8-KRegulation FD

Energy Transfer LP 8-K Report, Regulation FD Disclosure (Nov 6, 2013)

Filed November 6, 2013For Securities:ETET-PI

Summary

Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP) announced discussions regarding a significant transaction involving Trunkline LNG Company, LLC. Under this proposed exchange, Trunkline LNG, which owns a key LNG regasification facility in Lake Charles, Louisiana, would be transferred to ETE. In return, ETE would redeem a portion of its ETP common units. This facility benefits from two long-term, fixed-fee contracts with BG Group plc, ensuring revenue regardless of utilization. The transaction is expected to be accretive to distributable cash flow per unit for both ETE and ETP, while being credit neutral. It is subject to approvals from the conflicts committees of both partnerships. Furthermore, ETE and ETP are developing a related Lake Charles Liquefaction project, with plans to contribute it to Trunkline LNG upon project completion and financing in mid-2015. Management will provide further details at the upcoming Analyst Day on November 20, 2013.

Key Highlights

  • 1Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP) are exploring an exchange transaction involving Trunkline LNG.
  • 2Trunkline LNG owns an LNG regasification facility at Lake Charles, Louisiana, with two long-term, fixed-fee contracts from BG Group plc.
  • 3The transaction proposes transferring Trunkline LNG to ETE in exchange for redemption of ETP common units held by ETE.
  • 4The deal is anticipated to be accretive to distributable cash flow per unit and credit neutral for both ETE and ETP.
  • 5The transaction is contingent on approvals from the conflicts committees of both ETP and ETE.
  • 6A related Lake Charles Liquefaction project is planned to be contributed to Trunkline LNG around mid-2015.
  • 7More details will be presented at the Energy Transfer Analyst Day on November 20, 2013.

Frequently Asked Questions

The primary asset is Trunkline LNG Company, LLC, which owns an LNG regasification facility located at Lake Charles, Louisiana. This facility has two long-term contracts with BG Group plc for fixed-fee regasification capacity.

The transaction is expected to be accretive to distributable cash flow per unit for both Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP). It is also anticipated to be credit neutral for both entities.

The transaction is subject to the approval of the conflicts committees of the Board of Directors for both ETP and ETE. There is no guarantee that an agreement will be reached or that the transaction will be consummated.

The Lake Charles Liquefaction project, currently under development by ETE and ETP, is expected to be contributed to Trunkline LNG at the closing of the project's construction and financing, which is anticipated in mid-2015. This project is being developed on the same site as the existing regasification facility.