Energy Transfer Equity Reports Fourth Quarter and Annual Results

  Energy Transfer Equity Reports Fourth Quarter and Annual Results

Business Wire

DALLAS -- February 19, 2014

Energy Transfer Equity, L.P. (NYSE:ETE) today reported financial results for
the fourth quarter and year ended December31, 2013.

Distributable Cash Flow, as adjusted, was $185 million for the three months
ended December31, 2013 as compared to $193 million for the same period last
year. ETE’s net loss attributable to partners was $172 million for the three
months ended December31, 2013, including the impact of a non-cash goodwill
impairment and a loss on debt extinguishment as discussed below, as compared
to net income attributable to partners of $49 million for the same period last
year.

Distributable Cash Flow, as adjusted, for the year ended December31, 2013 was
$719 million as compared to $668 million for last year, an increase of $51
million. ETE’s net income attributable to partners was $196 million for the
year ended December31, 2013, as compared to $304 million for last year.

ETE’s net income attributable to partners for the three months and year ended
December 31, 2013 were unfavorably impacted by a one-time GAAP accounting loss
arising from the premium paid and non-cash charges pursuant to the partial
tender offer for its 2020 Senior Notes (part of the refinancings discussed
below), as well as ETE’s recognition of a proportionate share of a $689
million non-cash goodwill impairment related to Trunkline LNG Company, LLC
(“TLNG”), the entity that owns a LNG regasification facility in Lake Charles,
Louisiana.

The Partnership’s key accomplishments during or subsequent to the quarter
include the following:

  *In December, ETE completed comprehensive debt refinancings and expects to
    reduce its interest expense by $16 million annually. In addition, the
    refinancing transactions also extended the maturity of a significant
    portion of ETE’s long-term debt.
  *In December, ETE also entered into a revolving credit facility agreement
    which matures in 2018, provides advances up to $600 million and with lower
    interest rates than the prior facility. The new facility provides ETE with
    an option to request increases in its size of up to $1 billion (in total)
    and extend the maturity until 2020.
  *In December, ETE launched a $1 billion common unit buyback program, which
    is intended to be used opportunistically and will be utilized and
    sequenced from time to time depending on the trading price activity and
    performance of ETE’s common units. Through today, ETE has acquired
    approximately 1.7 million ETE common units in the market.
  *In December, ETE agreed to purchase $400 million of Regency’s common units
    as part of the consideration for Regency’s acquisition of the midstream
    business of Eagle Rock Energy Partners effective as of, and conditioned
    on, the closing of that transaction. In order to fund this purchase of
    Regency common units, ETE increased the capacity on its revolving credit
    agreement to $800 million in February.
  *In January, ETE completed a two-for-one split of its outstanding common
    units. All unit and per-unit amounts reported herein have been adjusted to
    give effect to the split.
  *In January, ETE’s Board of Directors approved its fifth consecutive
    increase in its quarterly distribution to $0.34625 per unit (on a
    post-split basis) on ETE Common Units for the quarter ended December 31,
    2013.

In addition, earlier today, ETE closed on its previously announced acquisition
of TLNG from ETP in exchange for the redemption by ETP of 18.71 million ETP
units held by ETE. The transaction was effective as of January 1, 2014.

The Partnership has scheduled a conference call for 8:30 a.m. Central Time,
Thursday, February 20, 2014 to discuss its fourth quarter 2013 results. The
conference call will be broadcast live via an internet webcast, which can be
accessed through www.energytransfer.com and will also be available for replay
on the Partnership’s website for a limited time.

The Partnership’s principal sources of cash flow are derived from
distributions related to its direct and indirect investments in the limited
and general partner interests in ETP and Regency, including 100% of ETP’s and
Regency’s incentive distribution rights, ETP common units, Regency common
units, ETP Class H Units, and going forward the Partnership’s ownership of
TLNG. The Partnership’s primary cash requirements are for general and
administrative expenses, debt service requirements and distributions to its
partners.

