Delaware | 001-32740 | 30-0108820 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit Number | Description |
99.1 | ETE Common Holdings, LLC unaudited financial statements for the three months ended March 31, 2014 |
99.2 | Energy Transfer Partners GP, L.P. and subsidiaries unaudited consolidated financial statements for the three month periods ended March 31, 2014 and 2013 |
99.3 | Regency GP LP unaudited condensed consolidated financial statements for the three month periods ended March 31, 2014 and 2013 |
99.4 | ETE GP Acquirer LLC unaudited condensed consolidated financial statements for the three month periods ended March 31, 2014 and 2013 |
Energy Transfer Equity, L.P. | |
By: LE GP, LLC, its general partner | |
Date: July 10, 2014 | /s/ Jamie Welch Jamie Welch Group Chief Financial Officer |
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
ASSETS | |||||||
AFFILIATE RECEIVABLE | $ | 209 | $ | 151 | |||
ADVANCES TO AND INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 1,573 | 1,662 | |||||
Total assets | $ | 1,782 | $ | 1,813 | |||
LIABILITIES AND EQUITY | |||||||
AFFILIATE PAYABLE | $ | 164 | $ | 111 | |||
MEMBERS’ EQUITY: | |||||||
Members’ capital | $ | 1,617 | $ | 1,700 | |||
Accumulated other comprehensive income | 1 | 2 | |||||
Total members’ equity | 1,618 | 1,702 | |||||
Total liabilities and members’ equity | $ | 1,782 | $ | 1,813 |
Three Months Ended March 31, 2014 | |||
Equity in losses of unconsolidated affiliates | $ | (30 | ) |
INCOME BEFORE INCOME TAX EXPENSE | (30 | ) | |
Income tax expense | — | ||
NET LOSS | $ | (30 | ) |
Other comprehensive loss, net of tax | $ | (1 | ) |
COMPREHENSIVE LOSS | $ | (31 | ) |
ETE Common Holdings Member, LLC | Energy Transfer Equity, L.P. | Total Members’ Equity | |||||||||
Balance, December 31, 2013 | $ | 3 | $ | 1,699 | $ | 1,702 | |||||
Distributions to members | — | (53 | ) | (53 | ) | ||||||
Net loss | — | (30 | ) | (30 | ) | ||||||
Other comprehensive loss | — | (1 | ) | (1 | ) | ||||||
Balance, March 31, 2014 | $ | 3 | $ | 1,615 | $ | 1,618 |
Three Months Ended March 31, 2014 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ | (30 | ) |
Reconciliation of net loss to net cash provided by operating activities: | |||
Equity in losses of unconsolidated affiliates | 30 | ||
Net change in operating assets and liabilities | — | ||
Net cash provided by operating activities | — | ||
Net cash provided by investing activities | — | ||
Net cash provided by financing activities | — | ||
INCREASE IN CASH AND CASH EQUIVALENTS | — | ||
CASH AND CASH EQUIVALENTS, beginning of period | — | ||
CASH AND CASH EQUIVALENTS, end of period | $ | — |
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Current assets | $ | 7,069 | $ | 6,239 | |||
Property, plant and equipment, net | 25,578 | 25,947 | |||||
Advances to and investments in unconsolidated affiliates | 4,160 | 4,436 | |||||
Goodwill | 4,507 | 4,729 | |||||
Intangible assets, net | 1,502 | 1,568 | |||||
Other non-current assets, net | 773 | 783 | |||||
Total assets | $ | 43,589 | $ | 43,702 | |||
Current liabilities | $ | 7,491 | $ | 6,067 | |||
Long-term debt, less current maturities | 16,191 | 16,451 | |||||
Deferred income taxes | 3,599 | 3,762 | |||||
Other non-current liabilities | 1,092 | 1,134 | |||||
Equity | 15,216 | 16,288 | |||||
Total liabilities and equity | $ | 43,589 | $ | 43,702 |
Three Months Ended | |||
March 31, 2014 | |||
Revenue | $ | 12,232 | |
Operating income | 688 | ||
Net income | 491 |
/d | per day | ||
AmeriGas | AmeriGas Partners, L.P. | ||
AOCI | accumulated other comprehensive income (loss) | ||
Bbls | barrels | ||
Btu | British thermal unit, an energy measurement used by gas companies to convert the volume of gas used to its heat equivalent, and thus calculate the actual energy used | ||
