Energy transfer equity reports second quarter results
Dallas--(business wire)--energy transfer equity, l.p. (nyse:ete) (“ete” or the “partnership”) today reported financial results for the quarter ended june 30, 2014. distributable cash flow, as adjusted, for the three months ended june 30, 2014 was $218 million compared to $180 million for the three months ended june 30, 2013, an increase of $38 million. ete’s net income attributable to partners was $164 million for the three months ended june 30, 2014 compared to $127 million for the three months ended june 30, 2013, an increase of $37 million. distributable cash flow, as adjusted, for the six months ended june 30, 2014 was $417 million compared to $358 million for the six months ended june 30, 2013, an increase of $59 million. ete’s net income attributable to partners was $332 million for the six months ended june 30, 2014 compared to $217 million for the six months ended june 30, 2013, an increase of $115 million. the partnership’s key accomplishments during or subsequent to the second quarter include the following: in april, ete amended its senior secured term loan agreement to increase the aggregate principal amount to $1.4 billion and used the proceeds from this $400 million increase to repay borrowings under our revolving credit facility and for general partnership purposes. from january through may, ete completed its repurchase of ete common units under its $1 billion common unit buyback program. in may, ete issued $700 million aggregate principal amount of its 5.875% senior notes due 2024 in a private placement. in june, a wholly-owned subsidiary of ete purchased 14.4 million regency energy partners lp (“regency”) common units for approximately $400 million. in july, a wholly-owned subsidiary of ete purchased an additional 16.5 million regency common units for approximately $400 million. subsequent to these purchases, ete and etp together own approximately 24% of the limited partner interest in regency. in july, ete’s board of directors approved its seventh consecutive increase in its quarterly distribution to $0.38 per unit ($1.52 annualized) on ete common units for the quarter ended june 30, 2014. based on the increased distribution rate, ete’s distribution coverage ratio was 1.06x for the quarter. the partnership has scheduled a conference call for 8:30 a.m. central time, thursday, august 7, 2014 to discuss its second quarter 2014 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. the partnership’s principal sources of cash flow are the distributions it receives related to its direct and indirect investments in energy transfer partners, l.p. (“etp”) and regency, including 100% of etp’s and regency’s general partner interest and incentive distribution rights, etp common units, regency common units, etp class h units, and the partnership’s ownership of trunkline lng company, llc (“trunkline lng”). the partnership’s primary cash requirements are for general and administrative expenses, debt service requirements and distributions to its partners. energy transfer equity, l.p. (nyse:ete) is a master limited partnership which owns the general partner and 100% of the incentive distribution rights (idrs) of energy transfer partners, l.p. (nyse: etp), approximately 30.8 million etp common units, and approximately 50.2 million etp class h units, which track 50% of the underlying economics of the general partner interest and idrs of sunoco logistics partners l.p. (nyse: sxl). ete also owns the general partner and 100% of the idrs of regency energy partners lp (nyse: rgp) and approximately 57.2 million rgp common units. on a consolidated basis, ete’s family of companies owns and operates approximately 71,000 miles of natural gas, natural gas liquids, refined products, and crude oil pipelines. for more information, visit the energy transfer equity, l.p. web site at www.energytransfer.com. energy transfer partners, l.p. (nyse:etp) is a master limited partnership owning and operating one of the largest and most diversified portfolios of energy assets in the united states. etp currently owns and operates approximately 35,000 miles of natural gas and natural gas liquids pipelines. etp owns 100% of panhandle eastern pipe line company, lp (the successor of southern union company) and sunoco, inc., and a 70% interest in lone star ngl llc, a joint venture that owns and operates natural gas liquids storage, fractionation and transportation assets. etp also owns the general partner, 100% of the incentive distribution rights, and approximately 67.1 million common units in sunoco logistics partners l.p. (nyse: sxl), which operates a geographically diverse portfolio of crude oil and refined products pipelines, terminalling and crude oil acquisition and marketing assets. etp’s general partner is owned by ete. for more information, visit the energy transfer partners, l.p. web site at www.energytransfer.com. regency energy partners lp (nyse: rgp) is a growth-oriented, midstream energy partnership engaged in the gathering and processing, contract compression, treating and transportation of natural gas and the transportation, fractionation and storage of natural gas liquids. rgp also holds a 30% interest in lone star ngl llc, a joint venture that owns and operates natural gas liquids storage, fractionation, and transportation assets in texas, louisiana and mississippi. 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. sunoco logistics partners l.p. (nyse:sxl), headquartered in philadelphia, is a master limited partnership that owns and operates a logistics business consisting of a geographically diverse portfolio of complementary crude oil and refined product pipeline, terminalling, and acquisition and marketing assets. sxl’s general partner is owned by energy transfer partners, l.p. (nyse: etp). for more information, visit the sunoco logistics partners, l.p. web site at www.sunocologistics.com. forward-looking statements this press release 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 management’s control. an extensive list of factors that can affect future results are discussed in the partnership’s annual reports 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. the information contained in this press release is available on our web site at www.energytransfer.com. energy transfer equity, l.p. and subsidiaries condensed consolidated balance sheets (in millions) (unaudited) assets liabilities and equity energy transfer equity, l.p. and subsidiaries condensed consolidated statements of operations three months endedjune 30, energy transfer equity, l.p. distributable cash flow 1.06 x 0.98 x 1.04 x 0.98 x (1) 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. the partnership’s definition of distributable cash flow also includes distributable cash flow from trunkline lng to the partnership beginning january 1, 2014. distributable cash flow for the three and six months ended june 30, 2013 also included holdco until ete’s 60% interest in holdco was contributed to etp on april 30, 2013. distributable cash flow, as adjusted. the partnership defines distributable cash flow, as adjusted, 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, plus distributable cash flow from trunkline lng and dividends from holdco (as described in the definition of distributable cash flow above), net of the partnership’s cash expenditures for general and administrative costs and interest expense, excluding certain items, such as transaction-related expenses. due to the cash expenses incurred from time to time in connection with the partnership’s merger and acquisition activities and other transactions, distributable cash flow, as adjusted, for the three and six months ended june 30, 2014 and 2013 is a significant liquidity measure used by the partnership’s senior management to compare net cash flows generated by the partnership 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, as adjusted, is net income for the parent company on a stand-alone basis. the accompanying analysis of distributable cash flow, as adjusted, is presented for the three and six months ended june 30, 2014 and 2013 for comparative purposes. (2) (3) three months endedjune 30, 2014 six months endedjune 30, 2014 supplemental information financial statements for parent company following are condensed balance sheets and statements of operations of the parent company on a stand-alone basis. balance sheets june 30,2014 december 31,2013 statements of operations
