01—Abstract
Summary
Summary of the 10-K filed March 2, 2009. Cited figures are marked; the original filing is the authoritative source.
Energy Transfer Equity, L.P.
(ETE) reported revenues of $9.29 billiona for the fiscal year ending December 31, 2008, with operating income reaching $1.10 billion and a net income of $375.0 million. The company experienced significant growth in its natural gas operations, completing over 400 miles of new large-diameter pipelines with a capacity of 3.9 Bcf/d. Key expansion projects, such as the Midcontinent Express pipeline and the Fayetteville Express pipeline, are underway, indicating a strategic focus on expanding midstream and interstate transportation capabilities.
Despite challenging market conditions in 2008, ETE successfully secured $1.5 billionb in ETP Senior Notes and raised additional equity, demonstrating resilience in financing its growth initiatives. The retail propane segment, while facing economic headwinds, maintained its strong market position. The company's performance reflects a robust expansion strategy within the energy infrastructure sector, supported by strategic financing and operational execution.
02—Key points
Key Highlights
- Reported total revenues of $9.29 billion for the fiscal year ending December 31, 2008.
- Achieved operating income of $1.10 billion and net income of $375.0 million.
- Completed over 400 miles of new large-diameter natural gas pipelines with a capacity of 3.9 Bcf/d in 2008.
- Announced and commenced construction on several major pipeline projects, including the Midcontinent Express and Fayetteville Express pipelines.
- Successfully raised $1.5 billion in ETP Senior Notes and $600 million in ETP Senior Notes in 2008, alongside equity offerings, to support financing needs.
- The retail propane segment navigated economic challenges by increasing sales prices and growing through acquisitions, despite slightly lower volumes.
- ETP's credit facilities remained largely available, providing significant liquidity to fund ongoing operations and growth projects.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2008filed March 2, 2009Financial Statements
| Revenue | $9.29B |
| SG&A Expenses | $200.18M |
| Operating Expenses | $8.19B |
| Operating Income | $1.10B |
| Interest Expense | $357.54M |
| Net Income | $375.04M |
05—Questions
Frequently Asked Questions
What were the main drivers of Energy Transfer Equity's revenue growth in 2008?
Revenue growth was primarily driven by increased volumes in natural gas operations, the completion of several pipeline expansion projects, and favorable processing margins for a significant portion of the year. The retail propane segment also contributed through acquisition-driven volume increases and improved sales prices.
How did Energy Transfer Equity manage its financing needs given the challenging market conditions in 2008?
ETE demonstrated resilience by successfully issuing $1.5 billion in ETP Senior Notes and raising additional equity. The company also maintained significant available capacity under its credit facilities, totaling approximately $1.42 billion at the end of 2008 (pro forma for recent equity issuance), to fund capital expenditures and working capital needs.
What is the company's strategy for future growth?
The company's strategy focuses on increasing cash distributions to unitholders by supporting ETP's growth through acquisitions and internal expansion projects, particularly in the natural gas midstream and interstate transportation sectors. Key projects include ongoing pipeline construction and development initiatives.
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