Summary
Energy Transfer Equity, L.P. (ETE) reported its financial results for the third quarter and the first nine months of 2012. The period was marked by significant strategic activity, most notably the acquisition of Southern Union Company, which closed on March 26, 2012. This acquisition substantially expanded ETE's natural gas pipeline and transportation capacity, as well as its natural gas utility distribution business. Another major event was the merger of ETP with Sunoco, completed on October 5, 2012, and a subsequent Holdco transaction. These transactions significantly altered the company's operational and financial structure for periods subsequent to September 30, 2012. The financial statements show a substantial increase in assets, liabilities, and equity compared to the prior year, largely driven by the Southern Union acquisition. Revenues for the nine months ended September 30, 2012 were $5.81 billion, a decrease from $6.02 billion in the same period of 2011, primarily due to the deconsolidation of ETP's propane business and lower natural gas sales, partially offset by increased NGL sales and gathering, transportation, and other fees.
Financial Highlights
43 data points| Revenue | $2.11B |
| Cost of Revenue | $1.23B |
| Gross Profit | $876.00M |
| SG&A Expenses | $98.00M |
| Operating Expenses | $1.75B |
| Operating Income | $358.00M |
| Interest Expense | $237.00M |
| Net Income | $35.00M |
Key Highlights
- 1Total assets surged to $33.6 billion as of September 30, 2012, from $20.9 billion at December 31, 2011, primarily due to the acquisition of Southern Union.
- 2Long-term debt increased significantly to $17.5 billion from $10.9 billion, reflecting the financing of major acquisitions.
- 3Net income attributable to partners for the nine months ended September 30, 2012, was $255.1 million, compared to $224.0 million in the prior year, despite a net loss of $33.8 million in the third quarter of 2012.
- 4The company incurred significant merger-related costs, with $38.2 million recorded for the Southern Union Merger and $12.0 million for the Sunoco Merger during the nine months ended September 30, 2012.
- 5ETP completed a public offering of $2.0 billion in senior notes in January 2012 to fund acquisitions, and also repurchased approximately $750 million of its senior notes, resulting in a loss on extinguishment of debt.
- 6Segment Adjusted EBITDA increased to $2.06 billion for the nine months ended September 30, 2012, from $1.54 billion in the prior year, driven by strong performance from ETP and Regency, and the inclusion of Southern Union's results.
- 7The company was in compliance with all debt covenants as of September 30, 2012.