EX-99.1 2 dex991.htm POWER POINT PRESENTATION AT MAY 9, 2006 ANALYST MEETING. Power Point Presentation at May 9, 2006 Analyst Meeting.
May 2006
May 2006
Analyst Conference
Analyst Conference
Energy Transfer Equity, LP
Energy Transfer Equity, LP
Energy Transfer Partners, LP
Energy Transfer Partners, LP
Exhibit 99.1
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
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
Agenda
Overview
Asset Profile
ETP Corporate Structure
Investment Highlights
Propane Overview
Project Update
Midstream Overview
Financial Review
Energy Transfer Equity, LP
Summary

4
Asset Profile
A
diversified
midstream
and
propane
MLP:
3rd
largest
MLP
in
the
U.S.
Largest
intrastate
pipeline
system
in
U.S.
with
interconnects
to
major
consumption
areas
throughout
U.S.
Significant
strategically
located
natural
gas
storage
capacity
One
of
five
largest
retail
propane
marketers
in
the
United
States
with
concentration
in
highest
population
growth
areas
Annual Revenue (FYE 2005)
$6.2 B
Total Assets (2/28/06)             
$4.4 B
Book Equity (2/28/06)
$1.8 B
Enterprise Value (1)
$6.1 B
Equity Market Cap. (1)
$4.6 B
Units Outstanding (2/28/06)    
110,625,711
EBITDA (Fiscal 2006)
$710 million (2)
ETP
Financial
Summary
Assets:
Midstream
(80%
of
ETP
EBITDA):
Pipelines (active miles)
11,700
Storage (working space)
78 Bcf
Processing
240 MMcf/d
Treating
3,500 gpm
Aggregate Throughput Capacity
7.6 Bcf/d
Propane
(20%
of
ETP
EBITDA):
Propane Customers
> 700,000
Propane Service Locations
321
Geographic Footprint:
Market Hubs
5
Producing Regions
5
Interstate Pipeline Connections
> 10
Propane Operations
34 States
Employees
Midstream Operations
~565
Propane Operations
~2,730
Operational Metrics
(1) Unit price as of  May 5, 2006; excludes
value of GP and ETE.
(2) Public guidance.

5
ETP Corporate Structure
Public Unitholders
Energy Transfer Equity, L.P.
Energy Transfer Partners, L.P.
110,625,711 Units Outstanding
67.1% Limited
Partner Interest
La Grange Acquisition, L.P
Natural Gas
Midstream Operations
Heritage  Operating, L.P.
Propane
Operations
Heritage
Holdings
Inc
50% Incentive
Distribution Rights
32.9% Limited, Partner
Interest
2% General Partner
Interest

6
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
Low construction price to EBITDA multiples
Long-term contracts already in place
Excellent access to public debt and equity markets
Significant liquidity
History of consistent distribution growth
Experienced management with substantial equity ownership

7
Propane Overview
Asset Overview
Keys to Success
Customer Mix
Titan Acquisition

8
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 2%-3% internal growth excluding acquisitions
Trend of increasing margins due to higher vehicle fuel costs,
steel costs, benefit, and insurance cost
Own our own assets
Purchase land, buildings and vehicles
We own 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

9
Keys to Success
Decentralized Operations
Eliminates large scale corporate staff
Pricing determined at regional level
Billing and collection at local level, CSR collecting accounts receivables
from neighbors, likely to be paid first
Internal Growth
Plant Bonus Program to share EBITDA in excess of budget with all
employees
Growth of 1% to 3% at 4.0x multiple
Acquisitions
Disciplined approach with specific criteria
Attractive multiples at base level of deal flow
Low event risk as combining acquired operations with current locations
under seasoned Region Manager
Expense Control
Districts operate as independent profit centers with entrepreneurial attitude
Robust budgetary process with monthly accountability
Compensation based on local wage rates –
no company-wide pay scale

10
Diversified Customer Base
Residential 56.0%
Other 13.0%
Industrial/Commercial/
Agricultural 31.0%
Gallons by Retail Class

11
Titan Acquisition
200 million gallons
146 district locations
325,000 customers
33 states
$.10 -.15 accretive per unit
Closing June 1, 2006

12
Project Update

13
Project Update
42”
Expansion and Loop
New Addition
South Loop
$895 million total capital to
be spent
$320 already incurred

