Exhibit 99.1
ENERGY TRANSFER PARTNERS
REPORTS QUARTERLY AND ANNUAL RESULTS
REPORTS QUARTERLY AND ANNUAL RESULTS
Dallas — February 18, 2010—Energy Transfer Partners, L.P. (NYSE:ETP)today reported EBITDA, as adjusted, distributable cash flow, and net income for the quarter and full year ended December 31, 2009. EBITDA, as adjusted, for the three months ended December 31, 2009 totaled $477.1 million, an increase of $139.3 million from the three months ended December 31, 2008. Distributable cash flow for the three months ended December 31, 2009 totaled $230.4 million, a decrease of $10.9 million from the three months ended December 31, 2008. Net income for the three months ended December 31, 2009 totaled $261.2 million, an increase of $110.2 million from the three months ended December 31, 2008.
For the year ended December 31, 2009, EBITDA, as adjusted, totaled $1.51 billion, an increase of $104.3 million from the year ended December 31, 2008. Distributable cash flow for the year ended December 31, 2009 was $962.1 million, a decrease of $88.4 million from the year ended December 31, 2008. Net income for the year ended December 31, 2009 totaled $791.5 million, a decrease of $74.5 million from the year ended December 31, 2008.
The Partnership has scheduled a conference call for 2:00 p.m. Central Time, Friday, February 19, 2010 to discuss the 2009 results. The conference call will be broadcast live via an internet web cast, which can be accessed throughwww.energytransfer.com. The call will be available for replay on the Partnership’s website for a limited time.
EBITDA, as adjusted, and distributable cash flow are non-GAAP financial measures used by industry analysts, investors, lenders, and rating agencies to assess the financial performance and the operating results of the Partnership’s fundamental business activities and should not be considered in isolation or as a substitute for net income, income from operations, cash flows from operating activities, or other GAAP measures. A table reconciling EBITDA, as adjusted, and distributable cash flow with appropriate GAAP financial measures is included in the summarized financial information included in this release.
Energy Transfer Partners, L.P. (NYSE:ETP)is a publicly traded partnership owning and operating a diversified portfolio of energy assets. ETP has pipeline operations in Arizona, Colorado, Louisiana, New Mexico, and Utah, and owns the largest intrastate pipeline system in Texas. ETP’s natural gas operations include intrastate gathering and transportation pipelines, treating and processing assets, and three storage facilities located in Texas. ETP currently has more than 17,500 miles of pipeline in service and has a 50% interest in joint ventures that have approximately 500 miles of interstate pipeline in service. ETP is also one of the three largest retail marketers of propane in the United States, serving more than one million customers across the country.
Energy Transfer Equity, L.P. (NYSE:ETE)is a publicly traded partnership, which owns the general partner of Energy Transfer Partners and approximately 62.5 million ETP limited partner units.
The information contained in this press release is available on the Partnership’s website atwww.energytransfer.com.
Contacts
Investor Relations:
Energy Transfer
Brent Ratliff
214-981-0700 (office)
Investor Relations:
Energy Transfer
Brent Ratliff
214-981-0700 (office)
Media Relations:
Vicki Granado
Granado Communications Group
214-504-2260 (office)
214-498-9272 (cell)
Vicki Granado
Granado Communications Group
214-504-2260 (office)
214-498-9272 (cell)
-more-
ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
(unaudited)
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
(unaudited)
| December 31, | December 31, | |||||||
| 2009 | 2008 | |||||||
ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 68,183 | $ | 91,902 | ||||
| Marketable securities | 6,055 | 5,915 | ||||||
| Accounts receivable, net of allowance for doubtful accounts | 566,522 | 591,257 | ||||||
