8-KOther EventsExhibits & Filings

Energy Transfer LP 8-K Report, Corporate Update (May 11, 2010)

Filed May 11, 2010For Securities:ETET-PI

Summary

Energy Transfer Equity, L.P. (ETE) announced on May 11, 2010, a significant strategic transaction involving Energy Transfer Partners, L.P. (ETP) and Regency Energy Partners LP (Regency). ETE is acquiring a 100% equity interest in Regency's general partner from an affiliate of GE Energy Financial Services (GE EFS) through the issuance of $300 million in Series A Convertible Preferred Units. This move positions ETE to control Regency's general partner, influencing its strategic direction. In conjunction with this acquisition, ETE is also restructuring its holdings in Midcontinent Express Pipeline LLC (MEP). ETP will transfer its 49.9% interest in MEP to ETE in exchange for ETP common units, and ETE will then contribute this interest to Regency for newly issued Regency common units. This complex series of transactions is expected to close within 30 days and will result in ETE holding significant stakes in both Regency (approximately 22%) and ETP (approximately 28%), enhancing ETE's overall influence and strategic footprint in the midstream energy sector.

Key Highlights

  • 1Energy Transfer Equity (ETE) to acquire 100% equity interest in the general partner of Regency Energy Partners (Regency).
  • 2Acquisition to be funded by issuing $300 million of ETE Series A Convertible Preferred Units to GE Energy Financial Services (GE EFS).
  • 3ETP to transfer a 49.9% interest in Midcontinent Express Pipeline LLC (MEP) to ETE.
  • 4ETE to contribute the MEP interest to Regency in exchange for newly issued Regency common units.
  • 5Regency will indirectly own a 49.9% interest in MEP following the transactions.
  • 6ETE expects to hold approximately 22% of outstanding Regency common units and 28% of ETP common units post-closing.
  • 7Transactions are subject to customary closing conditions and lender consents, with an expected closing within 30 days.

Frequently Asked Questions

This 8-K filing announces Energy Transfer Equity's (ETE) definitive agreement to acquire the general partner of Regency Energy Partners (Regency) and a related series of transactions involving Energy Transfer Partners (ETP) and Midcontinent Express Pipeline LLC (MEP). These actions are intended to consolidate ETE's control and strategic influence in its midstream assets.

ETE is financing the acquisition by issuing 3,000,000 Series A Convertible Preferred Units to GE Energy Financial Services (GE EFS). These preferred units have an aggregate liquidation preference of $300.0 million.

ETP is transferring its 49.9% interest in MEP to ETE. ETE will then contribute this interest to Regency in exchange for new Regency common units. This series of transactions effectively places a significant portion of MEP under Regency's indirect ownership, aligning with ETE's broader strategic goals for its partnerships.

Following the closing of these transactions, ETE anticipates owning approximately 22% of the outstanding Regency common units and approximately 28% of the outstanding ETP common units. This increases ETE's overall economic and control interest in its key operating partnerships.