Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Energy Transfer Equity — Merger or Acquisition (May 2010)
12 slides from Energy Transfer Lp's merger presentation, May 11, 2010
Slide 1: Energy Transfer Equity Acquisition of Regency Energy Partners' General Partner
Energy Transfer Equity Acquisition of Regency Energy Partners' General Partner Investor Presentation May 11, 2010
Slide 2: Legal Disclaimer
1 Legal Disclaimer This presentation may contain statements about future events, outlook and expectations of Energy Transfer Partners, L.P. ("ETP"), Energy Transfer Equity, L.P. ("ETE") and Regency Energy Partners LP ("RGNC") (collectively, the "Partnerships"), all of which are forward-looking state
Slide 3: Transaction Overview
2 Transaction Overview ETE and GE Energy Financial Services ("GE") announced today a series of transactions whereby ETE will acquire 100% of Regency Energy Partners' ("RGNC") general partner ("RGNC GP") from GE. Concurrently, RGNC will acquire a 49.9% interest in Midcontinent Express Pipeline ("MEP"
Slide 4: ETE Pro Forma Consolidated Asset Map
3 ETE Pro Forma Consolidated Asset Map
Slide 5: Transaction Rationale for ETE
4 Transaction Rationale for ETE Attractive, complementary assets aligned with ETE's growth strategy Improves ETE's position in major shale plays (Haynesville, Eagle Ford, Marcellus, Barnett and Fayetteville) Diversifies operations and provides additional sources of fee-based margin Enhances platform
Slide 6: Transaction Structure
5 Transaction Structure Step 1 - ETP / ETE MEP Exchange ETE acquires 100% of the equity interests of the entity that owns a 49.9% (1) interest in MEP from ETP in exchange for the redemption of ETP units owned by ETE Valuation of approximately $600 million and assumption of 2010E capital contribution
Slide 7: Governance Matters
Governance Matters ETE will own and control the general partner of RGNC As a result, ETE will have the right to appoint all of the members of the Board of Directors of RGNC, except that GE will have the right to appoint two directors until it owns less than 15% of the outstanding RGNC common units I
Slide 8: Organization Summary
7 Organization Summary Note: Pro forma structure diagram assumes exercise of RGNC option to acquire additional 0.1% interest in MEP. Pro forma for MEP Transactions and Haynesville Transaction. Based on ETP and RGNC units outstanding as of 3/31/10, pro forma for announced transactions. (2) Based on R
Slide 9: Pro Forma ETE Overview
8 Pro Forma ETE Overview ETE's cash flows will be generated through its ownership interests in ETP and RGNC, which will include: ($ and units in millions, except per unit data) Pro Forma GP IDR LP LP Units Unit Market Ownership Ownership Ownership Owned Price Value ETP 1.8% 100% 28.1% 50.2 $47.10 $2
Slide 10: Transaction Rationale for ETP
9 Transaction Rationale for ETP Receiving an attractive multiple for its interest in MEP Attractive capital re-deployment opportunities available to replace MEP ETP will continue to deliver volumes to MEP through its Intrastate system Future growth projects more accretive due to reduced number of co
Slide 11: ETE Transaction Considerations & Benefits
10 ETE Transaction Considerations & Benefits No external capital requirements for ETE related to these transactions ETE will receive stable, growing distributions through its Limited Partner Interests (estimated 28.1% of ETP's common units outstanding, 22.0% of RGNC's common units outstanding), Gene
Slide 12: ETE Transaction Considerations & Benefits
11 ETE Transaction Considerations & Benefits ETE is expected to continue to deliver strong distribution rate growth ETP has a strong track record of distribution growth having grown LP distributions per unit by a 13.1% CAGR since calendar Q1 2005 (1) RGNC has shown consistent distribution growth hav
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