Capacity | capacity of a pipeline, processing plant or storage facility refers to the maximum capacity under normal operating conditions and, with respect to pipeline transportation capacity, is subject to multiple factors (including natural gas injections and withdrawals at various delivery points along the pipeline and the utilization of compression) which may reduce the throughput capacity from specified capacity levels | ||
Citrus | Citrus Corp. | ||
CrossCountry | CrossCountry Energy, LLC | ||
DOT | U.S. Department of Transportation | ||
ET Crude Oil | Energy Transfer Crude Oil Company, LLC, a joint venture owned 60% by ETE and 40% by ETP | ||
ETC Compression | ETC Compression, LLC | ||
ETC FEP | ETC Fayetteville Express Pipeline, LLC | ||
ETC OLP | La Grange Acquisition, L.P., which conducts business under the assumed name of Energy Transfer Company | ||
ETC Tiger | ETC Tiger Pipeline, LLC | ||
ETE | Energy Transfer Equity, L.P., a publicly traded partnership and the owner of ETP LLC | ||
ETE Holdings | ETE Common Holdings, LLC, a wholly-owned subsidiary of ETE | ||
ET Interstate | Energy Transfer Interstate Holdings, LLC | ||
ETP Credit Facility | ETP’s $2.5 billion revolving credit facility | ||
ETP GP | Energy Transfer Partners GP, L.P., the general partner of ETP | ||
ETP LLC | Energy Transfer Partners, L.L.C., the general partner of ETP GP | ||
EPA | U.S. Environmental Protection Agency | ||
Exchange Act | Securities Exchange Act of 1934 | ||
FEP | Fayetteville Express Pipeline LLC | ||
FERC | Federal Energy Regulatory Commission | ||
FGT | Florida Gas Transmission Company, LLC | ||
GAAP | accounting principles generally accepted in the United States of America | ||
Holdco | ETP Holdco Corporation | ||
IDRs | incentive distribution rights | ||
LIBOR | London Interbank Offered Rate | ||
LNG | liquefied natural gas | ||
Lone Star | Lone Star NGL LLC | ||
MACS | Mid-Atlantic Convenience Stores, LLC | ||
MGE | Missouri Gas Energy | ||
MMBtu | million British thermal units | ||
MMcf | million cubic feet | ||
MTBE | methyl tertiary butyl ether | ||
NEG | New England Gas Company | ||
NGL | natural gas liquid, such as propane, butane and natural gasoline | ||
NYMEX | New York Mercantile Exchange | ||
OSHA | federal Occupational Safety and Health Act | ||
OTC | over-the-counter | ||
Panhandle | Panhandle Eastern Pipe Line Company, LP | ||
PCBs | polychlorinated biphenyls | ||
PEPL Holdings | PEPL Holdings, LLC | ||
PES | Philadelphia Energy Solutions | ||
PHMSA | Pipeline Hazardous Materials Safety Administration | ||
Regency | Regency Energy Partners LP, a subsidiary of ETE | ||
Sea Robin | Sea Robin Pipeline Company, LLC, a subsidiary of Panhandle | ||
SEC | Securities and Exchange Commission | ||
Southern Union | Southern Union Company | ||
SUGS | Southern Union Gas Services | ||
Sunoco | Sunoco, Inc. | ||
Sunoco Logistics | Sunoco Logistics Partners L.P. | ||
Sunoco Partners | Sunoco Partners LLC, the general partner of Sunoco Logistics | ||
Transwestern | Transwestern Pipeline Company, LLC | ||
Trunkline | Trunkline Gas Company, LLC, a subsidiary of Panhandle | ||
Trunkline LNG | Trunkline LNG Company, LLC, a subsidiary of ETE | ||
March 31, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 979 | $ | 549 | |||
Accounts receivable, net | 3,959 | 3,359 | |||||
Accounts receivable from related companies | 184 | 165 | |||||
Inventories | 1,420 | 1,765 | |||||
Exchanges receivable | 94 | 56 | |||||
Price risk management assets | 9 | 35 | |||||
Current assets held for sale | 167 | — | |||||
Other current assets | 257 | 310 | |||||
Total current assets | 7,069 | 6,239 | |||||
PROPERTY, PLANT AND EQUIPMENT | 28,239 | 28,430 | |||||