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), approximately 30.8 million ETP
common units, and approximately 50.2 million ETP Class H Units, which track
50% of the underlying economics of the general partner interest and IDRs of
Sunoco Logistics Partners L.P. (NYSE: SXL). ETE also owns the general partner
and 100% of the IDRs of Regency Energy Partners LP (NYSE: RGP) and
approximately 26.3 million RGP common units. The Energy Transfer family of
companies owns more than 56,000 miles of natural gas, natural gas liquids,
refined products, and crude oil pipelines. For more information, visit the
Energy Transfer Equity, L.P. web site at www.energytransfer.com.

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 owns and operates
approximately 35,000 miles of natural gas and natural gas liquids pipelines.
ETP owns 100% of Panhandle Eastern Pipe Line Company, LP (the successor of
Southern Union Company) and Sunoco, Inc., and a 70% interest in Lone Star NGL
LLC, a joint venture that owns and operates natural gas liquids storage,
fractionation and transportation assets. ETP also owns the general partner,
100% of the incentive distribution rights, and approximately 33.5 million
common units 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’s general
partner is owned by ETE. For more information, visit the Energy Transfer
Partners, L.P. web site at www.energytransfer.com.

Regency Energy Partners LP (NYSE: RGP) is a growth-oriented, midstream energy
partnership engaged in the gathering and processing, contract compression,
treating and transportation of natural gas and the transportation,
fractionation and storage of natural gas liquids. RGP also holds a 30%
interest in Lone Star NGL LLC, a joint venture that owns and operates natural
gas liquids storage, fractionation, and transportation assets in Texas,
Louisiana and Mississippi. Regency’s general partner is owned by Energy
Transfer Equity, L.P. (NYSE:ETE). For more information, visit the Regency
Energy Partners LP web site at www.regencyenergy.com.

Sunoco Logistics Partners L.P. (NYSE:SXL), headquartered in Philadelphia, is a
master limited partnership that owns and operates a logistics business
consisting of a geographically diverse portfolio of complementary crude oil
and refined product pipeline, terminalling, and acquisition and marketing
assets. SXL’s general partner is owned by Energy Transfer Partners, L.P.
(NYSE: ETP). For more information, visit the Sunoco Logistics Partners, L.P.
web site at www.sunocologistics.com.

                                                      
                                                         
ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(unaudited)
                                                         
                                                         December 31,
                                                         2013       2012
ASSETS
                                                                      
CURRENT ASSETS                                           $ 6,536      $ 5,597
                                                                      
PROPERTY, PLANT AND EQUIPMENT, net                         30,682       28,284
                                                                      
NON-CURRENT ASSETS HELD FOR SALE                           —            985
ADVANCES TO AND INVESTMENTS IN UNCONSOLIDATED              4,014        4,737
AFFILIATES
NON-CURRENT PRICE RISK MANAGEMENT ASSETS                   18           43
GOODWILL                                                   5,894        6,434
INTANGIBLES ASSETS, net                                    2,264        2,291
OTHER NON-CURRENT ASSETS, net                             922         533
Total assets                                             $ 50,330     $ 48,904
                                                                      
                                                                      
LIABILITIES AND EQUITY
                                                                      
CURRENT LIABILITIES                                      $ 6,500      $ 5,845
                                                                      
NON-CURRENT LIABILITIES HELD FOR SALE                      —            142
LONG-TERM DEBT, less current maturities                    22,562       21,440
DEFERRED INCOME TAXES                                      3,865        3,566
NON-CURRENT PRICE RISK MANAGEMENT LIABILITIES              73           162
SERIES A CONVERTIBLE PREFERRED UNITS                       —            331
OTHER NON-CURRENT LIABILITIES                              1,019        995
                                                                      
COMMITMENTS AND CONTINGENCIES
                                                                      
PREFERRED UNITS OF SUBSIDIARY                              32           73
                                                                      
EQUITY:
Total partners’ capital                                    1,078        2,113
Noncontrolling interest                                   15,201      14,237
Total equity                                              16,279      16,350
Total liabilities and equity                             $ 50,330     $ 48,904

                                                   
                                                       
ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per unit data)
(unaudited)
                                                       
