What were the primary drivers of ETE's revenue growth in the first nine months of 2011?

ETE's revenue growth was primarily driven by the strong performance of its Energy Transfer Partners (ETP) and Regency Energy Partners (Regency) segments. This included contributions from increased volumes in gathering and processing, higher revenues from interstate transportation systems like the Tiger pipeline, and growth in NGL transportation and services following the acquisition of Lone Star NGL LLC.

How did the announced Southern Union Company (SUG) acquisition impact ETE's financial position and outlook?

The pending SUG acquisition, valued at $9.4 billion, represents a significant strategic move that will substantially increase ETE's scale and asset base, particularly in natural gas transportation and distribution. While not yet reflected in the current period's financials, it will materially impact future debt levels, equity structure, and operational footprint, subject to regulatory approvals and shareholder votes.

What is ETE's current debt profile and how is it being managed?

ETE's long-term debt increased significantly to $11.25 billion as of September 30, 2011. This increase is largely attributable to financing recent acquisitions and capital expenditures, including the acquisition of Lone Star and the issuance of new senior notes by ETP and Regency. The company is managing this debt through a combination of cash flows from operations and credit facilities, and has secured bridge financing for the anticipated SUG merger.

How is ETE addressing its exposure to commodity price volatility?

ETE and its subsidiaries utilize various exchange-traded and over-the-counter (OTC) commodity financial instrument contracts, such as futures, swaps, and options, to manage the impact of volatility in natural gas, NGL, and propane prices. These derivatives are recorded at fair value, and certain contracts are designated as cash flow or fair value hedges to mitigate price risk.

ET/ET-PI 10-Q Quarterly Report Q3 FY2011 — Revenue, Net Income, EPS

Summary

Energy Transfer Equity, L.P. (ETE) reported significant growth in revenues and net income for the nine months ended September 30, 2011, compared to the same period in 2010, driven by strong performance in its ETP and Regency segments. The company also announced several significant strategic transactions, including a pending acquisition of Southern Union Company (SUG) valued at $9.4 billion, and the contribution of ETP's propane operations to AmeriGas for approximately $2.9 billion. Financially, ETE's total assets grew to $20.4 billion from $17.4 billion year-over-year, with a corresponding increase in total liabilities and equity. Long-term debt also increased substantially, reflecting borrowings for acquisitions and capital expenditures. The company's liquidity remained strong, with ample capacity under its revolving credit facilities. Investors should note the substantial debt load, ongoing integration of recent acquisitions, and the impact of the planned SUG merger on future financial structure and operations.

Financial Highlights

44 data points

Beta

Revenue

$2.08B

0.4% Gross Margin

Net Income

$69.08M

0.0% Net Margin

Total Assets

$20.44B

Cash & Equivalents

$167.72M

Free Cash Flow

$404.62M

Financial Statements

Beta

Revenue	$2.08B
Cost of Revenue	$1.35B
Gross Profit	$736.00M
SG&A Expenses	$82.56M
Operating Expenses	$1.81B
Operating Income	$272.00M
Interest Expense	$193.77M
Net Income	$69.08M

Key Highlights

1Revenues increased to $6.06 billion for the nine months ended September 30, 2011, up from $4.82 billion in the prior year period, reflecting strong operational performance across its segments.
2Net income attributable to partners was $223.3 million for the nine months ended September 30, 2011, a significant increase from $116.3 million in the same period of 2010.
3Total assets grew to $20.44 billion as of September 30, 2011, from $17.38 billion as of December 31, 2010, driven by acquisitions and asset growth.
4Long-term debt, less current maturities, increased to $11.25 billion from $9.35 billion, primarily due to financing new acquisitions and capital expenditures.
5The company announced a pending acquisition of Southern Union Company (SUG) valued at $9.4 billion, signaling significant strategic expansion.
6ETE entered into an agreement to contribute its propane operations to AmeriGas for approximately $2.9 billion, indicating a strategic divestiture to focus on core midstream assets.
7Cash provided by operating activities increased to $1.10 billion for the nine months ended September 30, 2011, from $927.7 million in the prior year, supporting operations and investments.

Energy Transfer LP Quarterly Report for Q3 Ended Sep 30, 2011

Summary

Financial Highlights

Key Highlights

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