Energy Transfer LP · NYSE:ET
Energy Transfer LP — Investor Day (November 2009)
93 slides from Energy Transfer LP's investor day presentation, Nov 18, 2009
Slide 1: Energy Transfer 2009 Analyst Presentation
Energy Transfer 2009 Analyst Presentation Energy Transfer 2009 Analyst Presentation November 18, 2009 November 18, 2009
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation may contain statements about future events, outlook and expectations of Energy Transfer Partners, L.P. (ETP) and Energy Transfer Equity, L.P. (ETE) (collectively, the “Partnerships”), all of which are forward-looking statements. Any statement in this presentation t
Slide 3: Management Biographies
Management Biographies Kelcy L. Warren Chief Executive Officer Chairman of the Board of Directors Kelcy Warren is Chief Executive Officer and Chairman of the Board of Directors of Energy Transfer Partners, L. P. (ETP). Mr. Warren also serves as Chairman of the Board of Directors of the general partn
Slide 4: Management Biographies
Management Biographies Martin Salinas Jr. Chief Financial Officer Martin Salinas has served as Chief Financial Officer of Energy Transfer Partners, L.P. since June 2008. Mr. Salinas joined the Partnership in 2004 to serve as Controller. Prior to joining ETP, Mr. Salinas spent 10 years at KPMG, ultim
Slide 5: Management Biographies
Management Biographies Shelley Corman Senior Vice President of Commercial and Regulatory Ms. Corman is Senior Vice President of Commercial and Regulatory for Transwestern where she is responsible for TW’s marketing, business development, and regulatory matters. She has been in the energy industry fo
Slide 6: Management Biographies
Management Biographies Bill Powers President, Heritage Propane Bill Powers has served as President of Heritage Propane since May 2008. Prior to this position, Mr. Powers served as Chief Operating Officer, Eastern U.S. since June 2006. He joined Energy Transfer in March 2004 as Vice President of Nort
Slide 7: Agenda
Agenda y Opening Remarks – Kelcy Warren, CEO y Intrastate Operations – Mike Howard, President of Midstream Operations y Interstate Operations – West Shelley Corman, Senior Vice President of Commercial & Regulatory y Interstate Operations – East Lee Hanse, Senior Vice President of Interstate Pipeline
Slide 8: Opening Remarks
Opening Remarks Kelcy Warren Chief Executive Officer 8
Slide 9: Corporate Structure
Corporate Structure Management Energy Transfer Equity, L.P. Ownership ~ 2% General Partner Interest 100% ETP IDRs ~ 32% 36% ETP Common Units (62.5 Million Units) Energy Transfer Partners, L.P. Public Unitholders ~ 63% Intrastate & Interstate Retail Midstream Propane 9 9
Slide 10: Business Overview
Business Overview y Four business segments: Intrastate Transportation & Storage, Interstate Transportation, Midstream and Retail Propane Uinta Basin Piceance Basin y Approximately 17,500 miles of natural gas gathering and San Juan Basin Anadarko Basin transportation pipelines y 3 natural gas storage
Slide 11: Investment Considerations
Investment Considerations y Strategically positioned and well diversified asset base serving many of the major North American natural gas producing basins • North Texas (Barnett Shale) • Rockies (Piceance / Uinta / San Juan) • East Texas (Bossier) • Arkansas (Fayetteville Shale) • West Texas (Permia
Slide 12: Investment Considerations, continued
Investment Considerations, continued y Stable asset base and cash flow profile y Significant fee-based operating income y High-quality customer base with strong credit profile y Strong financial performance y 2008 EBITDA of $1.4 billion, an increase of 23% over LTM 12/2007 y Strong liquidity positio
Slide 13: Investment Considerations, continued