                             Three Months Ended        Years Ended
                             December 31,              December 31,
                             2013        2012         2013        2012
REVENUES:                    $ 12,607     $ 11,313     $ 48,335     $ 16,964
COSTS AND EXPENSES:
Cost of products sold          11,118       9,883        42,554       13,088
Operating expenses             515          463          1,642        1,116
Depreciation and               351          300          1,313        871
amortization
Selling, general and           87           215          586          529
administrative
Goodwill impairment           689        —          689        —      
Total costs and expenses      12,760     10,861     46,784     15,604 
OPERATING INCOME (LOSS)        (153   )     452          1,551        1,360
OTHER INCOME (EXPENSE):
Interest expense, net of       (308   )     (286   )     (1,221 )     (1,018 )
interest capitalized
Bridge loan related fees       —            —            —            (62    )
Equity in earnings of
unconsolidated                 54           94           236          212
affiliates
Gain on deconsolidation        —            —            —            1,057
of Propane Business
Gain on sale of AmeriGas       —            —            87           —
common units
Losses on                      (155   )     —            (162   )     (123   )
extinguishments of debt
Gains (losses) on
interest rate                  (2     )     4            53           (19    )
derivatives
Non-operating
environmental                  (168   )     —            (168   )     —
remediation
Other, net                    (1     )    2          (1     )    30     
INCOME (LOSS) FROM
CONTINUING OPERATIONS          (733   )     266          375          1,437
BEFORE INCOME TAX
EXPENSE
Income tax expense            (43    )    21         93         54     
(benefit)
INCOME (LOSS) FROM             (690   )     245          282          1,383
CONTINUING OPERATIONS
Income (loss) from            (11    )    27         33         (109   )
discontinued operations
NET INCOME (LOSS)              (701   )     272          315          1,274
LESS: NET INCOME (LOSS)
ATTRIBUTABLE TO               (529   )    223        119        970    
NONCONTROLLING INTEREST
NET INCOME (LOSS)              (172   )     49           196          304
ATTRIBUTABLE TO PARTNERS
GENERAL PARTNER’S
INTEREST IN NET INCOME        (1     )    1          —          2      
(LOSS)
LIMITED PARTNERS’
INTEREST IN NET INCOME       $ (171   )   $ 48        $ 196       $ 302    
(LOSS)
INCOME (LOSS) FROM
CONTINUING OPERATIONS
PER LIMITED PARTNER
UNIT:
Basic                        $ (0.31  )   $ 0.07      $ 0.33      $ 0.59   
Diluted                      $ (0.31  )   $ 0.07      $ 0.33      $ 0.59   
NET INCOME (LOSS) PER
LIMITED PARTNER UNIT:
Basic                        $ (0.31  )   $ 0.09      $ 0.35      $ 0.57   
Diluted                      $ (0.31  )   $ 0.09      $ 0.35      $ 0.57   

                                                       
                                                                             
ENERGY TRANSFER EQUITY, L.P.
DISTRIBUTABLE CASH FLOW
(Dollars in millions)
(unaudited)
                                                                             
                                     Three Months Ended    Years Ended
                                     December 31,          December 31,
                                     2013      2012       2013      2012
“Distributable Cash Flow,”
“Distributable Cash Flow, as
adjusted,” and “Distribution
Coverage Ratio” ^(1):
Cash distributions from ETP
associated with: ^(2)
Limited partner interest             $ 45       $ 45       $ 268      $ 180
Class H Units                          54         —          105        —
General partner interest               5          5          20         20
Incentive distribution rights          173        148        701        529
IDR relinquishments                    (57  )     (31  )     (199 )     (90  )
Distributions credited to Holdco      —        —        (68  )    —    
consideration ^ (3)
Total cash distributions from          220        167        827        639
ETP
Cash distributions from Regency
associated with: ^ (4)
Limited partner interest               12         12         48         48
General partner interest               2          1          5          5
Incentive distribution rights          4          2          12         8
IDR relinquishment                    (1   )    —        (3   )    —    
Total cash distributions from          17         15         62         61
Regency
Cash dividends from Holdco ^(5)       —        75       50       75   
Total cash distributions from          237        257        939        775
ETP, Regency and Holdco
Distributable cash flow
attributable to Southern Union
(including acquisition-related         —          —          —          82
expenses) from March 26, 2012
through September 30, 2012 ^ (6)
Deduct expenses of the Parent
Company on a stand-alone basis:
Selling, general and
administrative expenses,               (11  )     (4   )     (49  )     (52  )
excluding non-cash compensation
expense
Interest expense, net of
amortization of financing costs,
interest income, and realized          (41  )     (60  )     (190 )     (232 )
gains and losses on interest
rate swaps
Bridge financing costs                —        —        —        (62  )
Distributable Cash Flow                185        193        700        511
Transaction-related expenses          —        —        19       157  
^(7)
Distributable Cash Flow, as          $ 185     $ 193     $ 719     $ 668  
adjusted
                                                                             