14
Midstream Overview
System Map with Expansions
Competitive Advantages
US Natural Gas Supply/ Demand Discussion
Supply Discussion
Producer Economics
2006 Volume and Margin Review

Energy Transfer System Map

16
Competitive Advantages
Texas Infrastructure
Market Options for Producers
Strong Position in Active Supply Basins
Operating Expertise
Producer Relationships
Backlog of Organic Growth
Positive impact of LNG

Natural Gas Supply -
Texas
*Texas produced 28%
of estimated domestic
production in 2004
*Source: www.eia.doe.gov

US Natural Gas Consumption
17.5%
17.5%
8.3%
8.3%
6%
6%
5%
5%
11%
11%
Source: EIA –
2004 Natural Gas Total Consumption

US Natural Gas Supply/ Demand

20
Natural Gas Supply -
Texas
Factors effecting drilling
Price of gas
Cost of drilling/ completing
Rig availability
Pipeline accessibility
Lease terms
Reserve risk
Magnitude of dollars per well
Availability of capital
Producer infrastructure in area
Royalty terms

21
Volume/Margin
Mar. -
May
June -
Aug.
Sept. -
Nov.
Dec. -
Feb.
Trailing
Q3 2005
Q4 2005
Q1 2006
Q2 2006
12-Month
Consolidated
Sales volume
581,914,952
627,678,954
635,388,103
643,221,361
2,488,203,370
Margin
147,079,476
131,566,320
147,768,428
275,561,668
701,975,892
Avg. rate
0.253
$                  
0.210
$                  
0.233
$                  
0.428
$                  
0.282
$                  
Billed volume/d
6,325,163
6,822,597
6,906,392
6,991,537
6,816,996
ETP Midstream Volume/ Margin Analysis

22
Financial Review
Liquidity
Distributable Cash Flow Forecast
Common Unit Coverage
Potential Distribution @ 1.15 X
Description of Class E Units
Interest Expense Calculation
Distribution Review

23
Liquidity
Long term assets supported by long term fixed rate debt
MLP structure more efficient with fixed rate debt
Floating/Fixed Rate Debt Mix
(exluding Working Capital Facilities)
100.0%
Fixed
Floating/Fixed Rate Mix
(including Working Capital Facilities)
7.7%
92.3%
Fixed
Floating
Balance
Available
Balance
Facility
As Of
Capacity
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
Size
02/28/06
02/28/06
2006
2007
2008
2009
2010
Energy
Transfer
Partners,
L.P.
$750MM Senior Notes
$750,000
$750,000
$0
$0
$0
$0
$0
$0
$400MM Senior Notes
$400,000
$400,000
$0
$0
$0
$0
$0
$0
$900MM Revolving Credit Facility
$900,000
$100,000
$800,000
$0
$0
$0
$0
$0
Heritage
Operating,
L.P.
Private Placement Notes
$292,971
$292,971
$0
$30,406
$34,806
$41,949
$40,899
$39,785
Seller Notes
$2,460
$2,460
$0
$393
$569
$502
$428
$321
Revolving Credit Facility (1)
$75,000
$21,197
$53,803
$0
$21,197
$0
$0
$0
Other (Non Competes)
$14,492
$14,492
$0
$2,063
$4,251
$3,973
$2,279
$1,040
Total Consolidated Energy Transfer Partners, L.P.$2,434,923
$1,581,120
$853,803
$32,862
$60,823
$46,424
$43,606
$41,146
(1) Heritage Operating is currently negotiating a new Credit Facility to replace the existing Credit Facility which expires December 31, 2006
Required Principal Payments
Energy Transfer Partners, L.P.
Schedule of Required Principal Payments ($ in 000's)

24
Liquidity (cont.)
$350.0
$52.1
$106.0
$132.4
$194.2
$336.4
$0
$50
$100
$150
$200
$250
$300
$350
$400
Jan-
04
Feb-
04
Mar-
04
Apr-
04
May-
04
Jun-
04
Jul-
04
Aug-
04
Sep-
04
Oct-
04
Nov-
04
Dec-
04
Jan-
05
Feb-
05
Mar-
05
Apr-
05
May-
05
Jun-
05
Jul-
05
Aug-
05
Sep-
05
Oct-
05
Nov-
05
Dec-
05
Jan-
06
Feb-
06
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
Net Equity Issued
Monthly Average Price per Unit