Investment Considerations, continued y Well-managed organic growth projects y Low risk, high return projects supported by long-term contracts y Demonstrated ability to construct and place into service pipelines on-time and on-budget y $1.9 billion of growth capital expenditures in 2008 y $1.3 - $1.4
Slide 14: Intrastate Operations
Intrastate Operations Mike Howard President, Midstream Operations 14
Slide 15: Intrastate Asset/Basin Overview
Intrastate Asset/Basin Overview 15
Slide 16: Transportation and Storage
Transportation and Storage y Largest intrastate pipeline system in the United States with nearly 8,000 miles of transportation pipelines and 3 natural gas storage facilities. y Objective of the pipeline system is to move natural gas from major producing basins such as: y Barnett Shale y Bossier Sand
Slide 17: Transportation and Storage - cont'd
Transportation and Storage - cont’d y Bi-directional flow capabilities across the state y Integrated with our gathering and processing assets providing full midstream services to our customers in addition to commercial and operational flexibility: y Provides blending opportunities for shippers y By-
Slide 18: Major Intrastate Projects
Major Intrastate Projects • Since the beginning of 2008, we have completed more than 600 miles of large-diameter pipeline projects with an aggregate capacity of more than 6.45 Bcf/d. Completion Project Cost Project Capacity Miles Date ($millions) 42” Southeast Bossier 1.25 Bcf/d 157 2Q 2008 $470 36”
Slide 19: Texas Pipeline Growth Projects
Texas Pipeline Growth Projects 19
Slide 20: ETP - Average Intrastate Volumes
ETP - Average Intrastate Volumes 14,000,000 12,000,000 10,000,000 8,000,000 MMbtu/d 6,000,000 4,000,000 2,000,000 0 2004 2005 2006 2007 2008 2009 20
Slide 21: 2008-2009 Waha to Katy Spread
1/ 1/ $0.0000 $0.5000 $1.0000 $1.5000 $2.0000 $2.5000 20 ($0.5000) 2/ 08 1/ 2 3/ 008 1/ 20 4/ 08 1/ 2 5/ 008 1/ 20 6/ 08 1/ 20 7/ 08 1/ 20 8/ 08 1/ 20 9/ 08 1/ 10 200 /1 8 /2 11 00 /1 8 / 12 200 /1 8 /2 0 1/ 08 1/ 20 2/ 09 1/ 2 3/ 009 1/ 20 4/ 09 1/ 2 5/ 009 1/ 20 6/ 09 1/ 20 7/ 09 1/ 20 8/ 09 1/ 20
Slide 22: 2008-2009 HSC Natural Gas Prices
2008-2009 HSC Natural Gas Prices $14.0000 $12.0000 $10.0000 $8.0000 $/MMBtu $6.0000 $4.0000 $2.0000 $0.0000 1/1/2008 3/1/2008 5/1/2008 7/1/2008 9/1/2008 1/1/2009 3/1/2009 5/1/2009 7/1/2009 9/1/2009 11/1/2008 22
Slide 23: Midstream
Midstream y Approximately 7,000 miles of natural gas gathering pipelines, 3 natural gas processing plants, 11 natural gas treating facilities and 10 natural gas conditioning facilities. y Operations are concentrated in the Austin Chalk, the Barnett Shale, the Bossier Sands, the Permian Basin, and th
Slide 24: NGL Composite vs Nymex Oil Prices
NGL Composite vs Nymex Oil Prices $200.0000 $180.0000 $160.0000 $140.0000 $120.0000 cents/gal $100.0000 $/Bbl $80.0000 $60.0000 $40.0000 $20.0000 $- 8 9 Se 8 Se 9 8 9 M 8 M 9 8 9 M 8 M 9 '0 '0 l '0 l '0 '0 '0 '0 '0 '0 '0 '0 '0 ay p ay p ar ar n n ov ov Ju Ju Ja Ja N N 24
Slide 25: Business Development
Business Development y Haynesville Shale y Eagleford Shale y Marcellus Shale y Barnett Shale y Bossier Sands y Piceance and Uinta 25
Slide 26: Haynesville Shale
Haynesville Shale ee | Louisiana Area CREEDENCE, SYSTEM SBE } ETC Bisteneau & Creedence » Systems, Haynesville - North | jo ommll (/ Ce yt v i Legend Haynesville Area | TETCO Interconnect = f**"* f——— ETC - Bistineau System [| [po ETC - Creedence System) [-——— ETC Assets [=== ETC - Tiger ]
Slide 27: Eagleford Shale
Eagleford Shale ETC ASSETS - EAGLE FORD TREND f San Antinio Legend ® Recent Eagle Ford Permits —— ETC Pipelines ; l, i ETC THOMPSONVILLE EXXONMOBIL|), TREATER F KING RANCH —— EXXONMOBIL PLANT 0 10 20 30 40 50 60 70 80 90 100 rere oe oe ee Miles 4 Oo\EagleFord_Slide_10-09.mxd _RCrockett 10-09
Slide 28: Marcellus Shale