Cash distributions to be paid to
the partners of ETE:
Distributions to be paid to          $ 194      $ 178      $ 748      $ 703
limited partners
Distributions to be paid to           1        —        2        1    
general partner
Total cash distributions to be       $ 195     $ 178     $ 750     $ 704  
paid to the partners of ETE ^(8)
                                                                             
Distribution Coverage Ratio ^(9)     0.95   x   1.08   x   0.96   x   0.95   x
                                                                             
Reconciliation of Non-GAAP
“Distributable Cash Flow” and
“Distributable Cash Flow, as
adjusted” to GAAP “Net income
attributable to partners” ^(1):
Net income (loss) attributable       $ (172 )   $ 49       $ 196      $ 304
to partners
Equity in earnings related to
investments in ETP, Regency and        (44  )     (114 )     (617 )     (676 )
Holdco
Total cash distributions from          237        257        939        775
ETP, Regency and Holdco
Amortization included in
interest expense (excluding ETP        4          3          18         13
and Regency)
Fair value adjustment of ETE           —          3          9          8
Preferred Units
Loss on debt tender offering           156        —          156        —
Other non-cash (excluding ETP,        4        (5   )    (1   )    87   
Regency and Holdco)
Distributable Cash Flow                185        193        700        511
Transaction-related expenses          —        —        19       157  
^(7)
Distributable Cash Flow, as          $ 185     $ 193     $ 719     $ 668  
adjusted

     
       This press release and accompanying schedules include the non-generally
       accepted accounting principle (“non-GAAP”) financial measure of
       Distributable Cash Flow. The schedule above provides a reconciliation
       of this non-GAAP financial measure to its most directly comparable
^(1)   financial measure calculated and presented in accordance with GAAP. The
       Partnership’s Distributable Cash Flow should not be considered as an
       alternative to GAAP financial measures such as net income, cash flow
       from operating activities or any other GAAP measure of liquidity or
       financial performance.
       
       Distributable Cash Flow. The Partnership defines Distributable Cash
       Flow for a period as cash distributions expected to be received from
       ETP and Regency in respect of such period in connection with the
       Partnership’s investments in limited and general partner interests of
       ETP and Regency, net of the Partnership’s cash expenditures for general
       and administrative costs and interest expense. The Partnership’s
       definition of Distributable Cash Flow also includes distributable cash
       flow related to Southern Union for the period from March 26, 2012
       (Southern Union acquisition date) until Southern Union was contributed
       to Holdco on October 5, 2012. From October 5, 2012 until ETE’s 60%
       interest in Holdco was contributed to ETP on April 30, 2013,
       Distributable Cash Flow reflects dividends expected to be received from
       Holdco. The Partnership defines distributable cash flow for Southern
       Union as net income, adjusted for certain non-cash items, less
       maintenance capital expenditures. Non-cash items include depreciation
       and amortization, deferred income taxes, non-cash compensation expense,
       gains and losses on disposals of assets, the allowance for equity funds
       used during construction, and non-cash impairment charges.
       
       Distributable Cash Flow is a significant liquidity measure used by the
       Partnership’s senior management to compare net cash flows generated by
       the Partnership to the distributions the Partnership expects to pay its
       unitholders. Using this measure, the Partnership’s management can
       compute the coverage ratio of estimated cash flows for a period to
       planned cash distributions for such period.
       