ACCUMULATED DEPRECIATION | (2,661 | ) | (2,483 | ) | |||
25,578 | 25,947 | ||||||
ADVANCES TO AND INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 4,160 | 4,436 | |||||
NON-CURRENT PRICE RISK MANAGEMENT ASSETS | 1 | 17 | |||||
GOODWILL | 4,536 | 4,758 | |||||
INTANGIBLE ASSETS, net | 1,502 | 1,568 | |||||
OTHER NON-CURRENT ASSETS, net | 772 | 766 | |||||
Total assets | $ | 43,618 | $ | 43,731 |
March 31, 2014 | December 31, 2013 | ||||||
LIABILITIES AND EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 3,928 | $ | 3,627 | |||
Accounts payable to related companies | 96 | 45 | |||||
Exchanges payable | 282 | 285 | |||||
Price risk management liabilities | 59 | 45 | |||||
Accrued and other current liabilities | 1,629 | 1,428 | |||||
Current maturities of long-term debt | 1,388 | 637 | |||||
Current liabilities held for sale | 109 | — | |||||
Total current liabilities | 7,491 | 6,067 | |||||
LONG-TERM DEBT, less current maturities | 16,191 | 16,451 | |||||
NON-CURRENT PRICE RISK MANAGEMENT LIABILITIES | 39 | 54 | |||||
DEFERRED INCOME TAXES | 3,599 | 3,762 | |||||
OTHER NON-CURRENT LIABILITIES | 1,053 | 1,080 | |||||
COMMITMENTS AND CONTINGENCIES (Note 10) | |||||||
EQUITY: | |||||||
General Partner | — | — | |||||
Limited Partners: | |||||||
Class A Limited Partner interest | 68 | 71 | |||||
Class B Limited Partner interest | 123 | 129 | |||||
Total partners’ capital | 191 | 200 | |||||
Noncontrolling interest | 15,054 | 16,117 | |||||
Total equity | 15,245 | 16,317 | |||||
Total liabilities and equity | $ | 43,618 | $ | 43,731 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
REVENUES: | |||||||
Natural gas sales | $ | 1,103 | $ | 874 | |||
NGL sales | 951 | 589 | |||||
Crude sales | 4,093 | 3,201 | |||||
Gathering, transportation and other fees | 655 | 637 | |||||
Refined product sales | 4,478 | 4,662 | |||||
Other | 952 | 891 | |||||
Total revenues | 12,232 | 10,854 | |||||
COSTS AND EXPENSES: | |||||||
Cost of products sold | 10,866 | 9,594 | |||||
Operating expenses | 319 | 327 | |||||
Depreciation and amortization | 266 | 260 | |||||
Selling, general and administrative | 93 | 139 | |||||
Total costs and expenses | 11,544 | 10,320 | |||||
OPERATING INCOME | 688 | 534 | |||||
OTHER INCOME (EXPENSE): | |||||||
Interest expense, net of interest capitalized | (219 | ) | (211 | ) | |||
Equity in earnings of unconsolidated affiliates | 79 | 72 | |||||
Gain on sale of AmeriGas common units | 70 | — | |||||
Gains (losses) on interest rate derivatives | (2 | ) | 7 | ||||
Other, net | (3 | ) | 3 | ||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE | 613 | 405 | |||||
Income tax expense from continuing operations | 146 | 3 | |||||
INCOME FROM CONTINUING OPERATIONS | 467 | 402 | |||||
Income from discontinued operations | 24 | 22 | |||||
NET INCOME | 491 | 424 | |||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 378 | 296 | |||||
NET INCOME ATTRIBUTABLE TO PARTNERS | 113 | 128 | |||||
GENERAL PARTNER’S INTEREST IN NET INCOME | — | — | |||||
LIMITED PARTNERS’ INTEREST IN NET INCOME | $ | 113 | $ | 128 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Net income | $ | 491 | $ | 424 | |||
Other comprehensive income (loss), net of tax: | |||||||
Reclassification to earnings of gains and losses on derivative instruments accounted for as cash flow hedges | 4 | (1 | ) | ||||
Change in value of derivative instruments accounted for as cash flow hedges | (4 | ) | 2 | ||||
Change in value of available-for-sale securities | — | 1 | |||||
Actuarial loss relating to pension and other postretirement benefits | (1 | ) | (1 | ) | |||
Foreign currency translation adjustment | (3 | ) | (1 | ) | |||
Change in other comprehensive income from equity investments | (7 | ) | 7 | ||||