Marcellus Shale ETC Northeast Division Wigconsin Project Areas Michigan Massachusetts Legend Potential Shale Play Extent Formation {) chatanooga Ohio Huron etal Shale [) marcettus Shale Ongoing Commercial Negotiations Virginia North Carolina ¥ Tennessee
Slide 29: Piceance and Uinta Basins
Piceance and Uinta Basins Wo TE THE MAF He Em UARANTEETHE ACCURACY OF TH SESUME AY RESPONSIBILTY UTAH ROM THE Bost BCT EMAPOR IMFORIUATIN 0 SILTY FORANY RELIG ETC Canyon System COLORADO Mm ENERGY TRANSFER DS)
Slide 30: Interstate Operations - West
Interstate Operations - West Shelley Corman Senior Vice President of Commercial & Regulatory 30
Slide 31: About Transwestern
About Transwestern • Pipeline capacity has grown from 350 million cubic feet per day (MMcf/d) in 1960 to over 2,000 MMcf/d (West 1,225 MMcf/d, East approximately 900 MMcf/d). • Geographically positioned to access markets in the Mid-Continent and Texas, as well as markets in California, Arizona, New
Slide 32: Transwestern - Predictable Revenue Stream
Transwestern - Predictable Revenue Stream y In 2009, a projected 88% of total revenues will be derived from reservation fees pursuant to firm contracts, which fees are paid whether or not the reserved capacity is utilized. y Other revenues include usage fees (throughput dependent), interruptible ser
Slide 33: Transwestern - Shipper Profile
Transwestern - Shipper Profile y Top five customers, ConocoPhillips, Salt River Project (“SRP”), BP Energy, Arizona Public Service, and Southern California Gas represent approximately 54% of 2009 projected transportation revenues (excl. operational gas sales). y As of 11/1/2009, 80% of 2009 projecte
Slide 34: Transwestern - High West Utilization
Transwestern - High West Utilization 1,400,000 1,200,000 1,000,000 (Dth/day) 800,000 600,000 400,000 200,000 0 O N D Fe M Ju Au Ja Ap M Ju Se ov ec ct ar ay l-0 n- n- b- g- r-0 p- -0 -0 -0 -0 -0 09 09 09 9 09 09 8 9 9 8 8 9 California Phoenix 34
Slide 35: Phoenix Lateral
Phoenix Lateral re ~ tli ~-~_- UNS Chino, Prescott Valley South, FAV uiscouc pon UNS Prescott Valley North-Airport soa Status Drake \¢ Aw * Dower @ Doorn imme EVI ( 60% TWH40% EPNG) TIE Phoenix Lateral N i SW Gas Grand Avenue IME ETc (Transwestem interstate Pipetine) Arizona gqax ‘Sun Valley South A
Slide 36: Phoenix Expansion Project
Phoenix Expansion Project y Phoenix project rationale was to attach TWP’s system to additional high- growth markets and to diversify customer base. y Project segments: y San Juan Loop - 25 miles of 36” pipeline looping on the San Juan lateral, added 375 MMcf/d Blanco to Thoreau capacity, in-service
Slide 37: Arizona Gas-Fired Generation Opportunities
Arizona Gas-Fired Generation Opportunities Summer Peak Gas Capacity Demand (MW) (Bcf/d) Total Gas-Fired Generation in AZ Utility 6692 Independent Power Producer 6153 Total 12845 1.8 Transwestern Connected Phoenix Lateral 5222 Mainline West 1181 Total 6403 1.3 Future Transwestern Interconnections Tra
Slide 38: San Juan Natural Gas Reserves
San Juan Natural Gas Reserves Year-End Reserves (Tcf) Reserve Life (years) 22.0 15.4 16 14.9 14.8 14.6 14.5 14.5 13.8 13.9 21.1 14 13.2 20.9 20.7 20.0 12 20.3 20.3 20.3 11.9 20.0 19.8 12 19.5 10 18.0 17.4 8 16.7 16.0 6 4 14.0 2 12.0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Li
Slide 39: Transwestern - Future Gas Flow Patterns
Transwestern - Future Gas Flow Patterns • Rockies export capacity allows gas Decreased Canadian supplies to California to have options to flow West, East or to Southwest markets. • San Juan supplies stay in the Southwest. Some Rockies San Juan • Permian becomes supplies gas moves increasingly stay b
Slide 40: Transwestern – Competition