       Distributable Cash Flow is also an important non-GAAP financial measure
       for our limited partners since it indicates to investors whether the
       Partnership’s investments are generating cash flows at a level that can
       sustain or support an increase in quarterly cash distribution levels.
       Financial measures such as Distributable Cash Flow are quantitative
       standards used by the investment community with respect to publicly
       traded partnerships because the value of a partnership unit is in part
       measured by its yield (which in turn is based on the amount of cash
       distributions a partnership can pay to a unitholder). The GAAP measure
       most directly comparable to Distributable Cash Flow is net income for
       ETE on a stand-alone basis (“Parent Company”). The accompanying
       analysis of Distributable Cash Flow is presented for the three and
       twelve months ended December 31, 2013 and 2012 for comparative
       purposes.
       
       Distributable Cash Flow, as adjusted. The Partnership defines
       Distributable Cash Flow, as adjusted, for a period as cash
       distributions expected to be received from ETP and Regency in respect
       of such period in connection with the Partnership’s investments in
       limited and general partner interests of ETP and Regency, plus the
       distributable cash flow related to Southern Union (as described in the
       definition of Distributable Cash Flow above), dividends expected to be
       received from Holdco (as described in the definition of Distributable
       Cash Flow above), net of the Partnership’s cash expenditures for
       general and administrative costs and interest expense, excluding
       certain items, such as transaction-related expenses. Due to the cash
       expenses that were incurred during the three and twelve months ended
       December 31, 2013 and 2012 in connection with the Partnership’s merger
       and acquisition activities and other transactions, Distributable Cash
       Flow, as adjusted, for the three and twelve months ended December 31,
       2013 and 2012 is a significant liquidity measure used by the
       Partnership’s senior management to compare net cash flows generated by
       the Partnership to the distributions the Partnership expects to pay its
       unitholders. Using this measure, the Partnership’s management can
       compute the coverage ratio of estimated cash flows for a period to
       planned cash distributions for such period. The GAAP measure most
       directly comparable to Distributable Cash Flow, as adjusted, is net
       income for the Parent Company on a stand-alone basis. The accompanying
       analysis of Distributable Cash Flow, as adjusted, is presented for the
       three and twelve months ended December 31, 2013 and 2012 for
       comparative purposes.
       
       For the three months ended December 31, 2013, cash distributions
       received from ETP consist of cash distributions paid on February 14,
^(2)   2014 in respect of the quarter ended December 31, 2013. For the three
       months ended December 31, 2012, cash distributions received from ETP
       consist of cash distributions paid on February 14, 2013 in respect of
       the quarter ended December 31, 2012.
       
       For the year ended December 31, 2013, cash distributions received from
       ETP consist of cash distributions paid on May 15, 2013 in respect of
       the quarter ended March 31, 2013, cash distributions paid on August 14,
       2013 in respect of the quarter ended June 30, 2013, cash distributions
       paid on November 14, 2013 in respect of the quarter ended September 30,
       2013 and cash distributions paid on February 14, 2014 in respect of the
       quarter ended December 31, 2013. For the year ended December 31, 2012,
       cash distributions received from ETP consist of cash distributions paid
       on May 15, 2012 in respect of the quarter ended March 31, 2012, cash
       distributions paid on August 14, 2012 in respect of the quarter ended
       June 30, 2012, cash distributions paid on November 14, 2012 in respect
       of the quarter ended September 30, 2012 and cash distributions paid on
       February 14, 2013 in respect of the quarter ended December 31, 2012.
       
       For the year ended December 31, 2013, cash distributions paid by ETP
       exclude distributions paid in respect of the quarter ended March 31,
       2013 on 49.5 million ETP common units issued to ETE as a portion of the
       consideration for ETP’s acquisition of ETE’s interest in Holdco on
^(3)   April 30, 2013. These newly acquired ETP common units received cash
       distributions on May 15, 2013; however, such distributions were reduced
       from the total cash portion of the consideration paid to ETE in
       connection with the April 30, 2013 Holdco transaction pursuant to the
       contribution agreement.
       
       For the three months ended December 31, 2013, cash distributions
       received from Regency consist of cash distributions paid on February
^(4)   14, 2014 in respect of the quarter ended December 31, 2013. For the
       three months ended December 31, 2012, cash distributions received from
       Regency consist of cash distributions paid on February 14, 2013 in
       respect of the quarter ended December 31, 2012.
       