| Accounts receivable from related companies | 57,369 | 17,895 | ||||||
| Inventories | 389,954 | 272,348 | ||||||
| Exchanges receivable | 23,136 | 45,209 | ||||||
| Price risk management assets | 12,371 | 5,423 | ||||||
| Other current assets | 148,373 | 153,452 | ||||||
| Total current assets | 1,271,963 | 1,183,401 | ||||||
| PROPERTY, PLANT AND EQUIPMENT | 8,670,247 | 8,296,085 | ||||||
| ADVANCES TO AND INVESTMENTS IN AFFILIATES | 663,298 | 10,110 | ||||||
| GOODWILL | 745,505 | 743,694 | ||||||
| INTANGIBLES AND OTHER ASSETS, net | 383,959 | 394,199 | ||||||
| Total assets | $ | 11,734,972 | $ | 10,627,489 | ||||
ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
(unaudited)
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
(unaudited)
| December 31, | December 31, | |||||||
| 2009 | 2008 | |||||||
| LIABILITIES AND PARTNERS’ CAPITAL | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 358,997 | $ | 381,135 | ||||
| Accounts payable to related companies | 38,842 | 34,547 | ||||||
| Exchanges payable | 19,203 | 54,636 | ||||||
| Price risk management liabilities | 442 | 94,978 | ||||||
| Interest payable | 136,222 | 106,259 | ||||||
| Accrued and other current liabilities | 228,946 | 433,794 | ||||||
| Current maturities of long-term debt | 40,887 | 45,198 | ||||||
| Total current liabilities | 823,539 | 1,150,547 | ||||||
| LONG-TERM DEBT, less current maturities | 6,176,918 | 5,618,549 | ||||||
| DEFERRED INCOME TAXES | 112,997 | 100,597 | ||||||
| OTHER NON-CURRENT LIABILITIES | 21,810 | 14,727 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| 7,135,264 | 6,884,420 | |||||||
| PARTNERS’ CAPITAL: | ||||||||
| General Partner | 174,884 | 161,159 | ||||||
| Limited Partners: | ||||||||
| Common Unitholders (179,274,747 and 152,102,471 units authorized, issued and outstanding at December 31, 2009 and 2008, respectively) | 4,418,017 | 3,578,997 | ||||||
| Class E Unitholders (8,853,832 units authorized, issued and outstanding — held by subsidiary and reported as treasury units) | — | — | ||||||
| Accumulated other comprehensive income (loss) | 6,807 | 2,913 | ||||||
| Total partners’ capital | 4,599,708 | 3,743,069 | ||||||
| Total liabilities and partners’ capital | $ | 11,734,972 | $ | 10,627,489 | ||||
ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per unit and unit data)
(unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per unit and unit data)
(unaudited)
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| REVENUES: | ||||||||||||||||
| Natural gas operations | $ | 1,111,643 | $ | 1,331,086 | $ | 4,115,806 | $ | 7,653,156 | ||||||||
| Retail propane | 360,623 | 428,182 | 1,190,524 | 1,514,599 | ||||||||||||
| Other | 33,516 | 35,538 | 110,965 | 126,113 | ||||||||||||
| Total revenues | 1,505,782 | 1,794,806 | 5,417,295 | 9,293,868 | ||||||||||||
| COSTS AND EXPENSES: | ||||||||||||||||
| Cost of products sold — natural gas operations | 653,661 | 920,837 | 2,519,575 | 5,885,982 | ||||||||||||
| Cost of products sold — retail propane | 196,330 | 269,752 | 574,854 | 1,014,068 | ||||||||||||
| Cost of products sold — other | 8,785 | 10,247 | 27,627 | 38,030 | ||||||||||||
| Operating expenses | 163,556 | 208,225 | 680,893 | 781,831 | ||||||||||||
| Depreciation and amortization | 82,342 | 70,394 | 312,803 | 262,151 | ||||||||||||
| Selling, general and administrative | 30,921 | 57,595 | 173,936 | 194,227 | ||||||||||||
| Total costs and expenses | 1,135,595 | 1,537,050 | 4,289,688 | 8,176,289 | ||||||||||||
| OPERATING INCOME | 370,187 | 257,756 | 1,127,607 | 1,117,579 | ||||||||||||
| OTHER INCOME (EXPENSE): | ||||||||||||||||
| Interest expense, net of interest capitalized | (110,046 | ) | (73,944 | ) | (394,274 | ) | (265,701 | ) | ||||||||
| Equity in earnings (losses) of affiliates | 8,846 | 584 | 20,597 | (165 | ) | |||||||||||
| Losses on disposal of assets | (231 | ) | (2,887 | ) | (1,564 | ) | (1,303 | ) | ||||||||
| Gains (losses) on non-hedged interest rate derivatives | 6,912 | (51,138 | ) | 39,239 | (50,989 | ) | ||||||||||