Transwestern – Competition y Transwestern’s primary competitors are El Paso Natural Gas (“EPNG”) and Southern Trails Pipeline, pipelines that, like Transwestern, carry southwest supplies to the California market and, in the case of EPNG, to the Phoenix market. y Kern and GTN also serve the Californi
Slide 41: Interstate Operations - East
Interstate Operations - East Lee Hanse Senior Vice President of Interstate Pipeline Division 41
Slide 42: Agenda
Agenda ETP’s Eastern Interstates Midcontinent Express Pipeline Fayetteville Express Pipeline Tiger Pipeline Eastern Interstate Growth Opportunities 42
Slide 43: ETP's Interstate Projects
ETP’s Interstate Projects 43
Slide 44: Midcontinent Express Pipeline (MEP)
Midcontinent Express Pipeline (MEP) • 50/50 Joint Venture with Kinder Morgan ¾ KM Construction & Regulatory ¾ KM Operated • ~500 Miles • Initial Capacity and Expansion – fully subscribed 44
Slide 45: MEP - Project Update
MEP - Project Update y In-Service ¾ Zone 1 = April, 2009 ¾ Zone 2 = August, 2009 ¾ PHMSA .8 design rating = October, 2009 • Phase 1: ¾ Zone 1 capacity – 1.432 Bcf/d ¾ Zone 2 capacity – 1 Bcf/d • Phase 2 Expansion: Anticipated completion June, 2010 ¾ Additional 100,000/d Zone 1 ¾ Additional 200,000/d
Slide 46: Fayetteville Express Pipeline (FEP)
Fayetteville Express Pipeline (FEP) • 50/50 Joint Venture with KMP ¾ETP to operate ¾ETP to manage construction • 185 mile 42” interstate pipeline originating in the Fayetteville Shale and extending through Arkansas and into Mississippi • Initial capacity - 2.0 Bcf per day • One compressor location -
Slide 47: FEP - Project Update
FEP - Project Update y FERC application filed June 15, 2009 y FERC confirmed EA October, 2009 y Issuance of certificate from FERC expected in December, 2009 y ROW acquisition continues y Construction contracts (see next slide) • Interim Service anticipated – October 2010 • Full in-service anticipate
Slide 48: FEP – Construction Status
FEP – Construction Status y Right-of-Way (ROW): Approximately 4% of project costs ¾ 92% of route follows existing pipeline y Materials: Approximately 33% of project costs ¾ Pipe, compressors and the vast majority of other materials have been secured y Construction: Approximately 44% of total costs ¾
Slide 49: Tiger Pipeline – Haynesville Shale
Tiger Pipeline – Haynesville Shale • ~180 mile 42” interstate pipeline originating near Carthage, Texas and extending to Perryville, Louisiana • Initial capacity - 2.0 Bcf per day • Four compressor locations ~ 119,000 hp • Pipeline interconnects: HPL, TETCO, Tennessee, Texas Gas, Trunkline, ANR, CGT
Slide 50: Tiger - Project Description
Tiger - Project Description y 100% owned and operated by ETP • Initial design (2Bcf) is 100% subscribed - “producer driven” pipeline • Haynesville takeaway capacity constrained by over 2 Bcf/d by 2011 ¾ Tiger Expansion discussions underway 50
Slide 51: Shippers' Precedent Agreements
Shippers’ Precedent Agreements y Five precedent agreements (PA) executed with major Haynesville producers y 100% of the initial design capacity is reserved under PAs ¾ Minimum 10 year term ¾ Foundation Shipper - 15 year term y PA Provisions: ¾ System can be expanded efficiently by 400,000 Dth/d with
Slide 52: Tiger – Project Update
Tiger – Project Update y FERC application filed August, 2009 y FERC has indicated preliminary confirmation of EA y Issuance of certificate from FERC expected in February, 2010 y Pipe, compression and all major materials have been procured y ROW acquisition continues y Construction scheduled to begin
Slide 53: Tiger – Construction Status
Tiger – Construction Status • Right-of-Way (ROW): Estimated to be ~6% of project costs ¾98% of route will abut existing pipelines • Materials: Approximately 31% of project costs ¾Pipe, compressors and the vast majority of other materials have been secured • Construction: Estimated to be ~50% of tota
Slide 54: Interstate Projects
