8-KLeadership ChangesCorporate ChangesOther Events+1

Energy Transfer LP 8-K Report, Executive Changes (Dec 23, 2009)

Filed December 23, 2009For Securities:ETET-PI

Summary

This 8-K filing from Energy Transfer Equity, L.P. (ETE) on December 23, 2009, primarily announces changes to the Board of Directors of its general partner, LE GP, LLC. Notably, Dan L. Duncan and Ralph S. Cunningham, both significantly involved with Enterprise Entities (including EPE and EPD), were appointed as directors. Concurrently, Kenneth A. Hersh requested not to be re-appointed, citing business-related time constraints. Marshall S. McCrea, III, already an executive at ETP's general partner, was also appointed to the LE GP, LLC board. These appointments increase the size of the LE GP, LLC board from 10 to 11 members. The filing also provides details on ongoing, routine business transactions between ETE's affiliate, Energy Transfer Partners, L.P. (ETP), and the Enterprise Entities. These transactions, covering propane and natural gas, amounted to significant volumes and dollar amounts for the nine months ended September 30, 2009. Investors should note the interconnectedness of these entities and the potential impact of related-party transactions.

Key Highlights

  • 1Appointment of Dan L. Duncan and Ralph S. Cunningham to the Board of Directors of LE GP, LLC, the general partner of ETE.
  • 2Kenneth A. Hersh will not be considered for re-appointment to the LE GP, LLC Board of Directors.
  • 3Marshall S. McCrea, III, also appointed to the LE GP, LLC Board of Directors.
  • 4The size of the LE GP, LLC Board of Directors was increased from 10 to 11 members.
  • 5Disclosure of significant routine business transactions between ETP (an ETE affiliate) and Enterprise Entities for the nine months ended September 30, 2009.
  • 6The filing includes amendments to the LE GP LLC Agreement and a press release announcing the board changes.

Frequently Asked Questions

Dan L. Duncan and Ralph S. Cunningham have been appointed. Dan L. Duncan is Chairman and director of EPE Holdings, LLC and has significant ownership interests in Enterprise Entities. Ralph S. Cunningham is President and CEO of EPE Holdings, LLC. Marshall S. McCrea, III, who was also appointed, serves as President and Chief Operating Officer of ETP's general partner.

Kenneth A. Hersh requested not to be re-appointed to the board due to business-related time constraints. This decision was not based on any disagreement with ETE or its general partner regarding operations, practices, or policies.

The filing details routine purchases and sales of propane and natural gas, as well as transportation services and shared operating expenses for jointly-owned pipelines. For the nine months ended September 30, 2009, ETP's propane operations sold approximately 20.4 million gallons and purchased approximately 206.3 million gallons from Enterprise Entities. ETP's natural gas operations sold significant volumes of NGLs and natural gas, and purchased natural gas imbalances and natural gas.

The increase in the board size from 10 to 11 members allows for the appointment of additional directors. This change, along with the appointments of individuals with significant ties to related entities like Enterprise, may signal strategic realignments or a broadening of governance within the general partner structure.