8-KFinancial EventsExhibits & Filings

Energy Transfer LP 8-K Report, Auditor Change (Apr 4, 2011)

Filed April 4, 2011For Securities:ETET-PI

Summary

This Form 8-K filing from Energy Transfer Equity, L.P. (ETE) on April 4, 2011, primarily announces a change in the independent registered public accounting firm for its consolidated subsidiary, Regency Energy Partners LP ("Regency"). Effective March 30, 2011, Regency's Audit Committee approved the dismissal of KPMG LLP and the appointment of Grant Thornton LLP as its independent auditor for the fiscal year ending December 31, 2011. This change in auditor for Regency, a significant component of ETE following its acquisition of Regency's general partner interests in May 2010, is a key disclosure. The filing indicates that KPMG's previous audit reports for Regency were unqualified and contained no disagreements or reportable events. Grant Thornton, which already serves as ETE's and Energy Transfer Partners, L.P.'s (ETP) independent auditor, will now also oversee Regency's audits. The SEC filing includes a letter from KPMG confirming agreement with ETE's statements regarding the dismissal.

Key Highlights

  • 1Energy Transfer Equity, L.P. (ETE) subsidiary Regency Energy Partners LP (Regency) changed its independent auditor.
  • 2KPMG LLP was dismissed as Regency's independent auditor as of March 30, 2011.
  • 3Grant Thornton LLP was appointed as Regency's independent auditor for the fiscal year ending December 31, 2011.
  • 4Grant Thornton also serves as the independent auditor for ETE and Energy Transfer Partners, L.P. (ETP).
  • 5KPMG's prior audit reports for Regency were unqualified and did not contain any adverse opinions or disagreements.
  • 6The change in auditor is effective for the upcoming 2011 fiscal year.
  • 7Exhibit 16.1 contains a letter from KPMG LLP to the SEC regarding the auditor change.

Frequently Asked Questions

The Form 8-K is being filed because Energy Transfer Equity, L.P. (ETE) indirectly controls Regency Energy Partners LP (Regency), and Regency has changed its independent registered public accounting firm. This event requires public disclosure under SEC regulations.

Changing auditors can sometimes signal potential issues or a desire for a fresh perspective. However, in this case, the filing explicitly states that there were no disagreements with KPMG and that their previous audit reports were clean. Grant Thornton already audits ETE and ETP, suggesting a move towards auditor consistency across the ETE family of companies.

No, this specific 8-K filing concerns the auditor change for Regency Energy Partners LP. Grant Thornton LLP is already the independent registered public accounting firm for both Energy Transfer Equity, L.P. (ETE) and Energy Transfer Partners, L.P. (ETP), and will continue to serve in that capacity.

The filing explicitly states that there were no disagreements with KPMG on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures. Furthermore, there were no 'reportable events' as defined by SEC regulations. KPMG's audit reports for Regency were also unqualified.