Interstate Projects • We have completed (or participated in the completion of) approximately 790 miles of interstate pipeline subsequent to our acquisition of the Transwestern Pipeline in 2006 and have an additional 365 miles of interstate pipeline under development. Project Cost Project Capacity Mi
Slide 55: Growth Opportunities
Growth Opportunities y Expansion out of Perryville or Transco Station 85 y Perryville Hub y Tiger Expansion y FEP Expansion 55
Slide 56: Propane Operations
Propane Operations Bill Powers President of Heritage Propane 56
Slide 57: Propane Operations
Propane Operations 57
Slide 58: Heritage Propane Segment Overview
Heritage Propane Segment Overview y 3rd Largest Marketer in the United States y Presence in 41 States y 440 Locations y 1.2 Million Customers y 4,500 Employees y National in Scope – Local in Character – Retain Local Brand Name Marketing y Operations Focused in Above Average Population Growth Areas y
Slide 59: Heritage Propane Segment Characteristics
Heritage Propane Segment Characteristics y Margin Based Business y Predominately Bulk Propane y Growing Cylinder Business Segment y Reputable Consolidator of Primarily Mom & Pop Business y Internal Focus on Safe Operating Discipline and Organic Growth at District Level Growth Strategy y Internal Org
Slide 60: Heritage Propane – Retail Gallons
Heritage Propane – Retail Gallons Retail Gallons (millions) 800 700 600 500 400 300 200 100 0 FYE 8/04 FYE 8/05 FYE 8/06 FYE 8/07 YE(1) 12/08 TTM 9/09 (1) ETP changed its fiscal year ending August 31 to December 31 in November 2007. 60
Slide 61: Heritage Propane - Per Gallon Margins
Heritage Propane - Per Gallon Margins Cents Per Gallon(1) (CPG) 120 110 Margin-Fuel 100 Margin-Total 90 80 70 60 50 40 30 20 10 0 FYE 8/04 FYE 8/05 FYE 8/06 FYE 8/07 YE 12/08(2) TTM 9/09 (1) Excludes impact of mark-to-market adjustments on propane – related financial derivatives. (2) ETP changed its
Slide 62: Heritage Propane – Gross Margin $
Heritage Propane – Gross Margin $ Gross Margin Dollars(1) ($ Millions) $700 Fuel Margin $ $600 Total Margin $ $500 $400 $300 $200 $100 FYE 8/04 FYE 8/05 FYE 8/06 FYE 8/07 YE 12/08(2) TTM 9/09 (1) Excludes impact of mark-to-market adjustments on propane – related financial derivatives. (2) ETP change
Slide 63: Financial and Liquidity Overview
Financial and Liquidity Overview Martin Salinas Chief Financial Officer 63
Slide 64: Financial Objectives
Financial Objectives y Continue growth in distributable cash flow y Target projects/assets that provide for appropriate rate of return and that integrate with our asset base y Transactions structured to meet appropriate credit metrics y Maintain attractive cash flow profile y Generate stable cash fl
Slide 65: EBITDA, As Adjusted
EBITDA, As Adjusted ($ million) $1,600 $1,400 $1,200 $1,000 $800 $1,403 $1,368 $600 $1,159 $1,023 $400 $765 $200 $413 $- FY 2005 FY 2006 FY 2007 LTM 12/2007 2008 LTM 9/2009 65
Slide 66: Distributable Cash Flow and Distributions
Distributable Cash Flow and Distributions ($ million) $1,200 1.23x $1,050 1.02x 1.13x $1,000 $972 $957 1.17x $864 $854 $785 $800 $764 1.46x $673 $587 $600 1.12x $402 $400 $263 $234 $200 $- FY 2005 FY 2006 FY 2007 LTM 12/2007 2008 LTM 9/2009 Distributable Cash Flow (DCF) Distributions (Accrual Basis)
Slide 67: Annualized Distribution per Unit
Distribution Per Unit $3.58 $3.58 $3.58 $3.58 $3.58 $3.58 $3.48 $3.50 $3.38 $3.30 Annualized Distribution per Unit $3.23 $3.15 $3.08 $3.00 $3.00 $2.55 $2.50 $2.35 $2.20 $2.00 $1.95 $2.00 $1.85 $1.75 $1.50 5 5 00 5 5 6 6 6 6 00 7 00 7 7 7 8 08 08 8 9 9 9 1) 00 00 00 00 00 00 00 00 00 2 00 2 00 2 00 2
Slide 68: Adjusted Gross Margin By Segment
