8-KRegulation FDOther EventsExhibits & Filings

Energy Transfer LP 8-K Report, Regulation FD Disclosure (Jul 12, 2011)

Filed July 12, 2011For Securities:ETET-PI

Summary

This Form 8-K filing from Energy Transfer Equity, L.P. (ETE) on July 11, 2011, primarily concerns the company's revised offer to acquire Southern Union Company (SUG). A key focus for investors is ETE's commitment to maintaining or improving credit ratings for itself, SUG, and its subsidiaries, Energy Transfer Partners (ETP) and Regency Energy Partners (Regency). To support this commitment, ETE is exploring the potential drop-down of SUG's gathering and processing assets, known as Southern Union Gas Services (SUGS), to either ETP or Regency. The proceeds from this asset sale would be utilized to reduce debt at SUG and to repay ETE's anticipated borrowings related to the acquisition. The filing also emphasizes the importance of reviewing the joint proxy statement/prospectus for detailed information regarding the merger with SUG. Investors are urged to read this document carefully as it contains crucial information about both companies and the proposed transaction. The company has also included standard forward-looking statement disclaimers and instructions on where to access additional filings and information, including the press release that accompanied this report.

Key Highlights

  • 1Energy Transfer Equity (ETE) reaffirms commitment to credit metrics post-revised offer for Southern Union Company (SUG).
  • 2ETE aims to maintain or improve credit ratings for ETE, SUG, ETP, and Regency.
  • 3Potential drop-down of SUG's gathering and processing assets (SUGS) to ETP or Regency is being considered.
  • 4Proceeds from SUGS drop-down intended to repay SUG debt and ETE's acquisition borrowings.
  • 5Filing incorporates by reference a press release dated July 8, 2011.
  • 6Investors are strongly advised to review the joint proxy statement/prospectus for detailed merger information.
  • 7Information is furnished under Regulation FD and not deemed filed for Section 18 purposes.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose Energy Transfer Equity's (ETE) revised offer to acquire Southern Union Company (SUG) and to communicate ETE's strategy for managing its credit profile during this acquisition process. It also highlights the potential sale of SUG's gathering and processing assets (SUGS) to support debt reduction.

ETE is committed to maintaining or improving the credit ratings of itself, SUG, and its subsidiaries (ETP and Regency). A key part of this strategy involves potentially dropping down SUG's gathering and processing assets (SUGS) to either ETP or Regency. The proceeds generated from this sale would be used to reduce debt, thereby supporting the company's overall creditworthiness.

Investors and security holders are strongly encouraged to carefully read the definitive joint proxy statement/prospectus, which contains important information about ETE, SUG, and the merger. This document, along with other filings, can be accessed for free on the SEC's website (www.sec.gov) or by contacting the investor relations departments of either Energy Transfer Equity or Southern Union Company.

The potential drop-down of Southern Union Gas Services (SUGS) to ETP or Regency is a strategic move to generate cash. This cash will be used to pay down debt at Southern Union Company and to help repay the debt ETE anticipates taking on to fund the cash portion of the SUG acquisition. This action is part of ETE's plan to manage its credit metrics during the acquisition.