10-QPeriod: Q2 FY2009

Energy Transfer LP Quarterly Report for Q2 Ended Jun 30, 2009

Filed August 10, 2009For Securities:ETET-PI

Summary

Energy Transfer Equity, L.P. (ET) reported its financial results for the fiscal quarter and six months ended June 30, 2009. For the quarter, revenues were $1.15 billion, a decrease from $2.65 billion in the prior year, driven by lower natural gas operations revenue. Net income attributable to partners was $104 million, down from $120 million year-over-year. The company highlighted significant capital expenditures, particularly in its midstream and interstate transportation segments, with ongoing projects like the Midcontinent Express Pipeline (MEP) and Fayetteville Express Pipeline (FEP). Despite challenging market conditions and lower commodity prices affecting customer drilling activity, ET maintained its distributions to unitholders, signaling confidence in its operational performance and liquidity management. The company's balance sheet shows total assets of $11.44 billion and total liabilities of $8.49 billion as of June 30, 2009.

Financial Highlights

19 data points
Beta

Revenue

$1.15B

Net Income

$104.38M

9.1% Net Margin

Cash & Equivalents

$114.36M

Free Cash Flow

$653.49M

Financial Statements
Beta
Revenue$1.15B
SG&A Expenses$54.76M
Operating Expenses$936.66M
Operating Income$215.03M
Interest Expense$119.56M
Net Income$104.38M

Key Highlights

  • 1Total revenues for the second quarter of 2009 were $1.15 billion, a substantial decrease from $2.65 billion in the second quarter of 2008, primarily due to lower natural gas operations revenue.
  • 2Net income attributable to partners for the quarter was $104.1 million ($0.47 per unit), compared to $120.0 million ($0.54 per unit) in the same period last year.
  • 3For the six months ended June 30, 2009, total revenues were $2.78 billion, down from $5.29 billion in the prior year. Net income attributable to partners was $255.1 million ($1.14 per unit), compared to $246.3 million ($1.11 per unit) in the prior year.
  • 4The company made significant capital expenditures, totaling $875.5 million for the six months ended June 30, 2009, primarily directed towards growth projects in its midstream and interstate transportation segments, including contributions to the MEP and FEP projects.
  • 5ET maintained its quarterly cash distribution policy, declaring a distribution of $0.535 per Common Unit for the quarter ended June 30, 2009, an increase from the previous quarter and prior year.
  • 6Total assets stood at $11.44 billion as of June 30, 2009, an increase from $11.07 billion at the end of 2008, while total liabilities were $8.49 billion, down from $8.73 billion.
  • 7The company reported strong liquidity with approximately $1.94 billion available under its ETP Credit Facility as of June 30, 2009.

Frequently Asked Questions

For the second quarter of 2009, Energy Transfer Equity, L.P. experienced a significant decrease in revenues to $1.15 billion from $2.65 billion in the same quarter of 2008. This was primarily driven by lower natural gas operations revenue. Net income attributable to partners also decreased to $104.1 million from $120.0 million year-over-year.

The company is actively investing in growth capital expenditures, particularly in its midstream and interstate transportation segments. Key projects include the Midcontinent Express Pipeline (MEP) and Fayetteville Express Pipeline (FEP). Total capital expenditures for the first six months of 2009 were $875.5 million. The company expects to fund these expenditures through existing resources, cash flow, and potentially further debt or equity issuances if deemed prudent.

As of June 30, 2009, the company reported strong liquidity. ETP had approximately $1.94 billion available under its credit facility. The Parent Company also has a $500 million revolving credit facility with available capacity. Management anticipates these resources, combined with operational cash flow, will be sufficient to fund capital expenditures and working capital needs until the latter half of 2010.

The company is involved in several legal and regulatory proceedings, notably an ongoing FERC investigation into alleged market manipulation related to natural gas trading activities. While the company believes its activities complied with regulations, the outcome of these matters is uncertain and could potentially have a material adverse impact on financial results or liquidity if adverse judgments are rendered.