| Allowance for equity funds used during construction | (8,061 | ) | 18,701 | 10,557 | 63,976 | |||||||||||
| Other, net | (2,243 | ) | (180 | ) | 2,157 | 9,306 | ||||||||||
| INCOME BEFORE INCOME TAX EXPENSE (BENEFIT) | 265,364 | 148,892 | 804,319 | 872,703 | ||||||||||||
| Income tax expense (benefit) | 4,183 | (2,074 | ) | 12,777 | 6,680 | |||||||||||
| NET INCOME | 261,181 | 150,966 | 791,542 | 866,023 | ||||||||||||
| GENERAL PARTNER’S INTEREST IN NET INCOME | 98,966 | 82,297 | 365,362 | 315,896 | ||||||||||||
| LIMITED PARTNERS’ INTEREST IN NET INCOME | $ | 162,215 | $ | 68,669 | $ | 426,180 | $ | 550,127 | ||||||||
| BASIC NET INCOME PER LIMITED PARTNER UNIT (1) | $ | 0.92 | $ | 0.45 | $ | 2.53 | $ | 3.74 | ||||||||
| BASIC AVERAGE NUMBER OF UNITS OUTSTANDING | 176,695,318 | 151,967,607 | 167,337,192 | 146,871,261 | ||||||||||||
| DILUTED NET INCOME PER LIMITED PARTNER UNIT (1) | $ | 0.91 | $ | 0.45 | $ | 2.53 | $ | 3.74 | ||||||||
| DILUTED AVERAGE NUMBER OF UNITS OUTSTANDING | 177,217,552 | 151,967,607 | 167,768,981 | 147,090,608 | ||||||||||||
| (1) | Basic and diluted net income per limited partner unit amounts for the three and twelve months ended December 31, 2008 have been restated to reflect the retrospective adoption of certain accounting principles on January 1, 2009. See our annual report on Form 10-K for the year ended December 31, 2008 for a more detailed discussion. |
SUPPLEMENTAL INFORMATION: (unaudited)
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Reconciliation of net income to EBITDA, as adjusted: | ||||||||||||||||
| Net income | $ | 261,181 | $ | 150,966 | $ | 791,542 | $ | 866,023 | ||||||||
| Interest expense, net of interest capitalized | 110,046 | 73,944 | 394,274 | 265,701 | ||||||||||||
| Income tax expense (benefit) | 4,183 | (2,074 | ) | 12,777 | 6,680 | |||||||||||
| Depreciation and amortization | 82,342 | 70,394 | 312,803 | 262,151 | ||||||||||||
| Non-cash unit-based compensation expense | 3,090 | 9,143 | 24,032 | 23,481 | ||||||||||||
| Losses on disposal of assets | 231 | 2,887 | 1,564 | 1,303 | ||||||||||||
| (Gains) losses on non-hedged interest rate derivatives | (6,912 | ) | 51,138 | (39,239 | ) | 50,989 | ||||||||||
| Allowance for equity funds used during construction | 8,061 | (18,701 | ) | (10,557 | ) | (63,976 | ) | |||||||||
| Proportionate share of joint ventures’ interest, depreciation and allowance for equity funds used during construction | 12,680 | — | 22,331 | — | ||||||||||||
| Other, net | 2,243 | 180 | (2,157 | ) | (9,306 | ) | ||||||||||
| EBITDA, as adjusted (a) | $ | 477,145 | $ | 337,877 | $ | 1,507,370 | $ | 1,403,046 | ||||||||
Reconciliation of net income to distributable cash flow: | ||||||||||||||||
| Net income | $ | 261,181 | $ | 150,966 | $ | 791,542 | $ | 866,023 | ||||||||
| Amortization of finance costs charged to interest | 2,259 | 1,646 | 8,645 | 5,886 | ||||||||||||
| Deferred income taxes | 8,303 | (1,499 | ) | 11,966 | (5,280 | ) | ||||||||||
| Depreciation and amortization | 82,342 | 70,394 | 312,803 | 262,151 | ||||||||||||
| Non-cash unit-based compensation expense | 3,090 | 9,143 | 24,032 | 23,481 | ||||||||||||
| Losses on disposal of assets | 231 | 2,887 | 1,564 | 1,303 | ||||||||||||
| Unrealized (gains) losses on interest rate derivatives | (19,316 | ) | 51,138 | (51,643 | ) | 50,989 | ||||||||||
| Allowance for equity funds used during construction | 8,061 | (18,701 | ) | (10,557 | ) | (63,976 | ) | |||||||||
| Unrealized (gains) losses on commodity derivatives not in fair value hedging relationships (including ineffective portion of cash flow hedges) | (14,028 | ) | (41,366 | ) | 18,629 | (35,528 | ) | |||||||||
| Unrealized gains on commodity derivatives and related hedged inventory in fair value hedging relationships | (52,471 | ) | — | (48,608 | ) | — | ||||||||||
| Inventory lower of cost or market adjustments | — | 69,512 | 54,029 | 69,512 | ||||||||||||
