 November 2006 November 2006 New York Society of Security Analysts New York Society of Security Analysts New York Society of Security Analysts Energy Industry Investor Conference Energy Industry Investor Conference Energy Industry Investor Conference Energy Transfer Equity, L.P. Energy Transfer Equity, L.P. Energy Transfer Partners, L.P. Energy Transfer Partners, L.P. Exhibit 99.1 |
  2 The statements made by representatives of Energy Transfer Partners (ETP) or Energy Transfer Equity (ETE) during the course of this presentation that are not historical facts are forward- looking statements. Although the assumptions underlying these statements are believed to be reasonable, investors are cautioned that such forward-looking statements are inherently uncertain and necessarily involve risks that may affect the business prospects and performance of ETP and ETE, causing actual results to differ from those discussed during this presentation. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in the prospectus. Any forward-looking statements made are subject to all of the risks and uncertainties, many of which are beyond management’s control, involved in the transportation, gathering, compression, treating, processing, storage and marketing of natural gas and in the propane business. These risks include the risks described in the prospectus. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the actual results and plans of ETP and ETE could differ materially from those anticipated, estimated, projected or expected. ETP and ETE undertake no obligation to publicly update any forward-looking statements, whether as a result of new information or future events. Legal Disclaimer Legal Disclaimer |
  3 ETP Corporate Structure Public Unitholders Energy Transfer Equity, L.P. Energy Transfer Partners, L.P. 136,712,668 Units Outstanding 54.3% Limited Partner Interest La Grange Acquisition, L.P Natural Gas Midstream Operations Heritage Operating, L.P. Propane Operations 50% CCE Holdings 100% Incentive Distribution Rights 45.7% Limited Partner Interest 2% General Partner Interest Titan Propane, L.P. |
  4 Asset Profile A diversified midstream and propane MLP: 3rd largest MLP in the U.S. (based on market cap) Largest intrastate pipeline system in U.S. with interconnects to major consumption areas throughout U.S. Significant strategically located natural gas storage capacity Third largest retail propane marketer in the United States with concentration in highest population growth areas Annual Revenue (LTM 5/31/06) $8.1 B Total Assets (5/31/06) $4.6 B Enterprise Value (1) $8.26 B Equity Market Cap. (1) $6.76 B Units Outstanding (8/31/06) 136,712,668 EBITDA (Fiscal 2006) $730 million (2) ETP Financial Summary (1) Unit price as of August 30, 2006 &total debt as of 5/31/06; excludes value of GP and ETE. (2) Public guidance. (3) Based on ETP annual distribution of $3.00/ unit ETE Financial Summary Annual EBITDA (3) $397 million Current Annual DCF/ Unit $1.25 Enterprise Value (1) $4.2 B Equity Market Cap. (1) $3.6 B Units Outstanding (8/31/06) 124,360,520 |
  5 Investment Highlights Substantial competitive advantage High quality portfolio of assets Strong credit statistics Compares favorably with BBB+ / BBB peers Management commitment to credit quality High common unit coverage ETP retains cash to fund internal growth and strengthen balance sheet Low risk, high rate of return growth opportunities Attractive construction price to EBITDA multiples Long-term contracts in place prior to construction Excellent access to public debt and equity markets Significant liquidity History of consistent distribution growth Experienced management with substantial equity ownership |
  6 Energy Transfer Midstream System Largest US Intrastate Natural Gas System 12,000 miles of natural gas pipeline 7.6 Bcf/d capacity 78 Bcf Storage (working space) 14 natural gas treating facilities 355 MMcf/d natural gas processing capacity Geographic Footprint 5 Market Hubs 5 Producing Regions >10 Interstate Pipeline Connections |
  7 Transwestern Acquisition Rationale ETP recently announced its intention to acquire Transwestern for total consideration of $1.465 billion. The Acquisition provides the following benefits: FERC-regulated asset that diversifies ETP’s asset base outside of Texas Source of stable, fee-based revenue Identified expansion projects provide potential for increased cash flow with favorable economics New Phoenix lateral Complete San Juan loop Provides greater optionality for producers connected to Transwestern by providing access to Texas and west coast markets Provides additional sources of supply to existing customers on ETP’s Oasis and North Texas Pipelines |
  8 TEXAS OKLAHOMA COLORADO NEW MEXICO ARIZONA UTAH NEVADA CALIFORNIA Ignacio Blanco Hub Thoreau Needles Topock 2 5 6 Station 9 SAN JUAN ROCKIES PERMIAN ANADARKO 3 1 4 Mainline 1 West 1,210 MM/d 2 Bi-directional East 650 MM/d & West 750 MM/d San Juan Lateral 3 Ignacio to Blanco 476 MM/d 4 Blanco to Thoreau 1,235 MM/d East Laterals (Bi-directional) 5 West Texas North 585 MM/d, South 550 MM/d 6 Panhandle North 235 MM/d, South 263 MM/d Transwestern Asset Description |
  9 ETP’s Contiguous Footprint Expands |