25
Distributable Cash Flow/ Coverage
ETP Distributable Cash Flow Calculation (in thousands)
(@ $2.55/ LP Unit)
2006E EBITDA
710,000
$        
Less: Maintenance Capital
(37,000)
$         
Less: Interest Expense
(115,000)
$       
Less: Taxes
(20,000)
$         
Distributable Cash Flow
538,000
$        
Less: Distributions to GP (IDRs)
(120,255)
$       
Distributable Cash Flow to LP
417,745
$        
LP Unit Distributions
282,096
$        
Excess Distributable Cash Flow
135,649
$        
Distribution Coverage Ratio
1.48 X

26
Interest Expense
(000's)
$750mm Senior Notes @ 5.95%
44,625
$          
$400mm Senior Notes @ 5.65%
22,600
            
$300mm Private Placement Notes @ 8.25%
24,000
            
$17mm Other @ 8.00%
1,360
               
$360mm Average Working Capital @ 6%
22,415
            
Total Annual Interest Expense
115,000
$        

27
Potential Distribution @ 1.15X
ETP Common Distribution @ 1.15X
Distributable Cash Flow (000's)
538,000
$        
ETP DCF/ LP Unit
2.99
$               
Less: Distributions to GP (IDRs)
(158,180)
$       
Distributable Cash Flow to LP
379,820
$        
LP Unit Distributions
330,243
$        
Excess Distributable Cash Flow
49,577
$          
Distribution Coverage Ratio
1.15 X

28
Class E Units
Number of Class E Units
Number of Class E Units
8,853,832
8,853,832
Maximum Distribution Rate for Class E Units (per Common Unit)
Maximum Distribution Rate for Class E Units (per Common Unit)
Distribution
Distribution
•Class E Unit
•Class E Unit
$3,120,976
$3,120,976
•General Partner
•General Partner
877,550
877,550
Total
Total
$3,998,526
$3,998,526
Class E Unit distribution treated as Treasury Unit thus distribution is returned to ETP. 
Class E Unit distribution treated as Treasury Unit thus distribution is returned to ETP. 
Net outbound cash related to Class E Units is $877,550 per year based on $2.55 ETP
Net outbound cash related to Class E Units is $877,550 per year based on $2.55 ETP
distribution rate.
distribution rate.

29
Distribution Review
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
$1.00
$1.40
$1.80
$2.20
$2.60
$3.00

30
Energy Transfer Equity, LP
ETE Corporate Structure
Statistics
Distributable Cash Flow
ETE DCF @ ETP DCF Increases

31
ETE Corporate Structure
Management
and Affiliates
Public
Unitholders
LE GP, LLC
Energy Transfer Equity, L.P.
137,216,912 Common Units Outstanding
81.8% Limited
Partner Interest
17.7% Limited
Partner Interest
50% Incentive Distribution
Rights
32.9% Limited Partner
Interest
2% General Partner  
Interest
0.5% General
Partner Interest

32
Statistics
ETE Statistics
Market Capitalization
$3.55 billion
Long Term Debt
$377 million
Enterprise Value
$3.93 billion
Outstanding Units
137,216,912
Current DCF/ Unit
$0.80
*as of May 5, 2006

33
Distributable Cash Flow
ETE Distributable Cash Flow
(in thousands)
Cash Flow from ETP
     2% GP Cash Flow
8,297
$         
     IDR Cash Flow
55,979
$       
     LP Unit Distributions
92,855
$       
Total Cash Flow from ETP
157,131
$     
Less: Interest Expense
(23,563)
$      
Less: G&A
(3,000)
$        
Distributable Cash Flow
130,569
$     
Outstanding Units
137,216,912
 
DCF/ Unit
0.95
$          

34
ETE Distributions @ ETP DCF Increases
ETE DCF Estimates
$0.95
$1.02
$1.09
$1.23
$1.16
$1.29
$1.36
$0.70
$0.90
$1.10
$1.30
$1.50
$2.55
$2.65
$2.75
$2.85
$2.95
$3.05
$3.15
ETP DCF/ Unit

35
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
Low construction price to EBITDA multiples
Long-term contracts already in place
Excellent access to public debt and equity markets
Significant liquidity
History of consistent distribution growth
Experienced management with substantial equity ownership