8-KCorporate Changes

Energy Transfer LP 8-K Report, Change in Control (Dec 8, 2010)

Filed December 8, 2010For Securities:ETET-PI

Summary

This 8-K filing from Energy Transfer LP (ET) on December 8, 2010, details a significant change in control related to LE GP, LLC, the general partner of Energy Transfer Equity, L.P. (ETE). Enterprise ETE LLC, a predecessor entity, divested its 40.6% stake in LE GP to Kelcy L. Warren, Chairman of LE GP and CEO of Energy Transfer Partners, L.L.C. (ETP LLC), for $13.5 million in cash. This transaction effectively consolidates a majority ownership (81.2%) of LE GP under Mr. Warren, who was already a key figure within the Energy Transfer structure. This change in ownership of LE GP is noteworthy as LE GP serves as the general partner for ETE, which in turn controls significant Energy Transfer entities including ETP LLC and Regency Energy Partners LP. Investors should view this as a concentration of control and decision-making power within LE GP, and by extension, across various Energy Transfer partnerships, consolidating influence under Mr. Warren. The transaction was funded with personal funds, indicating a direct personal investment by Mr. Warren in this core entity.

Key Highlights

  • 1Enterprise ETE LLC sold its 40.6% membership interest in LE GP, LLC.
  • 2The buyer was Kelcy L. Warren, Chairman of LE GP and CEO of ETP LLC.
  • 3The transaction price was $13.5 million in cash.
  • 4Kelcy L. Warren's ownership in LE GP increased to 81.2% as a result of the sale.
  • 5LE GP is the general partner of Energy Transfer Equity, L.P. (ETE).
  • 6ETE has significant ownership interests in Energy Transfer Partners, L.P. (ETP) and Regency Energy Partners LP.
  • 7The purchase price was paid from Mr. Warren's personal funds.

Frequently Asked Questions

LE GP, LLC is the general partner of Energy Transfer Equity, L.P. (ETE). As the general partner, it holds significant control and operational oversight over ETE and its underlying subsidiaries, including Energy Transfer Partners, L.P. (ETP) and Regency Energy Partners LP.

Kelcy L. Warren is a key executive within the Energy Transfer organization, serving as the Chairman of LE GP and the CEO of Energy Transfer Partners, L.L.C. (ETP LLC). His acquisition of a larger stake in LE GP consolidates his control over this crucial entity, which in turn influences the management and strategic direction of major Energy Transfer partnerships.

This specific transaction involved a sale between two entities within the broader Energy Transfer ecosystem and a key executive. Energy Transfer LP itself, as a publicly traded entity, did not directly receive or pay funds in this particular sale. However, the shift in control of LE GP is a significant event for the governance and strategic direction of the partnerships it oversees.

The purchase price of $13.5 million was calculated in accordance with a pre-defined purchase price methodology specified in the existing agreements among the members of LE GP prior to this transaction.