8-KFinancial EventsExhibits & Filings

Energy Transfer LP 8-K Report, Auditor Change (Apr 4, 2013)

Filed April 4, 2013For Securities:ETET-PI

Summary

This Form 8-K filing from Energy Transfer Equity, L.P. (ETE) on April 4, 2013, primarily reports a change in the independent registered public accounting firm for its consolidated subsidiary, Sunoco Logistics Partners L.P. (Sunoco Logistics). Effective April 1, 2013, Sunoco Logistics dismissed Ernst & Young LLP and appointed Grant Thornton LLP as its new independent auditor for the fiscal year ending December 31, 2013. This change is a direct result of the recent acquisition of Sunoco Logistics' general partner by Energy Transfer Partners, L.P. (ETP), a subsidiary of ETE, which consequently made Sunoco Logistics a consolidated subsidiary of ETE. The decision to align auditors simplifies the audit process and leverages the existing relationship where Grant Thornton already serves as the independent auditor for both ETE and ETP. Investors should note that this is a procedural change related to corporate structure and does not indicate any issues with prior financial reporting by Ernst & Young.

Key Highlights

  • 1Sunoco Logistics Partners L.P. (Sunoco Logistics) has changed its independent registered public accounting firm.
  • 2Ernst & Young LLP has been dismissed as Sunoco Logistics' auditor, effective April 1, 2013.
  • 3Grant Thornton LLP has been appointed as the new independent auditor for Sunoco Logistics for the fiscal year ending December 31, 2013.
  • 4The auditor change is a result of Sunoco Logistics becoming a consolidated subsidiary of Energy Transfer Equity, L.P. (ETE) following the acquisition of its general partner by ETE subsidiary Energy Transfer Partners, L.P. (ETP).
  • 5Grant Thornton LLP already serves as the independent auditor for ETE and ETP, aligning the auditing firms for the consolidated group.
  • 6There were no disagreements or reportable events with the former auditor, Ernst & Young LLP, that would raise concerns.
  • 7The filing includes an exhibit: a letter from Ernst & Young LLP to the SEC agreeing with the statements made in the 8-K regarding the change.

Frequently Asked Questions

Sunoco Logistics changed its auditor as part of the integration process following the acquisition of its general partner by Energy Transfer Partners, L.P. (ETP), a subsidiary of Energy Transfer Equity, L.P. (ETE). This acquisition resulted in Sunoco Logistics becoming a consolidated subsidiary of ETE, and the company decided it would be beneficial to have the same auditing firm (Grant Thornton LLP) that audits ETE and ETP also audit Sunoco Logistics.

No, the filing explicitly states that there were no disagreements with Ernst & Young LLP on any matters of accounting principles, practices, financial statement disclosure, or auditing scope or procedures during Sunoco Logistics' fiscal years 2011 and 2012, and the subsequent interim period through April 1, 2013. There were also no 'reportable events' as defined by Regulation S-K.

No, the filing indicates a smooth transition. The audit reports from Ernst & Young LLP for Sunoco Logistics' financial statements and internal controls did not contain any adverse opinions, disclaimers of opinion, or qualifications/modifications. The change is presented as a strategic decision related to corporate structure and audit efficiency within the broader Energy Transfer organization.

Having the same auditing firm, Grant Thornton LLP, for ETE, ETP, and now Sunoco Logistics streamlines the auditing process for the consolidated entity. It allows for greater consistency, potentially reduces audit costs, and facilitates easier coordination and information sharing across the related entities' financial audits.