Energy Transfer 8-K Regulation FD Disclosure

2006 MLP Conference

2006 MLP Conference

2006 MLP Conference

Energy Transfer Partners , L.P.

Energy Transfer Partners , L.P.

Energy Transfer Partners , L.P.

March 2006

Exhibit 99.1

2

Legal Disclaimer

This

presentation

may

contain

statements

about

future

events

and

Energy

Transfer

Partners,

L.P.’s

(“Energy

Transfer”,

the

“Partnership”

or

“ETP”)

outlook

and

expectations,

which

are

forward-looking

statements.

Any

statement

in

this

presentation

that

is

not

a

historical

fact

may

be

deemed

to

be

a

forward-looking

statement.

These

forward-looking

statements

rely

on

a

number

of

assumptions

concerning

future

events

and

are

subject

to

a

number

of

uncertainties

and

factors,

many

of

which

are

outside

Energy

Transfer’s

control,

and

which

could

cause

Energy

Transfer’s

actual

results,

performance

or

achievements

to

be

materially

different.

While

Energy

Transfer

believes

that

the

assumptions

concerning

future

events

are

reasonable,

it

cautions

that

there

are

inherent

difficulties

in

predicting

certain

important

factors

that

could

impact

the

future

performance

or

results

of

its

business.

These

risks

and

uncertainties

are

discussed

in

more

detail

in

Energy

Transfer’s

filings

with

the

Securities

and

Exchange

Commission,

copies

of

which

are

available

to

the

public.

Energy

Transfer

expressly

disclaims

any

intention

or

obligation

to

revise

or

update

any

forward-

looking

statements

whether

as

a

result

of

new

information,

future

events,

or

otherwise.

3

Management Team

Management Team

President, Chief Financial Officer and

President, Chief Financial Officer and

Director

Director

H. Michael Krimbill

H. Michael Krimbill

Co-Chief Executive Officer and Co-

Co-Chief Executive Officer and Co-

Chairman of the Board

Chairman of the Board

Kelcy

Kelcy

L. Warren

L. Warren

Co-Chief Executive Officer and Co-

Co-Chief Executive Officer and Co-

Chairman of the Board

Chairman of the Board

Ray C. Davis

Ray C. Davis

4

Investment Highlights

Investment Highlights

Strong asset profile

Strong asset profile

Demonstrated asset growth

Demonstrated asset growth

History of consistent distribution growth

History of consistent distribution growth

Substantial internal growth projects

Substantial internal growth projects

–

–

Over $800 million of capital expenditures expected for 2006/ 2007

Over $800 million of capital expenditures expected for 2006/ 2007

–

–

Expected high rates of return, low projected construction cost relative

Expected high rates of return, low projected construction cost relative

to forecasted EBITDA

to forecasted EBITDA

High quality portfolio of low volatility assets

High quality portfolio of low volatility assets

–

–

Predominantly fee-based business, which mitigates commodity price

Predominantly fee-based business, which mitigates commodity price

risk

risk

Strong Balance Sheet

Strong Balance Sheet

Significant ownership by management and affiliates

Significant ownership by management and affiliates

5

Strong Track Record of Distribution Growth at ETP

Strong Track Record of Distribution Growth at ETP

Source:   Company Reports

Notes:

(1)

Large Cap MLP Average is comprised of BWP, BPL, EEP, ETP, EPD, KMP, MMP, NBP, PPX, PAA, SXL, TPP, and VLI.

(2)

Distribution growth based on annualized indicated quarterly distribution between specified dates

5 Year Average Annual Total Return

01/03/01 –

01/24/06

Average Annual Distribution Growth²

Source:   Factset

Historical Returns to Investors

Historical Returns to Investors

19.9%

30.1%

25.7%

8.2%

9.3%

9.8%

0.0%

10.0%

20.0%

30.0%

40.0%

3-Yr CAGR

(01/01/03 - 01/22/06)

2-Yr CAGR

(01/01/04 - 01/22/06)

1-Yr CAGR

(01/01/05 - 01/22/06)

ETP

Large Cap MLP Average

35.2%

19.5%

0.1%

(1.5%)

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

ETP

Large Cap MLP Average¹

Dow Jones

S&P 500

6

Substantial Management Ownership

Substantial Management Ownership

Notes:

(1)

Held indirectly through ownership of general partner of Energy Transfer Partners GP, L.P.

(2)

Held indirectly through ownership of 50% of the Class B limited partner interests in Energy Transfer Partners GP, L.P.

(3)

Held directly

Management

and Affiliates

Management

and Affiliates

Public Unitholders

Public Unitholders

Other

Investors

Other

Investors

LE GP, LLC

Energy Transfer

Partners, L.P.