Adjusted Gross Margin By Segment(1) For the nine months ended September 30, 2009: Retail Propane 27% Midstream 14% Interstate Transportation 12% Intrastate Transportation and Storage 47% (1) Adjusted gross margin is segment gross margin adjusted for selected non-cash items. See reconciliation table
Slide 69: Adjusted Gross Margin
Adjusted Gross Margin For the nine months ended September 30, 2009: ETP Consolidated Retail Propane Midstream Intrastate Transportation and Storage Interstate Transportation Retained Fuel* 12% Intrastate Transportation and Storage Storage 47% 19% Transportation Margin from Revenues Gas Sales and 62%
Slide 70: Adjusted Gross Margin
Adjusted Gross Margin For the nine months ended September 30, 2009: ETP Consolidated Retail Propane Midstream Interstate Transportation Interstate Transportation 12% Operational Gas Intrastate Transportation Sales and Storage 8% Transportation Revenues 92% 70 70
Slide 71: Adjusted Gross Margin
Adjusted Gross Margin For the nine months ended September 30, 2009: ETP Consolidated Retail Propane Midstream 14% Midstream Marketing Interstate Transportation and Other 5% Intrastate Transportation and Storage POP & Keep Whole Fee-based Exposure* 50% 45% * While certain midstream processing activit
Slide 72: Commodity Risk Management
Commodity Risk Management y ETP has a comprehensive Commodity Risk Management Policy that requires periodic meetings of a Risk Oversight Committee that oversees all risk management functions y ETP's middle office maintains data integrity and prepares daily reports to management on risk management ac
Slide 73: Commodity Hedging Activities
Commodity Hedging Activities y During 3Q 2009, we began entering into hedges to lock in prices on a portion of our estimated volumes exposed to natural gas price risk for the remainder of 2009 and 2010. These volumes include net retention volumes, wellhead volumes(1), and natural gas exposure in our
Slide 74: Volume and Transport Capacity Hedges
Volume and Transport Capacity Hedges(1) • Approximately 66% of estimated volumes exposed to natural gas price risk(2) in 2010 are hedged at an average price of $5.79/ MMBtu. • Approximately 8% of estimated volumes exposed to natural gas price risk(2) in 2010 are hedged with options at an average flo
Slide 75: Natural Gas Storage Hedges
Natural Gas Storage Hedges y Our policy is to hedge natural gas stored in our Bammel facility that is managed for our own account with forward sales contracts (financial derivatives), thereby locking in an acceptable margin and eliminating commodity price risk. y Margin is determined by taking the d
Slide 76: Propane Hedges
Propane Hedges y Our policy is to hedge propane fixed price sale commitments that require future physical delivery. y Residential fixed price programs are hedged at 80% of forecasted sales to temper stranded costs from fluctuations in demand. y Commercial and agricultural sales commitments are hedge
Slide 77: Debt Capitalization
Debt Capitalization 9/30/2009 Pro ($ million) 12/31/2008 9/30/2009 Forma(1) Revolving Credit Facilities $ 912 $ 483 $ 207 ETP Senior Notes (Principal Amount): 5.65% due 2012 400 400 400 6.00% due 2013 350 350 350 8.50% due 2014 - 350 350 5.95% due 2015 750 750 750 6.13% due 2017 400 400 400 6.70% du
Slide 78: Debt Maturities
Debt Maturities ($ million) $1,500 $1,250 $1,000 $750 $500 $250 $0 nt 10 11 12 13 14 15 16 17 18 19 20 22 36 37 38 rr e 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Cu or 09 20 Note: Excludes our 50% share of MEP project facility. 78
Slide 79: Strong Liquidity Position
Strong Liquidity Position y Demonstrated ability to raise capital with over $1.4 billion of common unit offerings and $3.1 billion of senior notes issued since December 2007 despite challenging capital market conditions y Available capacity under $2.0 billion credit facility was $1.79 billion as of
Slide 80: Energy Transfer Equity, L.P.
