(Dollars in thousands, except per unit data)
(unaudited)
The following table presents the calculation and reconciliation of Distributable Cash Flow of Energy Transfer Equity, L.P.
                                 
    Three Months Ended December 31,     Years Ended December 31,  
    2010     2009     2010     2009  
Distributable Cash Flow:
                               
Cash distributions from Energy Transfer Partners, L.P. (ETP) associated with: (1)
                               
General partner interest:
                               
Standard distribution rights
  $ 4,889     $ 4,877     $ 19,524     $ 19,505  
Incentive distribution rights
    96,136       93,956       375,979       350,486  
Limited partner interest
    44,890       55,860       190,531       223,440  
 
                       
Total cash distributions from ETP
    145,915       154,693       586,034       593,431  
Cash distributions from Regency Energy Partners LP (Regency) associated
with: (2)
                               
General partner interest:
                               
Standard distribution rights
    1,268             3,640        
Incentive distribution rights
    1,051             3,016        
Limited partner interest
    11,689             35,066        
 
                       
Total cash distributions from Regency
    14,008             41,722        
 
                       
Total cash distributions from ETP and Regency
    159,923       154,693       627,756       593,431  
Pro rata cash settlement related to Regency Transactions: (3)
                               
Received from ETP related to 12,273,830 ETP Common Units redeemed
                10,451        
Paid to Regency related to 26,266,791 Regency Common Units issued
                (7,436 )      
Paid to seller for general partner interest in Regency
                (969 )      
 
                       
Net pro rata cash settlement for period from April 1, 2010 through May 26, 2010
                2,046        
Total cash distributions from ETP and Regency, including net pro rata settlement
    159,923       154,693       629,802       593,431  
Deduct expenses of the Parent Company on a stand-alone basis:
                               
Selling, general and administrative expenses, excluding non-cash compensation
expense (4)
    (1,589 )     (1,473 )     (21,942 )     (3,678 )
Interest expense, net of amortization of financing costs, interest income, and realized gains and losses on interest rate swaps (5)(6)
    (40,092 )     (24,995 )     (291,279 )     (95,337 )
 
                       
Distributable Cash Flow
    118,242       128,225       316,581       494,416  
Realized losses on termination of interest rate swaps (6)
                168,550        
 
                       
Distributable Cash Flow (excluding realized losses on termination of interest rate swaps)
  $ 118,242     $ 128,225     $ 485,131     $ 494,416  
 
                       
Cash distributions to be paid to the partners of ETE: (7)
                               
Distributions to be paid to limited partners
  $ 120,389     $ 120,388     $ 481,554     $ 475,909  
Distributions to be paid to general partner
    374       374       1,495       1,477  
 
                       
Total cash distributions to be paid to the partners of ETE
  $ 120,763     $ 120,762     $ 483,049     $ 477,386  
 
                       
Reconciliation of Non-GAAP “Distributable Cash Flow” and “Distributable Cash Flow (excluding realized losses on termination of interest rate swaps)” to GAAP “Net income” for the Parent Company on a stand-alone basis:
                               
Net income for the Parent Company on a stand-alone basis
  $ 76,051     $ 139,591     $ 192,758     $ 442,473  
Adjustments to derive Distributable Cash Flow:
                               
Equity in income of unconsolidated affiliates
    (131,772 )     (156,188 )     (455,901 )     (526,383 )
Cash distributions from ETP and Regency
    159,923       154,693       627,756       593,431  
Net pro rata cash settlement for period from April 1, 2010 through May 26, 2010
                2,046        
Amortization included in interest expense
    1,163       1,073       5,905       6,309  
Fair value adjustment of ETE Preferred Units
    12,650             12,650        
Other non-cash
    227       136       7,524       551  
Unrealized gains on non-hedged interest rate swaps
          (11,080 )     (76,157 )     (21,965 )
 
                       
Distributable Cash Flow
    118,242       128,225       316,581       494,416  
Realized losses on termination of interest rate swaps (6)
                168,550        
 
                       
Distributable Cash Flow (excluding realized losses on termination of interest rate swaps)
  $ 118,242     $ 128,225     $ 485,131     $ 494,416  
 
                       
 
(1)   For the three months ended December 31, 2010, cash distributions received from ETP consist of cash distributions paid on February 14, 2011 in respect of the quarter ended December 31, 2010. For the three months ended December 31, 2009, cash distributions received from ETP consist of cash distributions paid on February 15, 2010 in respect of the quarter ended December 31, 2009.

