Energy Transfer (ET) 8-K Results of Operations and Financial Condition

Exhibit 99.1

ENERGY TRANSFER EQUITY
REPORTS QUARTERLY RESULTS
FOR THE PERIOD ENDED JUNE 30^TH

Dallas — August 10, 2009—Energy Transfer Equity, L.P. (NYSE:ETE)today reported Distributable Cash of $119.8 million and net income of $141.8 million for the three months ended June 30, 2009. Distributable Cash is a “non-GAAP measure” as explained below.

For the three months ended June 30, 2009, ETE’s Distributable Cash was $119.8 million, an increase of $22.7 million over the three months ended June 30, 2008. For the six months ended June 30, 2009, ETE’s Distributable Cash was $238.9 million, an increase of $42.5 million over the six months ended June 30, 2008. The Partnership’s principal sources of cash flow are distributions it receives from its investments in the limited and general partner interests in Energy Transfer Partners, L.P. (“ETP”). ETE currently has no operating activities apart from those conducted by the operating subsidiaries within ETP. ETE’s principal uses of cash are for distributions to its general and limited partners, expenses and debt service.

ETE’s net income attributable to its partners decreased $16.0 million for the three months ended June 30, 2009 to $104.4 million as compared to $120.4 million for the three months ended June 30, 2008. Net income attributable to its partners increased $8.8 million for the six months ended June 30, 2009 to $255.9 million as compared to $247.1 million for the six months ended June 30, 2008. The decrease between the three month periods is primarily attributable to a decrease in operating income and an increase in interest expense on a consolidated basis, while the increase between the six month periods is due primarily to net unrealized losses on non-hedged interest rate derivatives recorded during the first quarter of 2008.

ETE also announced that it has filed its quarterly report on Form 10-Q for the three months ended June 30, 2009 with the Securities and Exchange Commission. ETE has posted a copy of this Form 10-Q on its website atwww.energytransfer.com. The Partnership has scheduled a conference call for 9:00 a.m. Central Time, Tuesday, August 11, 2009 to discuss the second quarter results. The dial-in number is 1-888-423-3273, participant code: Energy Transfer. The call will be available for replay on the Partnership’s website for a limited time.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include the non-generally accepted accounting principle (“non-GAAP”) financial measure of Distributable Cash. The accompanying schedules provide a reconciliation of this non-GAAP financial measure to its most directly comparable financial measure calculated and presented in accordance with GAAP. The Partnership’s Distributable Cash 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. The Partnership defines Distributable Cash as cash distributions expected to be received from ETP in connection with the Partnership’s investments in limited and general partner interests of ETP, net of the Partnership’s expenditures for general and administrative costs and debt service. Distributable Cash is a significant liquidity measure used by the Partnership’s senior management to compare net cash flows generated by the Partnership’s equity investments in ETP 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 to planned cash distributions.

Distributable Cash is an important non-GAAP financial measure for our limited partners since it indicates to investors whether or not 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 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 measures most directly comparable to Distributable Cash are net income and cash flow from operating activities for ETE on a stand-alone basis (“Parent Company”). The accompanying analysis of Distributable Cash is presented for the three and six months ended June 30, 2009 and 2008 for comparative purposes.

Energy Transfer Equity, L.P.(NYSE:ETE) is a publicly traded partnership, which owns the general partner of Energy Transfer Partners, L.P. and approximately 62.5 million ETP limited partner units.

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 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.

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

Contacts:
Investor Relations:
Brent Ratliff
Energy Transfer
214-981-0700 (office)

Media Relations:
Vicki Granado
Granado Communications Group
214-504-2260 (office)
214-498-9272 (cell)

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ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)

	June 30,		December 31,
	2009		2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	114,361	$	92,023
Marketable securities		9,630		5,915
Accounts receivable, net of allowance for doubtful accounts		388,324		591,257
Accounts receivable from related companies		32,233		15,142
Inventories		187,654		272,348
Deposits paid to vendors		51,987		78,237
Exchanges receivable		27,596		45,209
Price risk management assets		4,272		5,423
Prepaid expenses and other current assets		55,973		75,441
Total current assets		872,030		1,180,995
PROPERTY, PLANT AND EQUIPMENT, net		9,013,750		8,702,534
ADVANCES TO AND INVESTMENTS IN AFFILIATES		374,922		10,110
GOODWILL		764,538		773,283
INTANGIBLES AND OTHER ASSETS, net		410,069		402,980
Total assets	$	11,435,309	$	11,069,902

ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)