(11 | ) | 7 | |||||
Comprehensive income | 480 | 431 | |||||
Less: Comprehensive income attributable to noncontrolling interest | 367 | 303 | |||||
Comprehensive income attributable to partners | $ | 113 | $ | 128 |
General Partner | Limited Partners | Noncontrolling Interest | Total | ||||||||||||
Balance, December 31, 2013 | $ | — | $ | 200 | $ | 16,117 | $ | 16,317 | |||||||
Distributions to partners | — | (122 | ) | — | (122 | ) | |||||||||
Distributions to noncontrolling interest | — | — | (437 | ) | (437 | ) | |||||||||
Units issued for cash | — | — | 142 | 142 | |||||||||||
Capital contributions from noncontrolling interest | — | — | 27 | 27 | |||||||||||
Trunkline LNG Transaction (see Note 2) | — | — | (1,167 | ) | (1,167 | ) | |||||||||
Other comprehensive loss, net of tax | — | — | (11 | ) | (11 | ) | |||||||||
Other, net | — | — | 5 | 5 | |||||||||||
Net income | — | 113 | 378 | 491 | |||||||||||
Balance, March 31, 2014 | $ | — | $ | 191 | $ | 15,054 | $ | 15,245 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 491 | $ | 424 | |||
Reconciliation of net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 266 | 260 | |||||
Deferred income taxes | (107 | ) | 8 | ||||
Amortization included in interest expense | (16 | ) | (23 | ) | |||
LIFO valuation adjustments | (14 | ) | (38 | ) | |||
Non-cash compensation expense | 14 | 14 | |||||
Gain on sale of AmeriGas common units | (70 | ) | — | ||||
Equity in earnings of unconsolidated affiliates | (79 | ) | (72 | ) | |||
Distributions from unconsolidated affiliates | 49 | 80 | |||||
Other non-cash | (6 | ) | 6 | ||||
Net change in operating assets and liabilities, net of effects of acquisitions and deconsolidations (see Note 3) | 159 | (303 | ) | ||||
Net cash provided by operating activities | 687 | 356 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Cash proceeds from the sale of AmeriGas common units | 381 | — | |||||
Capital expenditures (excluding allowance for equity funds used during construction) | (727 | ) | (595 | ) | |||
Contributions in aid of construction costs | 7 | 8 | |||||
Contributions to unconsolidated affiliates | (43 | ) | (1 | ) | |||
Distributions from unconsolidated affiliates in excess of cumulative earnings | 32 | 15 | |||||
Proceeds from the sale of assets | 6 | 10 | |||||
Other | (21 | ) | 4 | ||||
Net cash used in investing activities | (365 | ) | (559 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from borrowings | 939 | 2,563 | |||||
Repayments of long-term debt | (454 | ) | (1,835 | ) | |||
Net proceeds from subsidiary issuance of Common Units | 142 | 192 | |||||
Capital contributions received from noncontrolling interest | 40 | 42 | |||||
Distributions to partners | (122 | ) | (122 | ) | |||
Distributions to noncontrolling interest | (437 | ) | (404 | ) | |||
Debt issuance costs | — | (16 | ) | ||||
Net cash provided by financing activities | 108 | 420 | |||||
INCREASE IN CASH AND CASH EQUIVALENTS | 430 | 217 | |||||
CASH AND CASH EQUIVALENTS, beginning of period | 549 | 311 | |||||
CASH AND CASH EQUIVALENTS, end of period | $ | 979 | $ | 528 |
1. | OPERATIONS AND ORGANIZATION: |
• | ETC OLP, a Texas limited partnership primarily engaged in midstream and intrastate transportation and storage natural gas operations. ETC OLP owns and operates, through its wholly and majority-owned subsidiaries, natural gas gathering systems, intrastate natural gas pipeline systems and gas processing plants and is engaged in the business of purchasing, gathering, transporting, processing, and marketing natural gas and NGLs in the states of Texas, Louisiana, New Mexico and West Virginia. ETC OLP’s intrastate transportation and storage operations primarily focus on transporting natural gas in Texas through our Oasis pipeline, ET Fuel System, East Texas pipeline and HPL System. ETC OLP’s midstream operations focus on the gathering, compression, treating, conditioning and processing of natural gas, primarily on or through our Southeast Texas System, Eagle Ford System, North Texas System and Northern Louisiana assets. ETC OLP also owns a 70% interest in Lone Star and also owns MACS, a convenience store operator. |