 


 

    For the year ended December 31, 2010, cash distributions received from ETP consist of cash distributions paid on May 17, 2010 in respect of the quarter ended March 31, 2010, cash distributions paid on August 16, 2010 in respect of the quarter ended June 30, 2010, cash distributions paid on November 15, 2010 in respect of the quarter ended September 30, 2010 and cash distributions paid on February 14, 2011 in respect of the quarter ended December 31, 2010. For the year ended December 31, 2009, cash distributions received from ETP consist of cash distributions paid on May 15, 2009 in respect of the quarter ended March 31, 2009, cash distributions paid on August 14, 2009 in respect of the quarter ended June 30, 2009, cash distributions paid on November 16, 2009 in respect of the quarter ended September 30, 2009 and cash distributions paid on February 15, 2010 in respect of the quarter ended December 31, 2009.
 
(2)   On May 26, 2010, ETE contributed a 49.9% interest in MEP to Regency in exchange for 26,266,791 Regency common units. Total cash distributions expected from Regency for the year ended December 31, 2010 reflect three full-quarter distributions from the Regency common units and general partner interests held by ETE as of the end of the period.
 
    For the three months ended December 31, 2010, cash distributions received from Regency consist of cash distributions paid on February 14, 2011 in respect of the quarter ended December 31, 2010.
 
    For the year ended December 31, 2010, cash distributions received from Regency consist of cash distributions paid on August 13, 2010 in respect of the quarter ended June 30, 2010, cash distributions paid on November 5, 2010 in respect of the quarter ended September 30, 2010 and cash distributions paid on February 14, 2011 in respect of the quarter ended December 31, 2010.
 
(3)   Upon closing of the transactions to transfer a 49.9% interest in MEP from ETP to Regency, the purchase price of each transaction included an adjustment relating to the pro ration of the distributions for the period from April 1, 2010 to May 26, 2010. In addition, during the year ended December 31, 2010, a pro rata portion of the general partner distributions received from Regency was remitted to GE Energy Financial Services, Inc. for the period prior to May 26, 2010.
 
(4)   One-time transaction costs of $12.8 million were recorded for the year ended December 31, 2010 in connection with the Regency Transactions. These costs were recorded in the quarter ended June 30, 2010.
 
(5)   Interest expense includes distributions on ETE’s convertible preferred units of $6.0 million and $14.4 million, respectively, for the three and twelve months ended December 31, 2010.
 
(6)   In connection with ETE’s offering of senior notes in September 2010, ETE terminated interest rate swaps with an aggregate notional amount of $1.5 billion and recognized in interest expense $66.4 million of realized losses on terminated interest rate swaps that had been accounted for as cash flow hedges. In addition to the $66.4 million of realized losses on hedged interest rate swaps, ETE also paid $102.2 million to terminate non-hedged interest rate swaps. Realized losses on non-hedged interest rate swaps had previously been recognized in net income; therefore, the termination of those swaps did not impact earnings. The total cash paid to terminate interest rate swaps was $168.6 million, including realized losses on hedged and non-hedged swaps.
 
(7)   For the three months ended December 31, 2010, cash distributions expected to be paid by ETE consist of cash distributions in respect of the quarter ended December 31, 2010 payable on February 18, 2011 to holders of record on February 7, 2011. For the three months ended December 31, 2009, cash distributions paid by ETE consist of cash distributions paid on February 19, 2010 in respect of the quarter ended December 31, 2009.
 
    For the year ended December 31, 2010, cash distributions paid or expected to be paid by ETE consist of cash distributions paid on May 19, 2010 in respect of the quarter ended March 31, 2010, cash distributions paid on August 19, 2010 in respect of the quarter ended June 30, 2010, cash distributions paid on November 19, 2010 in respect of the quarter ended September 30, 2010 and cash distributions in respect of the quarter ended December 31, 2010 payable on February 18, 2011 to holders of record on February 7, 2011. For the year ended December 31, 2009, cash distributions paid by ETE consist of cash distributions paid on May 19, 2009 in respect of the quarter ended March 31, 2009, cash distributions paid on August 19, 2009 in respect of the quarter ended June 30, 2009, cash distributions paid on November 19, 2009 in respect of the quarter ended September 30, 2009 and cash distributions paid on February 19, 2010 in respect of the quarter ended December 31, 2009.

 


 

SUPPLEMENTAL INFORMATION (unaudited)
(in thousands)
The following summarizes the key components of the stand-alone results of operations of the Parent Company for the periods indicated:
                                                 
    Three Months Ended             Years Ended        
    December 31,             December 31,        
    2010     2009     Change     2010     2009     Change  
Equity in earnings of affiliates
  $ 131,773     $ 156,188     $ (24,415 )   $ 455,901     $ 526,383     $ (70,482 )
Selling, general and administrative
    (1,494 )     (1,362 )     (132 )     (21,829 )     (4,970 )     (16,859 )
Interest expense
    (41,258 )     (17,321 )     (23,937 )     (167,658 )     (74,049 )     (93,609 )
Gains (losses) on non-hedged interest rate derivatives
          2,334       (2,334 )     (53,388 )     (5,620 )     (47,768 )
Other, net
    (12,772 )     (250 )     (12,522 )     (19,721 )     79       (19,800 )