       For the year ended December 31, 2013, cash distributions received from
       Regency consist of cash distributions paid on May 13, 2013 in respect
       of the quarter ended March 31, 2013, cash distributions paid on August
       14, 2013 in respect of the quarter ended June 30, 2013, cash
       distributions paid on November 14, 2013 in respect of the quarter ended
       September 30, 2013 and cash distributions paid on February 14, 2014 in
       respect of the quarter ended December 31, 2013. For the year ended
       December 31, 2012, cash distributions received from Regency consist of
       cash distributions paid on May 14, 2012 in respect of the quarter ended
       March 31, 2012, cash distributions paid on August 14, 2012 in respect
       of the quarter ended June 30, 2012, cash distributions paid on November
       14, 2012 in respect of the quarter ended September 30, 2012 and cash
       distributions paid on February 14, 2013 in respect of the quarter ended
       December 31, 2012.
       
       For the three months ended December 31, 2013, cash dividends received
^(5)   from Holdco consist of cash dividends paid on February 14, 2013 in
       respect of the quarter ended December 31, 2012.
       
       Distributable cash flow attributable to Southern Union relates to the
       period while Southern Union was our wholly-owned subsidiary, from our
^(6)   acquisition on March 26, 2012 to our contribution of Southern Union in
       connection with the Holdco Transaction on October 5, 2012.
       Distributable cash flow attributable to Southern Union was calculated
       as follows (in millions):

                                                       Period from Acquisition
                                                     (March 26, 2012) to
                                                       October 5, 2012
Net income                                             $       5
Amortization of finance costs charged to interest              (21      )
Depreciation and amortization                                  137
Deferred income taxes                                          18
Non-cash equity-based compensation, accretion                  5
expense and amortization of regulatory assets
Other, net                                                     28
Maintenance capital expenditures                              (90      )
Distributable cash flow attributable to Southern               82
Union
Acquisition-related expenses recognized by                    57       
Southern Union
Distributable cash flow, as adjusted, attributable     $       139      
to Southern Union

       Distributable cash flow attributable to Southern Union for the period
       from our acquisition to December 31, 2012 reflected above included
       change in control payments and legal and other outside service costs
      totaling $72 million offset by benefit plan curtailment gains of $15
       million. The net amount of $57 million was included in merger-related
       expenses that were added back to calculate ETE’s Distributable Cash
       Flow, as adjusted.
       
       Transaction-related expenses for the year ended December 31, 2012
       related to ETE’s acquisition of Southern Union consisted of $62 million
       bridge financing costs, $38 million of selling, general and
^(7)   administrative expenses incurred by ETE and $57 million of
       merger-related expenses that were incurred directly by Southern Union.
       Transaction-related expenses for the year ended December 31, 2013
       primarily related to costs related the Holdco Transaction in April
       2013.
       
       For the three months ended December 31, 2013, cash distributions to be
       paid by ETE consist of cash distributions paid on February 19, 2014 in
^(8)   respect of the quarter ended December 31, 2013. For the three months
       ended December 31, 2012, cash distributions paid by ETE consist of cash
       distributions paid on February 19, 2013 in respect of the quarter ended
       December 31, 2012.
       
       For the year ended December 31, 2013, cash distributions paid or
       expected to be paid by ETE consist of cash distributions paid on May
       17, 2013 in respect of the quarter ended March 31, 2013, cash
       distributions paid on August 19, 2013 in respect of the quarter ended
       June 30, 2013, cash distributions paid on November 19, 2013 in respect
       of the quarter ended September 30, 2013 and cash distributions paid on
       February 19, 2014 in respect of the quarter ended December 31, 2013.
       For the year ended December 31, 2012, cash distributions paid by ETE
       consist of cash distributions paid on May 18, 2012 in respect of the
       quarter ended March 31, 2012, cash distributions paid on August 17,
       2012 in respect of the quarter ended June 30, 2012, cash distributions
       paid on November 16, 2012 in respect of the quarter ended September 30,
       2012 and cash distributions paid on February 19, 2013 in respect of the
       quarter ended December 31, 2012.
       
       Distribution Coverage Ratio is calculated as Distributable Cash Flow,
^(9)   as adjusted, divided by total cash distributions to be paid to the
       partners of ETE.

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
 
Press spacebar to pause and continue. Press esc to stop.