• | ET Interstate, a Delaware limited liability company with revenues consisting primarily of fees earned from natural gas transportation services and operational gas sales. ET Interstate is the parent company of: |
• | Transwestern, a Delaware limited liability company engaged in interstate transportation of natural gas. Transwestern’s revenues consist primarily of fees earned from natural gas transportation services and operational gas sales. |
• | ETC FEP, a Delaware limited liability company that directly owns a 50% interest in FEP, which owns 100% of the Fayetteville Express interstate natural gas pipeline. |
• | ETC Tiger, a Delaware limited liability company engaged in interstate transportation of natural gas. |
• | CrossCountry, a Delaware limited liability company that indirectly owns a 50% interest in Citrus, which owns 100% of the FGT interstate natural gas pipeline. |
• | ETC Compression, a Delaware limited liability company engaged in natural gas compression services and related equipment sales. |
• | Holdco, a Delaware limited liability company that indirectly owns Panhandle and Sunoco. Panhandle and Sunoco operations are described as follows: |
• | Panhandle owns and operates assets in the regulated and unregulated natural gas industry and is primarily engaged in the transportation and storage of natural gas in the United States. As discussed in Note 2, in January 2014, Panhandle consummated a merger with Southern Union, the indirect parent of Panhandle, and PEPL Holdings, the sole limited partner of Panhandle, pursuant to which each of Southern Union and PEPL Holdings were merged with and into Panhandle, with Panhandle surviving the merger. |
• | Sunoco owns and operates retail marketing assets, which sell gasoline and middle distillates at retail locations and operates convenience stores primarily on the east coast and in the midwest region of the United States. |
• | Sunoco Logistics, a publicly traded Delaware limited partnership that owns and operates a logistics business, consisting of refined products and crude oil pipelines, terminalling and storage assets, and refined products and crude oil acquisition and marketing assets. |
2. | ACQUISITIONS, DIVESTITURES AND RELATED TRANSACTIONS: |
3. | CASH AND CASH EQUIVALENTS: |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Accounts receivable | $ | (751 | ) | $ | (659 | ) | |
Accounts receivable from related companies | (23 | ) | (48 | ) | |||
Inventories | 338 | (48 | ) | ||||
Exchanges receivable | (44 | ) | 11 | ||||
Other current assets | 39 | 36 | |||||
Other non-current assets, net | (15 | ) | (6 | ) | |||
Accounts payable | 441 | 435 | |||||
Accounts payable to related companies | 57 | 3 | |||||
Exchanges payable | (1 | ) | 14 | ||||
Accrued and other current liabilities | 104 | (35 | ) | ||||
Other non-current liabilities | (25 | ) | 17 | ||||
Price risk management assets and liabilities, net | 39 | (23 | ) | ||||
Net change in operating assets and liabilities, net of effects of acquisitions and deconsolidations | $ | 159 | $ | (303 | ) |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
NON-CASH INVESTING ACTIVITIES: | |||||||
Accrued capital expenditures | $ | 168 | $ | 372 | |||
NON-CASH FINANCING ACTIVITIES: | |||||||
Contributions receivable related to noncontrolling interest | $ | — | $ | 8 |
