Summary
Energy Transfer Equity, L.P. (ETE) filed its 2011 10-K report on February 22, 2012, detailing its operations and financial performance. The company's primary assets are its investments in Energy Transfer Partners, L.P. (ETP) and Regency Energy Partners LP (Regency), both master limited partnerships involved in energy midstream services. A significant development highlighted is the pending acquisition of Southern Union Company (SUG) for approximately $9.4 billion, a strategic move expected to enhance ETE's infrastructure and geographic diversity. This acquisition was subject to regulatory approvals and expected to close in the first quarter of 2012. Financially, ETE's performance is largely tied to the distributions received from ETP and Regency. In 2011, ETP's gross margin saw an increase driven by its interstate and midstream operations, particularly from the Tiger pipeline and growth in the Eagle Ford Shale. Regency also experienced revenue and gross margin growth. The company's overall financial health is supported by its credit facilities and ongoing growth capital expenditures planned for 2012 across its subsidiaries.
Financial Highlights
44 data points| Revenue | $8.19B |
| Cost of Revenue | $5.17B |
| Gross Profit | $3.02B |
| SG&A Expenses | $253.00M |
| Operating Expenses | $6.95B |
| Operating Income | $1.24B |
| Interest Expense | $740.00M |
| Net Income | $310.00M |
Key Highlights
- 1Pending acquisition of Southern Union Company (SUG) for $9.4 billion, expected to close in Q1 2012, aiming to expand ETE's midstream and interstate platform.
- 2ETP's 2011 performance showed strength in interstate and midstream operations, with significant revenue growth from the Tiger pipeline and Eagle Ford Shale assets.
- 3Regency reported increased revenues and gross margins in 2011, benefiting from its midstream services in prolific natural gas producing regions.
- 4ETP contributed its propane operations to AmeriGas in January 2012, receiving $1.46 billion in cash and AmeriGas common units, improving ETP's liquidity and focus.
- 5Significant growth capital expenditures are planned for 2012 by ETP, Regency, and Lone Star, totaling $2.6 billion to $2.9 billion, focusing on NGL assets and shale plays.
- 6ETE's financial results are primarily driven by distributions from its investments in ETP and Regency, which form its core cash flow sources.
- 7The company maintained compliance with its debt covenants as of December 31, 2011, and had significant availability under its credit facilities.