  10 New Phoenix Lateral: 260 miles of 36” pipe connects Phoenix to TW’s existing mainline at Ash Fork, AZ 500 MMcf/d of new pipeline capacity Projected in-service date April 30, 2008 Upstream Segments: Complete San Juan loop 26 miles, 36” pipe 375 MMcf/day of additional capacity from Blanco 1 2 3 4 5 7 8 9 Delivery Points: 1-Prescott (UNS), 2-SWGas, 3-APS Red Hawk, 4-Duke Arlington Valley, 5-Sempra Mesquite, 6-Gila Bend, 7-SRP Desert Basin, 8-APS Sundance, 9-SRP Santan Lateral Delivery Points: 1-Prescott (UNS), 2-SWGas, 3-APS Red Hawk, 4-Duke Arlington Valley, 5-Sempra Mesquite, 6-Gila Bend, 7-SRP Desert Basin, 8-APS Sundance, 9-SRP Santan Lateral Transwestern – Growth Opportunities |
  11 Transwestern Acquisition Financing Negotiated transaction, no auction $1.465 billion purchase price 2 Step transaction Step 1 – Purchased GE’s 50% ownership in CCE Holdings for $1 billion, less $25 million distribution with the completion of Step 2 CCE Holdings = Transwestern Pipeline + 50% of Citrus Corp. (Florida Gas Transmission) Step 2 – Exchange 50% ownership in CCE Holdings + $490 million in cash/debt assumption for 100% ownership in Transwestern Pipeline LLC purchase – full tax basis step-up |
  12 Competitive Advantages Texas Infrastructure Multiple Market Options for Producers Strong Position in Active Supply Basins Operating Expertise Producer Relationships Substantial Organic Growth Opportunities Bypass Capability at Processing Plants |
  13 Project Update Provides 2.3 Bcf/d additional outlet capacity to Fort Worth Basin and East Texas producers Links high growth production with major market hubs and multiple interstate interconnects across Texas Provides accretive returns on significant capital spending Backed by long-term contracts with investment grade counterparties |
  14 Project Update Approximately 547 miles of intrastate expansion 42”, 36” & 30” Pipeline Expansion New Additions South Loop to Beaumont, TX North Loop to Paris, TX Approximately $1.4 billion total capital spending Reed to Texoma section placed in service and flowing gas as of 8/31/2006 |
  15 Projects under Construction Two 24-inch and 36-inch pipeline extensions 42-inch Pipeline – Phase II and III Silsbee 42-inch Loop – 160 miles 36-inch Northside to Paris Loop – 130 miles 320 MMcf/day Processing Plant – Johnson Cty |
  16 Processing Plants – Johnson County ETP is installing processing plants in Johnson County Capacity 320,000 Mcf/day Installation in steps – 130,000 Mcf/day completed by October 2006 Installation of additional 190,000 Mcf/day of capacity is estimated to be completed by June 2007 Estimated $65 million in construction cost Contracts structured primarily as fee-based revenue |
  17 No active Legend. Propane Operations ETP’s propane operations are concentrated in higher than average population growth areas where natural gas distribution may not be cost effective, and its geographic diversification minimizes the impact of weather patterns in individual regions. Fee-based, pass-through business, subject to weather volatility that impacts volumes Focus on higher-margin residential customers Record fiscal 2004 and 2005 operating and financial performance Realized 1%-3% internal growth excluding acquisitions Trend of increasing margins due to higher vehicle fuel costs, steel costs, benefit, and insurance cost Assets owned Purchase land, buildings and vehicles 90% of customer tanks Retail Gallons Sold (Millions) 126 147 160 181 330 330 376 398 406 0 50 100 150 200 250 300 350 400 450 |
  18 No active Legend. Updated Propane Operations Map Energy Transfer Titan |
  19 ETP Credit Statistics (5/31/2006) Outstanding Debt (5/31/2006) $1.5 billion (excluding working capital) 2006E EBITDA $730 million 2006E Interest Exp. $110 million Debt/ EBITDA 2.06 X EBITDA/ Interest 6.64 X * Based on current ETP distribution annualized * Based on current ETP distribution annualized |
  20 Historical Returns vs. Peers 5-Year Average Annual Total Return 8/29/01 - 8/29/06 Source: FactSet Note: 1 BWP, BPL, EEP, ETP, EPD, KMP, MMP, OKS, PPX, PAA, SXL, TPP, and VLI 28.1% 14.5% (9.0%) 2.6% (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% ETP Large Cap MLP Average¹ Dow Jones S&P 500 |
  21 ETP Distribution History $1.30 $1.40 $1.50 $1.65 $1.75 $1.85 $1.95 $2.00 $2.20 $2.35 $2.55 $3.00 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 |
  22 Distribution History vs. Peers 2-Year Average Annual Distribution Growth 8/29/01 - 8/29/06 30% 15% 14% 12% 10% 9% 8% 7% 7% 5% 1% 0% 0% 5% 10% 15% 20% 25% 30% 35% ETP SXL MMP PAA EPD OKS PPX BPL KMP VLI TPP EEP |
  23 Distribution History vs. Peers Average Annual Distribution Growth Note: 1 Includes BWP, BPL, EEP, ETP, EPD, KMP, MMP, OKS, PPX, PAA, SXL, TPP, and VLI 26.0% 30.4% 30.8% 6.5% 7.3% 7.6% 0% 5% 10% 15% 20% 25% 30% 35% 3 Yr CAGR (8/29/03-8/29/06) 2 Yr CAGR (8/29/04-8/29/06) 1 Yr CAGR (8/29/05-8/29/06) ETP Large Cap MLP Average¹ |
  24 Investment Highlights Substantial competitive advantage High quality portfolio of assets Strong credit statistics Compares favorably with BBB+ / BBB peers Management commitment to credit quality High common unit coverage ETP retains cash to fund internal growth and strengthen balance sheet Low risk, high rate of return growth opportunities Attractive construction price to EBITDA multiples Long-term contracts in place prior to construction Excellent access to public debt and equity markets Significant liquidity History of consistent distribution growth Experienced management with substantial equity ownership |