Energy Transfer Equity, L.P. 80
Slide 81: ETE Overview
ETE Overview • Successful initial public offering in early 2006 under the ticker symbol “ETE” • Currently owns the following interests in ETP: • General Partner Interest • 100% of Incentive Distribution Rights • 62.5 million of ETP common units • Generates quarterly distributable cash flow of $123.2
Slide 82: ETE Distributions
ETE Distributions $3.00 Annualized Distribution per Unit $2.10 $2.14 $2.14 $2.04 $2.00 $1.92 $1.92 $1.76 $1.64 $1.56 $1.49 $1.42 $1.36 $1.25 $1.00 $0.00 Q4 F2006 Q1 F2007 Q2 F2007 Q3 F2007 Q4 F2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 82
Slide 83: ETE Distributable Cash Flow and Distributions
ETE Distributable Cash Flow and Distributions ($ million) 1.02x $600 1.01x 0.95x $480 $471 1.00x $433 $427 $400 $324 $324 $332 $317 $200 1.01x $74 $73 $- IPO - Aug 2006(1) FY 2007 LTM 12/2007 2008 LTM 9/2009 Distributable Cash Flow (DCF) Distributions (Accrual Basis) (1) The period from the IPO in F
Slide 84: Liquidity/Financing Considerations
Liquidity/Financing Considerations Revolving Credit facility y $500 million credit facility y Expires in February 2011 y Pricing of Libor + 1.25% y $376 million of available borrowing capacity under the credit facility as of September 30, 2009 with no capital needs at ETE Term B Loan y $1.45 billion
Slide 85: Summary of Energy Transfer's Assets and Advantages
Summary of Energy Transfer’s Assets and Advantages Mackie McCrea President & COO 85
Slide 86: Summary - Energy Transfer
Summary - Energy Transfer • Energy Transfer Partners, L.P. (ETP) is the third largest master limited partnership in the United States. • We own and operate approximately 17,500 miles of intrastate and interstate pipelines with an additional 180 miles of interstate pipeline to be completed. In additi
Slide 87: Pipeline Asset Map
Pipeline Asset Map x = _ Asset overview A =. Y ENERGY TRANSFER ‘
Slide 88: ETP is well Positioned for Future Growth
ETP is well Positioned for Future Growth • Access to Major U.S. Natural Gas Supplies ¾Direct connects to most of the major natural gas plays throughout the U.S. Bossier, Barnett, Eagleford, Haynesville, Fayetteville, Permian Basin, Texas Gulf Coast, San Juan Basin, Piceance and the Uinta Basins ¾A
Slide 89: ETP's Strategically Located Pipeline Assets
ETP’s Strategically Located Pipeline Assets Uinta Basin Uinta Basin Piceance Piceance Basin Basin Anadarko Anadarko Basin Basin West Coast Market Woodford Fayetteville Woodford Basins Fayetteville Bi Basins -d ire cti t on al ke ar Growing Phoenix t M s FW Basin C oa East Texas Market FW Basin st Ea
Slide 90: Supplemental Information
Supplemental Information 90
Slide 91: EBITDA Reconciliation
EBITDA Reconciliation (A) (B) (C) (A)-(B)+(C) (D) (E) (F) (D)-(E)+(F) Four Months Four Months Last Twelve Nine Months Nine Months Last Twelve Ended Ended Months Ended Year Ended Ended Ended Months Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, September 30
Slide 92: Distributable Cash Flow Reconciliation
Distributable Cash Flow Reconciliation Distributable Cash Flow (A) (B) (C) (A)-(B)+(C) (D) (E) (F) (D)-(E)+(F) Four Months Four Months Last Twelve Nine Months Nine Months Last Twelve Ended Ended Months Ended Year Ended Ended Ended Months Ended Year Ended Year Ended Year Ended December 31, December 3
Slide 93: Adjusted Gross Margin Reconciliation
Adjusted Gross Margin Reconciliation For the nine months ended September 30, 2009 Intrastate Transportation Interstate and Storage Transportation Midstream Retail Propane Other Total Segment gross margin $ 693,865 $ 203,349 $ 240,436 $ 509,452 $ 1,131 $ 1,648,233 Unrealized (gains) losses on commodi