| Effect of previously recognized inventory hedging and lower of cost or market adjustments on margin | (27,292 | ) | — | (50,843 | ) | — | ||||||||||
| Goodwill impairment loss | — | 11,359 | — | 11,359 | ||||||||||||
| Distributions in excess of equity in earnings, net | 8,920 | 898 | 3,224 | 5,621 | ||||||||||||
| Maintenance capital expenditures | (30,886 | ) | (65,035 | ) | (102,652 | ) | (140,966 | ) | ||||||||
| Distributable cash flow (a) | $ | 230,394 | $ | 241,342 | $ | 962,131 | $ | 1,050,575 | ||||||||
| (a) | The Partnership has disclosed in this press release EBITDA, as adjusted, and distributable cash flow, which are non-GAAP financial measures. Management believes EBITDA, as adjusted, and distributable cash flow provide useful information to investors as measure of comparison with peer companies, including companies that may have different financing and capital structures. The presentation of EBITDA, as adjusted, and distributable cash flow also allows investors to view our performance in a manner similar to the methods used by management and provides additional insight into our operating results. |
There are material limitations to using measures such as EBITDA, as adjusted, and distributable cash flow, including the difficulty associated with using either as the sole measure to compare the results of one company to another, and the inability to analyze certain significant items that directly affect a company’s net income or loss or cash flows. In addition, our calculations of EBITDA, as adjusted, and distributable cash flow may not be consistent with similarly titled measures of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP, such as gross margin, operating income, net income, and cash flow from operating activities.
Definition of EBITDA, as Adjusted
The Partnership defines EBITDA, as adjusted, as total partnership earnings before interest, taxes, depreciation, amortization and other non-cash items, such as compensation charges for unit issuances to employees and other expenses. Non-cash compensation expense represents charges for the value of the grants awarded under the Partnership’s compensation plans over the vesting terms of those plans and are charges which do not, or will not, require cash settlement. Non-cash income or loss such as the gain or loss arising from disposal of assets is not included when determining EBITDA, as adjusted.
EBITDA, as adjusted, is used by management to determine our operating performance and, along with other data, as internal measures for setting annual operating budgets, assessing financial performance of our numerous business locations, as a measure for evaluating targeted businesses for acquisition and as a measurement component of incentive compensation.
Definition of Distributable Cash Flow
The Partnership defines distributable cash flow as total partnership earnings, adjusted for certain non-cash amounts recorded in earnings, less maintenance capital expenditures. Non-cash amounts recorded in earnings include depreciation and amortization, deferred taxes, impairment losses, allowance for equity funds used during construction, and certain realized and unrealized gains and losses. Distributable cash flow also reflects earnings from affiliates on a cash basis.
Distributable cash flow is used by management to evaluate our overall performance. Our partnership agreement requires us to distribute all available cash, and distributable cash flow is calculated to evaluate our ability to fund distributions through cash generated by our operations.
REPORTABLE SEGMENTS (unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Intrastate transportation and storage: | ||||||||||||||||
| Natural gas MMBtu/d — transported | 10,726,393 | 13,269,286 | 12,254,168 | 11,187,327 | ||||||||||||
| Natural gas MMBtu/d — sold | 1,235,895 | 876,261 | 969,601 | 1,389,781 | ||||||||||||
| Revenues (including intersegment) | $ | 802,246 | $ | 771,963 | $ | 2,391,544 | $ | 5,634,604 | ||||||||
| Cost of products sold | 497,862 | 501,621 | 1,393,295 | 4,467,552 | ||||||||||||