(NYSE: ETP)

Public

Unitholders

73.8% Limited

Partner Interest

73.8% Limited

Partner Interest

0.5% General

Partner Interest

0.5% General

Partner Interest

12.8% Limited

Partner Interest

12.8% Limited

Partner Interest

12.9% Limited

Partner Interest

12.9% Limited

Partner Interest

50% Incentive

Distribution Rights ²

2% General

Partner Interest ¹

32.3% Limited

Partner Interest ³

65.7% Limited

Partner Interest

(NYSE: ETE)

Energy Transfer

Equity, L.P.

(NYSE: ETE)

ETP Business Overview

ETP Business Overview

8

ETP Overview

ETP Overview

Natural Gas Midstream Operations

Natural Gas Midstream Operations

Represents approximately 78% of fiscal year 2006 projected ETP EBITDA

Represents approximately 78% of fiscal year 2006 projected ETP EBITDA

12,000 miles of natural gas gathering and transportation pipelines

12,000 miles of natural gas gathering and transportation pipelines

7.6 Bcf/d

7.6 Bcf/d

aggregate throughput capacity

aggregate throughput capacity

3

3

storage

storage

facilities

facilities

with

with

approximately

approximately

80

80

Bcf

Bcf

working

working

storage

storage

capacity

capacity

3 natural gas processing plants and 14 natural gas treating facilities

3 natural gas processing plants and 14 natural gas treating facilities

Integrated Texas intrastate natural gas pipeline system with access to all

Integrated Texas intrastate natural gas pipeline system with access to all

significant producing regions and major market hubs in Texas

significant producing regions and major market hubs in Texas

Propane Operations

Propane Operations

Represents approximately 22% of fiscal year 2006 projected ETP EBITDA

Represents approximately 22% of fiscal year 2006 projected ETP EBITDA

Serves

Serves

more

more

than

than

700,000

700,000

customers

customers

from

from

321

321

service

service

locations

locations

in

in

34

34

states

states

One of the five largest retail propane marketers in the United States

One of the five largest retail propane marketers in the United States

Concentration in higher-than-average population growth areas

Concentration in higher-than-average population growth areas

9

ETP Midstream Operations

ETP Midstream Operations

ET Fuel (TUFCO) System

ET Fuel (TUFCO) System

Capacity of 1.8 Bcf/d

2,000 miles of pipeline

2

Storage

Facilities

with

14

Bcf

of

total working capacity

East Texas

East Texas

(Bossier) Pipeline

(Bossier) Pipeline

Current capacity of 675 MMcf/d

10-year agreement with XTO Energy

Houston Pipeline

Houston Pipeline

(HPL) System

(HPL) System

Capacity of 2.4 Bcf/d

4,200 miles of pipeline

170

MMcf/d

treating

capacity

Bammel

Storage –

130 Bcf

capacity

Oasis Pipeline

Oasis Pipeline

Capacity of 1.2 Bcf/d

583 miles of pipeline

Connects

Waha

to

Katy

Contracts with independent power

plants, utilities and industrial users

Southeast Texas System

Southeast Texas System

4,200 miles of pipeline

1active

processing

plant

with

aggregate

capacity

of

240

MMcf/d

10 natural gas treating facilities with aggregate

capacity of 810 MMcf/d

Over 2,000 connected wells

10

Diversified Propane Operations

Diversified Propane Operations

Retail Gallons Sold (Millions)

Retail Gallons Sold (Millions)

ETP’s

propane operations are concentrated in higher-than-average population growth areas.  Its

geographic diversity minimizes the impact of warm weather patterns in individual regions.

Fee-based business, subject to weather volatility that

impacts volumes

Focus on higher-margin residential customers

Record fiscal 2004 and 2005 operating and financial

performance

Realized 2%-3% internal growth excluding

acquisitions

Consistent acquisition activity at attractive multiples

126

147

160

181

330

330

376

398

406

0

50

100

150

200

250

300

350

400

450

11

ETP Recent Acquisition &

ETP Recent Acquisition &

Internal Growth Activity

Internal Growth Activity

October

2002

–

Energy

Transfer

purchased

Texas

and

Oklahoma

midstream

assets

and

50%

of

Oasis

Pipeline

from

Aquila

Corp.

December

2002

–

Energy

Transfer

purchased

remaining

50%

interest

in

Oasis

from

DOW

January

2004

–

Energy

Transfer

completed

reverse

merger

with

Heritage

Propane

Partners

(NYSE:

HPG)

March

2004

–

Heritage

Propane

Partners

renamed

Energy

Transfer

Partners

(NYSE:ETP)

June

2004

–

ETP

purchased

TUFCO

pipeline

system

from

TXU

Corp.

for

$500

mm

June

2004

–

ETP

completes

East

Texas

(Bossier)

