Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Energy Transfer Equity — Merger or Acquisition (September 2008)
22 slides from Energy Transfer Lp's merger presentation, Sep 24, 2008
Slide 1: Announcement of Strategic Joint Venture
1 OGE Energy Corp. & Energy Transfer Partners, L.P. Announcement of Strategic Joint Venture September 23, 2008
Slide 2: Legal Disclaimer
Legal Disclaimer Some of the matters discussed on this presentation may contain statements about future events, outlook and expectations regarding the Companies discussed in this presentation, all of which are forward-looking statements that are subject to certain risks, uncertainties and assumption
Slide 3: Overview of Transaction
Wa Overview of Transaction OGIE
Slide 4: Overview of Transaction
7 Overview of Transaction In exchange for a 50% interest in ETP Enogex Partners and a cash payment of $266 million, OGE will contribute: 100% of its ownership interest in Enogex, OGE's natural gas midstream subsidiary In exchange for a 50% interest in ETP Enogex Partners, ETP will contribute: 100% o
Slide 5: Geographic Footprint
9 9 9 Geographic Footprint ETP Enogex Partners will have access to multiple producing areas such as the Woodford Shale, the Uinta and Piceance Basins, the Granite Wash and Haynesville and Barnett Shales which are experiencing high levels of drilling activity ETP Enogex Partners will have a total of:
Slide 6: Balanced Asset Portfolio
11 Balanced Asset Portfolio Miles of Pipeline: 12,300 Annual Throughput: 6.9 Bcf/d Total Compression: 862,692 HP Note: Information includes 100% of pipelines, capacity and throughput of Midcontinent Express Pipeline, ("MEP") of which ETP Enogex Partners will have a 50% interest. Includes the Phoenix
Slide 7: Diversified Revenue Streams and Balanced Contract Mix
13 Diversified Revenue Streams and Balanced Contract Mix Projected % of Gross Margin by Business Segment Projected % of Gross Margin by Fee Based / Hedged vs Unhedged ETP Enogex Partners expects to have a diversified and steady stream of cash flows with a balanced contract mix 13
Slide 8: Strategic Rationale
Wa Strategic Rationale OGIE
Slide 9: Strategic Rationale
17 ETP Enogex Partners Strategic Rationale Combined entity will create a large, very competitive midstream platform with significant geographic diversity Will create an asset footprint from California to Alabama that should provide opportunities for ETP Enogex Partners to build market presence and p
Slide 10: Governance
Wa Governance OGIE
Slide 11: Governance and Operations
21 Governance and Operations Management Council of ETP Enogex Partners will be made up of: Pete Delaney (OGE, CEO), Dan Harris (OGE, COO; Enogex, President), Kelcy Warren (ETP, CEO), and Mackie McCrea (ETP, President, COO) OGE and ETP will provide operational and administrative services for the asse
Slide 12: Experienced Management Team
23 Experienced Management Team Management Council ETP Enogex Partners CFO Kelcy Warren ETP ETP Enogex Partners Board of Directors Danny Harris OGE Pete Delaney OGE Mackie McCrea ETP ETP Enogex Partners COO ETP Enogex Partners CEO ETP Enogex Partners General Counsel Prior to the IPO: ETP Enogex Partn
Slide 13: Transaction Steps / Financing
Transaction Steps / Financing 25
Slide 14: Transaction Steps / Financing
27 Transaction Steps / Financing Step A - Execute Contribution Agreement OGE and ETP execute the contribution agreement Parties file HSR and work on obtaining financing Arrange commercial revolving credit facility Launch tender for outstanding Transwestern Notes Issue Transwestern and ETP Enogex Par
Slide 15: Transaction Rationale Recap
29 Transaction Rationale Recap Combined entity will create a large, more competitive midstream platform with significant geographic diversity Will enhance basin and business line diversity, resulting in reduced basin risk and ability to leverage existing relationships ETP Enogex Partners will have g
Slide 16: Appendix
Wa Appendix OG:E
Slide 17: Asset Overview
Wa Asset Overview OG:E
Slide 18: Enogex Asset Description
35 Enogex Asset Description Asset Map Provides natural gas gathering, compression, treating/dehydration, processing, transportation and storage Approximately 2,318 miles of natural gas transmission pipe and two storage facilities Average daily throughput of 1.52 Bcf/d in 2007 Connects to 11 differen
Slide 19: Transwestern
37 Transwestern Geographically positioned to access markets in the Mid-Continent and Texas as well as the growing markets of California, Arizona, New Mexico, and southern Nevada 2,648 miles of natural gas transmission pipelines Average daily throughput of 1.8 Bcf/d in 2007 19 interconnection points
Slide 20: Midcontinent Express Pipeline
39 Midcontinent Express Pipeline ? 50/50 JV between Kinder Morgan Energy Partners, L.P. ("KMP") and ETP KMP is managing construction and will operate the pipeline Approximately 275,000 Dth/d of firm transportation capacity leased from Enogex Can be increased, subject to mutual agreement, to 800 Dth/
Slide 21: Canyon Pipeline
41 Canyon Pipeline 1,300+ miles of 2"-16" natural gas gathering pipelines 193 MMcf/d of capacity as currently configured 300 MMcf/d of capacity w/ added compression and processing ? 6 processing plants for NGL extraction and treating 90 MMcf/d of capacity 2 NGL injection points on Enterprise Mid- Co
Slide 22: Announcement of Strategic Joint Venture
43 OGE Energy Corp. & Energy Transfer Partners, L.P. Announcement of Strategic Joint Venture September 23, 2008
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