8-KAcquisitions & DispositionsExhibits & Filings

Energy Transfer LP 8-K Report, Acquisition Completed (Dec 5, 2006)

Filed December 5, 2006For Securities:ETET-PI

Summary

Energy Transfer Equity, L.P. (ETE) has reported the completion of a significant asset acquisition through its subsidiary, Energy Transfer Partners, L.P. (ETP). On December 1, 2006, ETP finalized its acquisition of Transwestern Pipeline Company, LLC (Transwestern) for a total value of $1.465 billion. This strategic move significantly expands ETE's operational footprint in the natural gas midstream sector. The acquisition was structured through a series of transactions, culminating in ETP gaining full ownership of Transwestern in exchange for its 50% stake in CCE Holdings, LLC. To fund a substantial portion of this acquisition, ETP received a $1.2 billion cash contribution from its parent, ETE, in the form of Class G Units. Investors should note the strategic importance of the Transwestern Pipeline, a 2,500-mile interstate natural gas system with extensive reach across major supply basins and significant market access.

Key Highlights

  • 1Energy Transfer Partners, L.P. (ETP), a subsidiary of Energy Transfer Equity, L.P. (ETE), has completed the acquisition of Transwestern Pipeline Company, LLC (Transwestern).
  • 2The total transaction value for the acquisition of Transwestern is $1.465 billion.
  • 3ETP funded $1.2 billion of the acquisition through a cash contribution from ETE in exchange for Class G Units.
  • 4The acquisition was completed through a series of transactions, including an exchange of ETP's stake in CCE Holdings, LLC for 100% ownership of Transwestern.
  • 5Transwestern Pipeline is a substantial asset, spanning 2,500 miles of interstate natural gas pipeline.
  • 6The Transwestern Pipeline connects key supply areas (San Juan, Anadarko, Permian Basins) to significant markets in the Midwest, Texas, Arizona, New Mexico, and California.
  • 7This acquisition integrates Transwestern with ETP's existing intrastate pipelines in West Texas, enhancing network connectivity.

Frequently Asked Questions

The main event is the completion of the acquisition of Transwestern Pipeline Company, LLC by Energy Transfer Partners, L.P. (ETP), a subsidiary of Energy Transfer Equity, L.P. (ETE), for $1.465 billion.

ETP received a $1.2 billion cash contribution from its parent, ETE, in exchange for issuing Class G Units. The remaining balance was funded through a series of transactions, including ETP acquiring membership interests in CCE Holdings, LLC and subsequently exchanging its ownership stake for Transwestern.

The primary asset is the Transwestern Pipeline, a 2,500-mile interstate natural gas pipeline system that connects major supply basins like the San Juan, Anadarko, and Permian Basins to markets across the Midwest, Texas, Arizona, New Mexico, and California.

The acquisition significantly expands Energy Transfer's natural gas midstream infrastructure, enhancing its reach and connectivity by integrating the Transwestern Pipeline with its existing intrastate network in West Texas, providing greater access to both supply and demand centers.