Pipeline

Expansion

November

2004

–

ETP

Purchased

Devon’s

Austin

Chalk

midstream

assets

for

$64

mm

January

2005

–

ETP

purchased

Houston

Pipeline

Company

from

AEP

for

$825

mm

January

2005

–

ETP

announced

joint

venture

with

Atmos

Energy

to

build

North

DFW

Pipeline

May

2005

–

ETP

completes

Fort

Worth

Basin

Pipeline

Project

July

2005

–

ETP

announced

initiation

of

$454

mm

in

capital

projects

–

ETP

announced

upsizing

of

capital

expansion

projects

to

$567

mm

in

October

2005

12

Texas Natural Gas Supply

Texas Natural Gas Supply

13

Supply/Demand

Supply/Demand

14

ETP Organic Growth

ETP Organic Growth

$725 million in Completed or Initiated Organic Growth

$725 million in Completed or Initiated Organic Growth

42”

42”

”

Pipeline Expansion

Pipeline Expansion

$535 million committed

Providing 1.6 Bcf/d

outlet from

FW Basin to multiple markets

Operational in late calendar

year 2006

Fort Worth Basin Pipeline

Fort Worth Basin Pipeline

$87 million invested or committed

Over 80 miles

Provides

multiple

outlets

from

Barnett

Shale

Serves a premier natural gas producing

regions

East Texas (Bossier

East Texas (Bossier

Expansion)

Expansion)

$80 million invested

Provides market outlets for

multiple East Texas producing

basins

North DFW Loop

North DFW Loop

JV with Atmos

Energy

$27 million invested

45 miles of 30”

pipeline

15

Ft. Worth Basin Expansion

Ft. Worth Basin Expansion

Fort Worth Basin Pipeline

Fort Worth Basin Pipeline

Over 55 miles of 24”

Pipeline

Access to the Heart of Barnett Shale

One Section Already Looped

ETP and ATMOS Joint Venture

ETP and ATMOS Joint Venture

30-inch, 45 mile North Ft. Worth Loop

Capacity of 500 MMcf/d

Outlet for Barnett Shale gas to Multiple Hubs

16

ETP Pipeline Expansion

ETP Pipeline Expansion

230 miles of 42-inch and 35 miles of

30-inch intrastate pipelines

12-18

month

construction

period

-

Total

cost

estimate

of

$535

million

Adds significant incremental, fee-based

EBITDA

Provides producers with firm capacity

out of the Barnett Shale and other major

producing areas to all major market

hubs in Texas and numerous interstate

pipelines

Provides LNG customers alternative

outlets across Texas and to other

delivery points

Pipeline

Expansion

Allows

ETP

to

Offer

Integrated

Transportation

Across

Its

Systems

in

Texas

and

Provides

Producers

with

Firm

Capacity

Out

of

the

Barnett

Shale

Financial Overview

Financial Overview

18

ETP Capitalization

ETP Capitalization

ETP Capitalization

as of February 28, 2006

($ in thousands)

Working Capital Facilities

121,000

$       

Senior Notes

1,150,000

Private Placement Notes

293,000

Other

17,000

Total Debt

1,581,000

$    

Estimated Partners Capital

1,505,000

$    

Total Capitalization

3,086,000

$    

EBITDA Guidance

650,000

$       

Credit Statistics

Total Debt/ EBITDA

2.43 X

Total Debt (excluding working cap)/ EBITDA

2.25 X

Total Debt/ Total Capitalization

51.2%

EBITDA/ Interest Expense

5.65 X

19

ETP Distribution History

ETP Distribution History

Strong Track Record of Distribution Growth at ETP

Strong Track Record of Distribution Growth at ETP

$1.40

$1.50

$1.65

$1.75

$1.85

$2.00

$2.35

$2.20

$1.95

$1.28

$1.30

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

$2.40

Date Declared

20

ETP Distribution Coverage

ETP Distribution Coverage

2006 Distributable Cash Flow Coverage*

($ in thousands)

EBITDA

650,000

$      

Less: Interest

(115,000)

Less: Maintenance Capital

(37,000)

Less: Taxes

(7,000)

Distributable Cash Flow

491,000

$      

LP Distributions @ $2.35/ unit

259,970

$      

GP Distributions

98,130

Total Distributions

358,101

$      

Excess Distributable Cash Flow

132,899

$      

Distribution Coverage

1.51

*Based on management guidance

21

Investment Highlights

Investment Highlights

Strong asset profile

Strong asset profile

Demonstrated asset growth

Demonstrated asset growth

History of consistent distribution growth

History of consistent distribution growth

Substantial internal growth projects

Substantial internal growth projects

–

–

Over $800 million of capital expenditures expected for 2006/ 2007

Over $800 million of capital expenditures expected for 2006/ 2007

–

–

Expected high rates of return, low projected construction cost relative

Expected high rates of return, low projected construction cost relative

to forecasted EBITDA

to forecasted EBITDA

High quality portfolio of low volatility assets

High quality portfolio of low volatility assets

–

–

Predominantly fee-based business, which mitigates commodity price

Predominantly fee-based business, which mitigates commodity price

risk

risk

Strong Balance Sheet

Strong Balance Sheet

Significant ownership by management and affiliates

Significant ownership by management and affiliates

Questions & Answers

Questions & Answers