| Gross margin | 304,384 | 270,342 | 998,249 | 1,167,052 | ||||||||||||
| Operating expenses | 44,345 | 60,489 | 199,806 | 287,515 | ||||||||||||
| Depreciation and amortization | 29,525 | 24,408 | 107,605 | 84,701 | ||||||||||||
| Selling, general and administrative | 14,160 | 21,237 | 64,059 | 76,488 | ||||||||||||
| Segment operating income | $ | 216,354 | $ | 164,208 | $ | 626,779 | $ | 718,348 | ||||||||
Interstate transportation: | ||||||||||||||||
| Natural gas MMBtu/d — transported | 1,529,990 | 1,856,034 | 1,661,785 | 1,777,097 | ||||||||||||
| Natural gas MMBtu/d — sold | 15,714 | 21,319 | 18,531 | 15,162 | ||||||||||||
| Revenues | $ | 66,864 | $ | 67,561 | $ | 270,213 | $ | 244,224 | ||||||||
| Operating expenses | 12,916 | 17,778 | 59,343 | 56,906 | ||||||||||||
| Depreciation and amortization | 12,280 | 9,586 | 48,297 | 37,790 | ||||||||||||
| Selling, general and administrative | 5,190 | 6,935 | 24,340 | 24,852 | ||||||||||||
| Segment operating income | $ | 36,478 | $ | 33,262 | $ | 138,233 | $ | 124,676 | ||||||||
Midstream: | ||||||||||||||||
| Natural gas MMBtu/d — sold | 1,291,251 | 982,207 | 1,080,552 | 1,269,724 | ||||||||||||
| NGLs Bbls/d — sold | 35,266 | 20,635 | 39,064 | 25,939 | ||||||||||||
| Revenues (including intersegment) | $ | 690,694 | $ | 787,053 | $ | 2,441,160 | $ | 5,342,393 | ||||||||
| Cost of products sold | 606,249 | 714,707 | 2,116,279 | 4,986,495 | ||||||||||||
| Gross margin | 84,445 | 72,346 | 324,881 | 355,898 | ||||||||||||
| Operating expenses | 18,131 | 32,080 | 68,989 | 82,872 | ||||||||||||
| Depreciation and amortization | 19,053 | 15,340 | 70,845 | 59,344 | ||||||||||||
| Selling, general and administrative | 3,132 | 16,029 | 44,315 | 47,268 | ||||||||||||
| Segment operating income | $ | 44,129 | $ | 8,897 | $ | 140,732 | $ | 166,414 | ||||||||
Retail propane and other retail propane related: | �� | |||||||||||||||
| Retail propane gallons (in thousands) | 170,113 | 179,025 | 568,315 | 601,134 | ||||||||||||
| Retail propane revenues | $ | 360,622 | $ | 428,182 | $ | 1,190,523 | $ | 1,514,599 | ||||||||
| Other retail propane related revenues | 29,490 | 32,887 | 102,060 | 109,411 | ||||||||||||
| Retail propane cost of products sold | 196,330 | 269,752 | 574,854 | 1,014,068 | ||||||||||||
| Other retail propane related cost of products sold | 6,653 | 7,555 | 21,148 | 24,654 | ||||||||||||
| Gross margin | 187,129 | 183,762 | 696,581 | 585,288 | ||||||||||||
| Operating expenses | 82,167 | 97,087 | 341,935 | 350,280 | ||||||||||||
| Depreciation and amortization | 19,999 | 20,889 | 83,476 | 79,717 | ||||||||||||
| Selling, general and administrative | 7,813 | 12,927 | 41,941 | 40,727 | ||||||||||||
| Segment operating income (loss) | $ | 77,150 | $ | 52,859 | $ | 229,229 | $ | 114,564 | ||||||||
| All other | $ | (3,855 | ) | $ | (1,003 | ) | $ | (8,658 | ) | $ | (1,531 | ) | ||||
| Selling, general and administrative expenses not allocated to segments | (69 | ) | (467 | ) | 1,292 | (4,892 | ) | |||||||||
| Total operating income | $ | 370,187 | $ | 257,756 | $ | 1,127,607 | $ | 1,117,579 | ||||||||
Other items not allocated by segment: | ||||||||||||||||
| Interest expense, net of interest capitalized | $ | (110,046 | ) | $ | (73,944 | ) | $ | (394,274 | ) | $ | (265,701 | ) | ||||
| Equity in earnings (losses) of affiliates | 8,846 | 584 | 20,597 | (165 | ) | |||||||||||
| Gains (losses) on disposal of assets | (231 | ) | (2,887 | ) | (1,564 | ) | (1,303 | ) | ||||||||
| Gains (losses) on non-hedged interest rate derivatives | 6,912 | (51,138 | ) | 39,239 | (50,989 | ) | ||||||||||
| Allowance for equity funds used during construction | (8,061 | ) | 18,701 | 10,557 | 63,976 | |||||||||||
| Other, net | (2,243 | ) | (180 | ) | 2,157 | 9,306 | ||||||||||
| Income tax expense | (4,183 | ) | 2,074 | (12,777 | ) | (6,680 | ) | |||||||||
| (109,006 | ) | (106,790 | ) | (336,065 | ) | (251,556 | ) | |||||||||
| Net income | $ | 261,181 | $ | 150,966 | $ | 791,542 | $ | 866,023 | ||||||||