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Energy Transfer Further Delivers on Commitment to Simplify Structure



  Energy Transfer Further Delivers on Commitment to Simplify Structure

Business Wire

DALLAS -- March 21, 2013

Energy Transfer Partners, L.P. (NYSE:ETP) and Energy Transfer Equity, L.P.
(NYSE:ETE),  announced today that ETP will acquire from ETE its interest in
ETP Holdco Corp. for $3.75 billion of cash and ETP common units. ETP Holdco is
the entity formed by ETP and ETE in 2012 to own the equity interests in
Southern Union Company and Sunoco, Inc. With this acquisition, ETP will own
100% of ETP Holdco. The deal is expected to close in the second quarter of
2013, subject to customary closing conditions.

In exchange for the interest in ETP Holdco, ETE will receive $2.35 billion of
newly issued ETP common units and $1.40 billion in cash. ETE, which owns the
general partner and incentive distribution rights (IDR) of ETP, has agreed to
forego all of the IDR payments on the newly issued ETP units for each of the
first eight consecutive quarters beginning with the quarter in which the
closing of the transaction occurs, and fifty percent of the IDR payments on
the newly issued ETP units for the following eight consecutive quarters.

The agreement between the partnerships is yet another important step in
executing on their commitment to simplify their structures and optimize their
asset portfolios. The announcement of the ETP Holdco acquisition by ETP
follows the February 2013 announcement that ETP’s Southern Union Gas Services
(SUGS) assets would be contributed to Regency Energy Partners, and the
December 2012 announcement that Southern Union’s local distribution companies,
Missouri Gas Energy and New England Gas Company, would be sold.

Following discussions with the credit rating agencies, ETP and ETE have
received feedback that the transaction will have no negative effect on
existing credit ratings at any of the entities.

Energy Transfer Partners, L.P. (NYSE:ETP) is a master limited partnership
owning and operating one of the largest and most diversified portfolios of
energy assets in the United States. ETP currently has natural gas operations
that include approximately 24,000 miles of gathering and transportation
pipelines, treating and processing assets, and storage facilities. ETP also
owns general partner interests, 100% of the incentive distribution rights, and
a 32.4% limited partnership interest in Sunoco Logistics Partners L.P.
(NYSE:SXL), which operates a geographically diverse portfolio of crude oil and
refined products pipelines, terminalling and crude oil acquisition and
marketing assets. ETP also holds a 70% interest in Lone Star NGL, a joint
venture that owns and operates natural gas liquids storage, fractionation and
transportation assets in Texas, Louisiana and Mississippi. In addition, ETP
holds controlling interest in a corporation (ETP Holdco Corporation) that owns
Southern Union Company and Sunoco, Inc. ETP’s general partner is owned by ETE.
For more information, visit the Energy Transfer Partners, L.P. website at
www.energytransfer.com.

Energy Transfer Equity, L.P. (NYSE:ETE) is a master limited partnership, which
owns the general partner and 100% of the incentive distribution rights (IDRs)
of Energy Transfer Partners, L.P. (NYSE:ETP) and approximately 50.2 million
ETP limited partner units; and owns the general partner and 100% of the IDRs
of Regency Energy Partners LP (NYSE:RGP) and approximately 26.3 million RGP
limited partner units. ETE also owns a non-controlling interest in a
corporation (ETP Holdco Corporation) that owns Southern Union Company and
Sunoco, Inc. The ETE family of companies owns approximately 69,000 miles of
natural gas, natural gas liquids, refined products, and crude pipelines. For
more information, visit the Energy Transfer Equity, L.P. web site at
www.energytransfer.com.

Forward-Looking Statements

This press release may include certain statements concerning expectations for
the future that are forward-looking statements as defined by federal law. Such
forward-looking statements are subject to a variety of known and unknown
risks, uncertainties, and other factors that are difficult to predict and many
of which are beyond management’s control. An extensive list of factors that
can affect future results are discussed in the Partnerships’ Annual Reports on
Form 10-K and other documents filed from time to time with the Securities and
Exchange Commission. The Partnerships undertake no obligation to update or
revise any forward-looking statement to reflect new information or events.

The information contained in this press release is available on our website at
www.energytransfer.com.

Contact:

Investor Relations:
Energy Transfer
Brent Ratliff, 214-981-0700
or
Media Relations:
Granado Communications Group
Vicki Granado, 214-599-8785
Cell: 214-498-9272
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