8-KLeadership Changes

Energy Transfer LP 8-K Report, Executive Changes (Nov 9, 2010)

Filed November 9, 2010For Securities:ETET-PI

Summary

This 8-K filing from Energy Transfer Equity, L.P. (ET) on November 9, 2010, reports the immediate resignation of Ralph S. Cunningham from the Board of Directors of LE GP, LLC, the general partner of Energy Transfer Equity. Dr. Cunningham's departure was stated to be voluntary and not a result of any disagreements with the company. Dr. Cunningham's affiliation with EPE Holdings, LLC, a significant unitholder in Energy Transfer Equity, is noted. EPE Holdings owns approximately 17.5% of the outstanding common units. However, the filing clarifies that EPE has no contractual right to appoint a director, and thus, no replacement for Dr. Cunningham is anticipated. Investors should note that this is a governance-related change and not directly tied to operational performance, although significant unitholder representation on the board can be a point of interest.

Key Highlights

  • 1Ralph S. Cunningham resigned from the Board of Directors of LE GP, LLC, the general partner of Energy Transfer Equity, L.P. (ET).
  • 2The resignation was effective immediately as of November 9, 2010.
  • 3Dr. Cunningham's resignation was not due to any disagreement with the Partnership or its general partner regarding operations, practices, or policies.
  • 4Dr. Cunningham is the Director, President, and CEO of EPE Holdings, LLC.
  • 5EPE Holdings, LLC is the general partner of Enterprise GP Holdings, L.P. (EPE).
  • 6EPE owns approximately 17.5% of ET's outstanding common units and a non-controlling interest in LE GP.
  • 7No replacement for Dr. Cunningham is expected as EPE has no contractual right to appoint a director to the LE GP board.

Frequently Asked Questions

Ralph S. Cunningham's resignation from the Board of Directors of LE GP, LLC, the general partner of Energy Transfer Equity, L.P., is a governance change. It signifies the departure of a director who was affiliated with a significant unitholder (EPE Holdings, LLC).

According to the filing, Dr. Cunningham's decision to resign was not due to any disagreement with Energy Transfer Equity or its general partner concerning operations, practices, or policies.

The filing states that no replacement is expected because EPE Holdings, LLC (which owns approximately 17.5% of ET's common units) does not have a contractual right to appoint a director to the LE GP board.

EPE Holdings, LLC, through its ownership of approximately 17.5% of Energy Transfer Equity's common units and its role as a partner in LE GP, has a significant economic interest. However, its direct influence on board appointments is limited by contractual rights as noted in this filing.