4. | INVENTORIES: |
March 31, 2014 | December 31, 2013 | ||||||
Natural gas and NGLs | $ | 223 | $ | 519 | |||
Crude oil | 572 | 488 | |||||
Refined products | 466 | 597 | |||||
Appliances, parts and fittings and other | 159 | 161 | |||||
Total inventories | $ | 1,420 | $ | 1,765 |
5. | FAIR VALUE MEASUREMENTS: |
Fair Value Measurements at March 31, 2014 | |||||||||||
Fair Value Total | Level 1 | Level 2 | |||||||||
Assets: | |||||||||||
Interest rate derivatives | $ | 4 | $ | — | $ | 4 | |||||
Commodity derivatives: | |||||||||||
Natural Gas: | |||||||||||
Basis Swaps IFERC/NYMEX | 5 | 5 | — | ||||||||
Swing Swaps IFERC | 1 | 1 | — | ||||||||
Fixed Swaps/Futures | 118 | 118 | — | ||||||||
Power: | |||||||||||
Forwards | 5 | — | 5 | ||||||||
Futures | 1 | 1 | — | ||||||||
Natural Gas Liquids – Forwards/Swaps | 3 | 3 | — | ||||||||
Refined Products – Futures | 1 | 1 | — | ||||||||
Crude – Futures | 1 | 1 | — | ||||||||
Total commodity derivatives | 135 | 130 | 5 | ||||||||
Total assets | $ | 139 | $ | 130 | $ | 9 | |||||
Liabilities: | |||||||||||
Interest rate derivatives | $ | (96 | ) | $ | — | $ | (96 | ) | |||
Commodity derivatives: | |||||||||||
Natural Gas: | |||||||||||
Basis Swaps IFERC/NYMEX | (3 | ) | (3 | ) | — | ||||||
Swing Swaps IFERC | (4 | ) | (4 | ) | — | ||||||
Fixed Swaps/Futures | (135 | ) | (135 | ) | — | ||||||
Power: | |||||||||||
Forwards | (2 | ) | — | (2 | ) | ||||||
Futures | (3 | ) | (3 | ) | — | ||||||
Natural Gas Liquids – Forwards/Swaps | (5 | ) | (5 | ) | — | ||||||
Refined Products – Futures | (1 | ) | (1 | ) | — | ||||||
Total commodity derivatives | (153 | ) | (151 | ) | (2 | ) | |||||
Total liabilities | $ | (249 | ) | $ | (151 | ) | $ | (98 | ) |
Fair Value Measurements at December 31, 2013 | |||||||||||
Fair Value Total | Level 1 | Level 2 | |||||||||
Assets: | |||||||||||
Interest rate derivatives | $ | 47 | $ | — | $ | 47 | |||||
Commodity derivatives: | |||||||||||
Natural Gas: | |||||||||||
Basis Swaps IFERC/NYMEX | 5 | 5 | — | ||||||||
Swing Swaps IFERC | 8 | 1 | 7 | ||||||||
Fixed Swaps/Futures | 201 | 201 | — | ||||||||
Power – Forwards | 3 | — | 3 | ||||||||
Natural Gas Liquids – Forwards/Swaps | 5 | 5 | — | ||||||||
Refined Products – Futures | 5 | 5 | — | ||||||||
Total commodity derivatives | 227 | 217 | 10 | ||||||||
Total assets | $ | 274 | $ | 217 | $ | 57 | |||||
Liabilities: | |||||||||||
Interest rate derivatives | $ | (95 | ) | $ | — | $ | (95 | ) | |||
Commodity derivatives: | |||||||||||
Natural Gas: | |||||||||||
Basis Swaps IFERC/NYMEX | (4 | ) | (4 | ) | — | ||||||
Swing Swaps IFERC | (6 | ) | — | (6 | ) | ||||||
Fixed Swaps/Futures | (201 | ) | (201 | ) | — | ||||||
Forward Physical Swaps | (1 | ) | — | (1 | ) | ||||||
Power – Forwards | (1 | ) | — | (1 | ) | ||||||
Natural Gas Liquids – Forwards/Swaps | (5 | ) | (5 | ) | — | ||||||
Refined Products – Futures | (5 | ) | (5 | ) | — | ||||||
Total commodity derivatives | (223 | ) | (215 | ) | (8 | ) | |||||
Total liabilities | $ | (318 | ) | $ | (215 | ) | $ | (103 | ) |
6. | DEBT OBLIGATIONS: |
7. | EQUITY: |
• | First, 100% to our General Partner, until the aggregate net income allocated to our General Partner for the current year and all previous years is equal to the aggregate net losses allocated to our General Partner for all previous years; |
• | Second, 99.99% to our Class A Limited Partners, in proportion to their relative allocation of net losses, and 0.01% to our General Partner until the aggregate net income allocated to our Class A Limited Partners and our General Partner for the current and all previous years is equal to the aggregate net losses allocated to our Class A Limited Partners and our General Partner for all previous years; and |
