Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Energy Transfer Equity — Merger or Acquisition (July 2011)
11 slides from Energy Transfer Lp's merger presentation, Jul 5, 2011
Slide 1: Energy Transfer Equity, L.P. Acquisition of Southern Union Company
Energy Transfer Equity, L.P. Acquisition of Southern Union Company Investor Presentation – July 5, 2011
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation may contain statements about future events, outlook and expectations of Energy Transfer Equity, L.P. (ETE), Energy Transfer Partners, L.P. (ETP), Regency Energy Partners LP (RGNC), and Southern Union Company (SUG) (collectively, the “Companies”), all of which are f
Slide 3: Revised Transaction Overview
Revised Transaction Overview ETE and SUG have entered into a revised Merger Agreement, unanimously adopted by the Boards of Directors of both companies SUG shareholders can elect $40.00 in cash or 0.903 ETE common units per SUG common share − Transaction value well in excess of $40.00 per SUG sh
Slide 4: More value for SUG shareholders
More value for SUG shareholders ETE believes its revised proposal is superior to the offer from Williams (“WMB”) for many reasons − Higher premium with potential for continued upside to SUG shareholders − More tax efficient structure for SUG shareholders who receive ETE common units − No financing
Slide 5: Strategic Rationale for ETE Unitholders
Strategic Rationale for ETE Unitholders Attractive, immediate and long-term accretion to ETE’s distributable cash flow Strong commercial and operational fit with existing natural gas and natural gas liquids operations Attractive, complementary assets aligned with ETE’s growth strategy − Provid
Slide 6: Benefits to SUG Shareholders
Benefits to SUG Shareholders Attractive, immediate financial impact for SUG shareholders − More than a 42% premium to the unaffected closing price on June 15, 2011 − Flexibility for shareholders to elect cash or ETE common units − Up to 50% ETE common unit election provides opportunity for signifi
Slide 7: Consideration Mechanism
Consideration Mechanism Each SUG shareholder may elect to receive $40.00 cash or 0.903 ETE common units on a per share basis Total mix of consideration dependent upon election of SUG shareholders Shareholder election Outcome dependent upon aggregate election of SUG shareholders Subject to pror
Slide 8: Overview of Citrus Transaction
Overview of Citrus Transaction ETE and ETP have negotiated the pre-arranged drop-down of SUG’s 50% interest in Citrus Corp., the owner of Florida Gas Transmission Company, LLC, into ETP for $1.9 billion in cash − Florida Gas Transmission Company, LLC is a 5,500 mile interstate pipeline with a thro
Slide 9: Illustrative Transaction Timeline
Illustrative Transaction Timeline Integration plan will be put in place immediately resulting in one functional organization at closing Have already made HSR and Missouri regulatory filings ~9 months from initial announcement to closing due to regulatory approvals Already filed for regulatory ap
Slide 10: ETE Relative Performance
ETE Relative Performance ETE Distribution Growth Relative ETE – Total Return 360 340 229% 2006 - 2010 CAGR: 21.2% 320 $2.50 300 $2.14 $2.16 280 $1.91 260 240 $1.49 220 112% 200 180 $1.00 160 48% 140 120 100 80 (1) FY2006 FY2007 FY2008 FY2009 FY2010 Current 60 Annualized 01/01/09 08/14/09 04/01/10 11
Slide 11: Combined Asset Footprint
Combined Asset Footprint Energy (1) (2) Transfer SUG Combined Rank Miles of Natural Gas Pipeline 23,589 21,169 44,758 1st Natural Gas Throughput (Bcf/d) 22.1 8.6 30.7 1st Natural Gas Storage (Bcf) 74 109 184 NA Natural Gas Processing Capacity (Bcf/d) 1.4 0.5 1.9 NA Note: Figures include only proport
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