	June 30,			December 31,
	2009			2008
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	284,097		$	381,933
Accounts payable to related companies		7,094			34,495
Exchanges payable		22,793			54,636
Customer advances and deposits		73,031			106,679
Accrued and other current liabilities		273,507			313,140
Price risk management liabilities		60,742			142,432
Interest payable		156,154			115,487
Income taxes payable		3,880			14,298
Deferred income taxes		—			589
Current maturities of long-term debt		44,416			45,232
Total current liabilities		925,714			1,208,921
LONG-TERM DEBT, less current maturities		7,265,314			7,190,357
LONG-TERM PRICE RISK MANAGEMENT LIABILITIES		80,487			121,710
DEFERRED INCOME TAXES		203,588			194,871
OTHER NON-CURRENT LIABILITIES		14,571			14,727
COMMITMENTS AND CONTINGENCIES
		8,489,674			8,730,586
EQUITY:
Partners’ Capital (Deficit):
General Partner		373			155
Limited Partners:
Common Unitholders (222,898,248 and 222,829,956 units authorized, issued and outstanding at June 30, 2009 and December 31, 2008, respectively)		54,882			(15,762	)
Accumulated other comprehensive loss		(57,736	)		(67,825	)
Total partners’ deficit		(2,481	)		(83,432	)
Noncontrolling interest		2,948,116			2,422,748
Total equity		2,945,635			2,339,316
Total liabilities and equity	$	11,435,309		$	11,069,902

ENERGY TRANSFER EQUITY, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per unit and unit data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2009			2008			2009			2008
REVENUES:
Natural gas operations	$	948,233		$	2,375,637		$	2,060,188		$	4,383,484
Retail propane		179,770			249,449			667,677			847,587
Other		23,687			28,265			53,799			61,525
Total revenues		1,151,690			2,653,351			2,781,664			5,292,596
COSTS AND EXPENSES:
Cost of products sold — natural gas operations		542,004			1,952,569			1,274,117			3,529,837
Cost of products sold — retail propane		78,070			163,962			298,292			556,517
Cost of products sold — other		5,919			7,541			12,723			17,436
Operating expenses		176,681			197,143			358,454			376,113
Depreciation and amortization		79,229			65,476			154,888			127,359
Selling, general and administrative		54,756			44,720			112,061			95,465
Total costs and expenses		936,659			2,431,411			2,210,535			4,702,727
OPERATING INCOME		215,031			221,940			571,129			589,869
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized		(119,559	)		(90,543	)		(220,950	)		(170,997	)
Equity in earnings (losses) of affiliates		1,673			(169	)		2,170			(95	)
Gains (losses) on disposal of assets		181			515			(245	)		(936	)
Gains (losses) on non-hedged interest rate derivatives		49,911			27,178			59,962			(4,458	)
Allowance for equity funds used during construction		(1,839	)		15,660			18,588			25,548
Other, net		(377	)		1,567			324			9,519
INCOME BEFORE INCOME TAX EXPENSE		145,021			176,148			430,978			448,450
Income tax expense		3,263			9,330			9,470			14,474
NET INCOME		141,758			166,818			421,508			433,976
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST		37,383			46,424			165,597			186,877
NET INCOME ATTRIBUTABLE TO PARTNERS		104,375			120,394			255,911			247,099
GENERAL PARTNER’S INTEREST IN NET INCOME		322			373			791			765
LIMITED PARTNERS’ INTEREST IN NET INCOME	$	104,053		$	120,021		$	255,120		$	246,334
BASIC NET INCOME PER LIMITED PARTNER UNIT	$	0.47		$	0.54		$	1.14		$	1.11
BASIC AVERAGE NUMBER OF UNITS OUTSTANDING		222,898,248			222,829,956			222,898,157			222,829,956
DILUTED NET INCOME PER LIMITED PARTNER UNIT	$	0.47		$	0.54		$	1.14		$	1.10
DILUTED AVERAGE NUMBER OF UNITS OUTSTANDING		222,898,248			222,829,956			222,898,157			222,829,956

ENERGY TRANSFER EQUITY, L.P. — PARENT COMPANY
DISTRIBUTABLE CASH
(Dollars in thousands, except per unit)
(unaudited)

The following table presents the calculation and reconciliation of Distributable Cash of the Parent Company with respect to the following periods:

