8-KAcquisitions & DispositionsExhibits & Filings

Energy Transfer LP 8-K Report, Acquisition Completed (Jun 6, 2007)

Filed June 6, 2007For Securities:ETET-PI

Summary

This Form 8-K filing by Energy Transfer Equity, L.P. (ETE) on June 6, 2007, serves to formally report on an acquisition completed by its subsidiary, Energy Transfer Partners, L.P. (ETP), on June 1, 2006. ETP acquired the propane operations of Titan Energy Partners LP for approximately $619 million. This strategic move significantly expanded ETP's retail propane segment, adding 146 retail locations across 33 states, approximately 331,000 active customers, and 1,250 employees. The acquisition broadens ETP's geographic diversification, mitigating risks associated with regional weather patterns and economic downturns. Titan's operations, which previously served over 325,000 customers and sold over 200 million gallons of propane in fiscal year 2005, also bring established trade names and a favorable supply agreement with Enterprise Products Partners L.P. The report clarifies that this filing is a late compliance report due to SEC requirements, with the actual acquisition occurring a year prior.

Key Highlights

  • 1Energy Transfer Partners, L.P. (ETP), a subsidiary of Energy Transfer Equity, L.P. (ETE), completed the acquisition of Titan Energy Partners LP's propane operations on June 1, 2006.
  • 2The acquisition cost approximately $619 million, including the payoff of debt and assumption of liabilities.
  • 3The deal added 146 retail propane locations across 33 states, expanding ETP's retail footprint.
  • 4Approximately 331,000 active customers and 1,250 employees were added to ETP's propane segment.
  • 5The acquisition enhances geographic diversification for ETP's operations, reducing weather and economic risk.
  • 6Titan Energy Partners had a five-year propane supply agreement with Enterprise Products Partners L.P. that expires in 2010.
  • 7This 8-K filing is a late compliance report filed on June 6, 2007, to document the June 1, 2006 acquisition.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report on the completion of an acquisition by ETP, a subsidiary of ETE, of Titan Energy Partners LP's propane operations. Although the acquisition occurred on June 1, 2006, this filing is being made on June 6, 2007, to comply with SEC reporting requirements.

ETP acquired the propane operations of Titan Energy Partners LP, which included 146 retail locations across 33 states. The total purchase price was approximately $619 million, which covered the payoff of debt and assumption of liabilities, net of acquired cash.

The acquisition significantly expanded ETP's retail propane segment by adding approximately 331,000 active customers and 1,250 employees. It also broadened ETP's geographic reach into six additional states and new operating territories, enhancing diversification and reducing exposure to localized adverse weather and economic conditions.

The filing includes audited financial statements of Titan Energy Partners LP as of June 30, 2005, and for the periods ending March 31, 2006, along with unaudited pro forma condensed consolidated financial statements of Energy Transfer Equity, L.P. as of May 31, 2006, and for the fiscal year ended August 31, 2005, and the nine months ended May 31, 2006.