Summary
Energy Transfer Equity, L.P. (ETE) reported mixed financial results for the six months ended June 30, 2010, primarily impacted by its significant Regency Transactions completed in May 2010. Consolidated revenues increased year-over-year due to the inclusion of Regency's operations, but net income attributable to partners experienced a substantial decline from $255.9 million in the prior year to $131.6 million. This decrease was largely driven by a significant impairment of investment in an affiliate ($52.6 million) and unfavorable results from non-hedged interest rate derivatives, which offset gains from equity in affiliates. The company's balance sheet saw a substantial increase in assets, particularly in property, plant, and equipment and goodwill, reflecting the Regency acquisition. Long-term debt also increased to fund the transaction and ongoing operations. While the company's operating activities generated positive cash flow, the investing activities were heavily weighted towards acquisitions, with significant capital expenditures also continuing. The company maintained compliance with its debt covenants.
Financial Highlights
41 data points| Revenue | $1.36B |
| Gross Profit | $522.08M |
| SG&A Expenses | $65.04M |
| Operating Expenses | $1.18B |
| Operating Income | $179.26M |
| Interest Expense | $129.04M |
| Net Income | $19.27M |
Key Highlights
- 1Consolidated revenues increased by 16.5% for the six months ended June 30, 2010, compared to the same period in 2009, largely due to the inclusion of Regency Energy Partners operations following the Regency Transactions.
- 2Net income attributable to partners decreased significantly from $255.9 million in the first half of 2009 to $131.6 million in the first half of 2010.
- 3An impairment of investment in an affiliate of $52.6 million and losses on non-hedged interest rate derivatives of $36.9 million negatively impacted net income for the six-month period.
- 4Total assets grew substantially from $12.16 billion at the end of 2009 to $16.36 billion at June 30, 2010, primarily driven by the Regency acquisition, which included significant increases in property, plant and equipment, goodwill, and intangible assets.
- 5Long-term debt increased from $7.75 billion at December 31, 2009, to $8.78 billion at June 30, 2010, reflecting borrowings related to the Regency Transactions and ongoing capital investments.
- 6Cash flow from operating activities remained robust, increasing to $801.9 million for the six months ended June 30, 2010, up from $653.5 million in the prior year.
- 7Cash used in investing activities increased to $786.2 million, primarily due to acquisition-related payments and capital expenditures, compared to $875.5 million in the prior year, which included significant advances to affiliates.