	Three Months Ended June 30,						Six Months Ended June 30,
	2009			2008			2009			2008
Distributable Cash:
Cash distributions expected from Energy Transfer Partners, L.P. associated with:
General partner interest (1):
Standard distribution rights	$	4,861		$	4,377		$	9,721		$	8,357
Incentive distribution rights		84,164			75,692			168,310			143,494
Less: Expected General Partner contribution to ETP to maintain its 2% interest		—			(13,098	)		(3,354	)		(13,098	)
Limited partner interest (1):
62,500,797 Common units		55,860			55,860			111,720			110,158
Total cash expected from Energy Transfer Partners, L.P. (1)		144,885			122,831			286,397			248,911
Deduct expenses of the Parent Company on a stand-alone basis:
Parent Company-related expenses		(701	)		(1,207	)		(2,603	)		(4,056	)
Interest expense, net of amortization of financing costs, interest income, and realized gains and losses on interest rate derivatives		(24,426	)		(24,553	)		(44,888	)		(48,456	)
Distributable Cash	$	119,758		$	97,071		$	238,906		$	196,399
Cash distributions to be paid to the partners of Energy Transfer Equity, L.P. (2):
Distribution per limited partner unit as of the end of the period	$	0.5350		$	0.4800		$	1.0600		$	0.4800
Distributions to be paid to public unitholders		50,819			45,562			100,688			87,327
Distributions to be paid to affiliates		68,431			61,396			135,583			117,676
Distributions to be paid to general partner		370			332			733			637
Total cash distributions to be paid by Energy Transfer Equity, L.P. to its limited and general partners (2)	$	119,620		$	107,290		$	237,004		$	205,640
									��
Reconciliation of Non-GAAP “Distributable Cash” to GAAP “Net Income” and GAAP “Net cash provided by operating activities” for the Parent Company on a stand-alone basis:
Net income attributable to partners	$	104,375		$	120,394		$	255,911		$	247,099
Adjustments to derive Distributable Cash:
Equity in income of unconsolidated affiliates		(110,941	)		(116,872	)		(287,534	)		(302,344	)
Quarterly distribution expected to be received from Energy Transfer Partners, L.P.		144,885			122,831			286,397			248,911
Amortization included in interest expense		1,420			752			4,162			1,504
Other non-cash		138			(3	)		277			10
Unrealized gains and losses on non-hedged interest rate swaps		(20,119	)		(30,031	)		(20,307	)		1,219
Distributable Cash		119,758			97,071			238,906			196,399
Adjustments to Distributable Cash to derive Net Cash Provided by Operating Activities:
Quarterly distribution expected from Energy Transfer Partners, L.P.		(144,885	)		(122,831	)		(286,397	)		(248,911	)
Cash distribution received from Energy Transfer Partners, L.P. (3)		141,485			126,079			281,205			276,463
Deferred income taxes		(573	)		—			(573	)		—
Net changes in operating assets and liabilities		251			(236	)		(2,501	)		8,532
Net cash provided by operating activities for Parent Company on a stand-alone basis	$	116,036		$	100,083		$	230,640		$	232,483

(1)	For the three months ended June 30, 2009, cash distributions expected to be received from Energy Transfer Partners, L.P. consists of cash distributions in respect of the three months ended June 30, 2009 payable on August 14, 2009 to holders of record on the close of business on August 7, 2009. For the three months ended June 30, 2008, cash distributions received from Energy Transfer Partners, L.P. consists of cash distributions paid on August 14, 2008 for the three months ended June 30, 2008.
	For the six months ended June 30, 2009, cash distributions received or expected to be received from Energy Transfer Partners, L.P. consists of cash distributions paid on May 15, 2009 in respect of the quarter ended March 31, 2009 and cash distributions in respect of the three months ended June 30, 2009 payable on August 14, 2009 to holders of record on the close of business on August 7, 2009. For the six months ended June 30, 2008, cash distributions expected to be received from Energy Transfer Partners, L.P. consists of cash distributions paid on May 15, 2008 in respect of the quarter ended March 31, 2008 and cash distributions in respect of the three months ended June 30, 2008 paid on August 14, 2008 to holders of record on the close of business on August 7, 2008.
(2)	For the three months ended June 30, 2009, cash distributions expected to be paid from Energy Transfer Equity, L.P. consists of cash distributions in respect of the three months ended June 30, 2009 payable on August 19, 2009 to holders of record on August 7, 2009. For the three months ended June 30, 2008, cash distributions paid or expected to be paid from Energy Transfer Equity, L.P. consists of cash distributions paid on August 19, 2008 for the three months ended June 30, 2008.
	For the six months ended June 30, 2009, cash distributions paid or expected to be paid by Energy Transfer Equity, L.P. consist of cash distributions paid on May 19, 2009 in respect of the quarter ended March 31, 2009 and cash distributions in respect of the three months ended June 30, 2009 payable on August 19, 2009 to holders of record on the close of business on August 7, 2009. For the six months ended June 30, 2008, cash distributions expected to be paid by Energy Transfer Equity, L.P. consist of cash distributions paid on May 15, 2008 in respect of the quarter ended March 31, 2008 and cash distributions in respect of the three months ended June 30, 2008 paid on August 14, 2008 to holders of record on the close of business on August 7, 2008.
(3)	Cash distributions received from Energy Transfer Partners, L.P. for the six months ended June 30, 2008 reflect a one-time distribution for the four-month transition period related to Energy Transfer Partners, L.P.’s change of its fiscal year from August 31 to December 31 during 2007.