What were the main drivers of revenue growth in the nine months ended September 30, 2008?

Revenue growth was primarily driven by strong performance in the midstream and intrastate transportation and storage segments. This was due to increased volumes and favorable market conditions, along with contributions from acquisitions like the Canyon Gathering System and pipeline expansions such as the Southeast Bossier pipeline.

What are the significant financial risks facing Energy Transfer Equity, L.P. as of this filing?

The company faces significant financial risks related to the deteriorating credit and capital markets, which could affect its ability to obtain future funding on acceptable terms. Additionally, a substantial increase in debt to fund capital expenditures and exposure to commodity price volatility in certain segments are key risks. The company is also facing significant legal proceedings with the FERC that could result in substantial penalties and operational restrictions.

How has the company's debt level changed, and what is it being used for?

Long-term debt increased significantly to $7.18 billion as of September 30, 2008, from $5.87 billion at December 31, 2007. This increase is primarily due to borrowings used to finance substantial capital expenditures for growth projects across its midstream and transportation segments, as well as to repay other existing indebtedness.

What is the status of the company's major pipeline projects?

The Midcontinent Express Pipeline (MEP) project, a joint venture with Kinder Morgan, has received FERC approval and commenced construction, with the first phase expected in service by Q2 2009 and the second phase by Q3 2009. The Fayetteville Express Pipeline (FEP) project, a joint venture with Kinder Morgan, is in the agreement stage, with public review planned and an expected in-service date by late 2010 or early 2011.

ET/ET-PI 10-Q Quarterly Report Q3 FY2008 — Revenue, Net Income, EPS

Summary

Energy Transfer Equity, L.P. (ETE) reported increased revenues and operating income for the nine months ended September 30, 2008, compared to the same period in the prior year. This growth was driven by expansions and acquisitions within its midstream and intrastate transportation and storage segments. However, the retail propane segment experienced a decline in operating income. The company's financial position shows a substantial increase in both total assets and total liabilities, largely due to significant capital expenditures for growth projects and increased debt to finance these initiatives. Despite strong operational performance in key segments, ETE faces challenges from the deteriorating credit and capital markets. The company's ability to secure future funding is a concern, potentially impacting its growth strategy. Furthermore, significant legal proceedings with the FERC, related to alleged market manipulation and regulatory violations, pose a substantial risk, with potential penalties and operational restrictions. Investors should monitor the ongoing legal proceedings closely, as well as the company's ability to navigate the challenging economic and financing environment. The company's strategy to focus on fee-based revenues in its transportation segments provides some stability, but exposure to commodity price volatility in its retail propane and midstream operations remains a factor.

Key Highlights

1Total revenues increased by approximately 38% to $7.50 billion for the nine months ended September 30, 2008, compared to $5.40 billion for the same period in 2007.
2Operating income rose by approximately 20% to $846.1 million for the nine months ended September 30, 2008, compared to $706.2 million in the prior year.
3Total assets grew significantly to $11.27 billion as of September 30, 2008, up from $9.46 billion at December 31, 2007, driven by substantial capital expenditures.
4Long-term debt increased to $7.18 billion as of September 30, 2008, from $5.87 billion at December 31, 2007, reflecting increased borrowings for growth projects.
5The company is involved in significant legal proceedings with the FERC concerning alleged market manipulation and regulatory violations, seeking substantial penalties.
6Expansion projects like Midcontinent Express Pipeline (MEP) and Fayetteville Express Pipeline (FEP) are underway, requiring substantial capital investment.
7The company has ceased speculative trading activities in financial derivative instruments as of July 2008.

Energy Transfer LP Quarterly Report for Q3 Ended Sep 30, 2008

Summary

Key Highlights

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