8-KOther EventsExhibits & Filings

Energy Transfer LP 8-K Report, Corporate Update (Dec 23, 2013)

Filed December 23, 2013For Securities:ETET-PI

Summary

Energy Transfer Equity, L.P. (ETE) announced a significant capital allocation and corporate structure update on December 23, 2013. The company's board approved a two-for-one common unit split, which is expected to make its units more accessible to a broader investor base. This move aims to increase liquidity and potentially attract new shareholders by lowering the per-unit price. In addition to the unit split, ETE is implementing a substantial $1 billion common unit repurchase program, signaling management's confidence in the company's valuation and its commitment to returning capital to unitholders. Furthermore, ETE announced an agreement to purchase $400 million of Regency Energy Partners LP (RGP) common units as part of RGP's acquisition of Eagle Rock Energy Partners' midstream business. This strategic investment suggests ETE's intent to strengthen its position within the midstream sector and potentially create synergistic opportunities.

Key Highlights

  • 1Approved a two-for-one common unit split to enhance unit accessibility and liquidity.
  • 2Announced a $1 billion common unit repurchase program to return capital to shareholders.
  • 3Agreed to purchase $400 million of Regency Energy Partners LP (RGP) common units.
  • 4The RGP unit purchase is part of RGP's acquisition of Eagle Rock Energy Partners' midstream business.
  • 5The unit split is expected to be effective January 24, 2014, with a record date of January 13, 2014.
  • 6Repurchases under the program will be conducted in the open market at ETE's discretion.
  • 7The purchased RGP units will be acquired contingent upon the closing of the Eagle Rock midstream acquisition.

Frequently Asked Questions

The two-for-one common unit split is intended to make ETE's common units more accessible to a broader range of investors by lowering the per-unit price, thereby potentially increasing trading liquidity and market interest.

Under the $1 billion common unit repurchase program, ETE will buy back its common units in the open market. These repurchases will be at the discretion of the Partnership, subject to market conditions, and any repurchased units will be cancelled. ETE can start, stop, or adjust the program at any time.

The $400 million investment in RGP units is part of ETE's consideration for RGP's acquisition of the midstream business of Eagle Rock Energy Partners. This strategic investment indicates ETE's interest in expanding its presence in the midstream sector and potentially realizing strategic benefits through this partnership.

The unit split is expected to be completed on January 24, 2014, with a record date of January 13, 2014. The purchase of RGP units is effective as of, and conditioned upon, the closing of RGP's acquisition of the Eagle Rock midstream business.