• | Third, 99.99% to our Class A Limited Partners, pro rata, and 0.01% to our General Partner. |
Number of Units | ||
Number of Common Units, beginning of period | 333.8 | |
Common Units issued in connection with Equity Distribution Agreements | 2.0 | |
Common Units issued in connection with the Distribution Reinvestment Plan | 0.7 | |
Common Units redeemed in connection with the Trunkline LNG Transaction | (18.7 | ) |
Number of Common Units, end of period | 317.8 |
Quarter Ended | Record Date | Payment Date | Rate | |||||
December 31, 2013 | February 7, 2014 | February 14, 2014 | $ | 0.92000 | ||||
March 31, 2014 | May 5, 2014 | May 15, 2014 | 0.93500 |
Total Year | |||
2014 (remainder) | $ | 80 | |
2015 | 51 | ||
2016 | 72 | ||
2017 | 50 | ||
2018 | 45 | ||
2019 | 35 |
Quarter Ended | Record Date | Payment Date | Rate | |||||
December 31, 2013 | February 10, 2014 | February 14, 2014 | $ | 0.66250 | ||||
March 31, 2014 | May 9, 2014 | May 15, 2014 | 0.69500 |
March 31, 2014 | December 31, 2013 | ||||||
Available-for-sale securities | $ | 2 | $ | 2 | |||
Foreign currency translation adjustment | (4 | ) | (1 | ) | |||
Net loss on commodity related hedges | (4 | ) | (4 | ) | |||
Actuarial gain related to pensions and other postretirement benefits | 55 | 56 | |||||
Equity investments, net | 1 | 8 | |||||
Subtotal | 50 | 61 | |||||
Amounts attributable to noncontrolling interest | (50 | ) | (61 | ) | |||
Total AOCI, net of tax | $ | — | $ | — |
8. | INCOME TAXES: |
9. | RETIREMENT BENEFITS: |
Three Months Ended March 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Net periodic benefit cost: | |||||||||||||||
Service cost | $ | — | $ | — | $ | 2 | $ | — | |||||||
Interest cost | 8 | 1 | 9 | 2 | |||||||||||
Expected return on plan assets | (11 | ) | (2 | ) | (15 | ) | (3 | ) | |||||||
Actuarial (gain) loss amortization | (1 | ) | — | 1 | — | ||||||||||
Settlement credits | (1 | ) | — | (2 | ) | — | |||||||||
(5 | ) | (1 | ) | (5 | ) | (1 | ) | ||||||||
Regulatory adjustment | — | — | 2 | — | |||||||||||
Net periodic benefit cost | $ | (5 | ) | $ | (1 | ) | $ | (3 | ) | $ | (1 | ) |
10. | REGULATORY MATTERS, COMMITMENTS, CONTINGENCIES AND ENVIRONMENTAL LIABILITIES: |
• | Certain of our interstate pipelines conduct soil and groundwater remediation related to contamination from past uses of PCBs. PCB assessments are ongoing and, in some cases, our subsidiaries could potentially be held responsible for contamination caused by other parties. |
• | Certain gathering and processing systems are responsible for soil and groundwater remediation related to releases of hydrocarbons. |
• | Currently operating Sunoco retail sites. |
• | Legacy sites related to Sunoco, that are subject to environmental assessments include formerly owned terminals and other logistics assets, retail sites that Sunoco no longer operates, closed and/or sold refineries and other formerly owned sites. |
• | Sunoco is potentially subject to joint and several liability for the costs of remediation at sites at which it has been identified as a potentially responsible party (“PRP”). As of March 31, 2014, Sunoco had been named as a PRP at 39 identified or potentially identifiable as “Superfund” sites under federal and/or comparable state law. Sunoco is usually one of a number of companies identified as a PRP at a site. Sunoco has reviewed the nature and extent of its involvement at each site and other relevant circumstances and, based upon Sunoco’s purported nexus to the sites, believes that its potential liability associated with such sites will not be significant. |
March 31, 2014 | December 31, 2013 | ||||||
Current | $ | 70 | $ | 45 | |||
Non-current | 331 | 350 | |||||
Total environmental liabilities | $ | 401 | $ | 395 |
11. | PRICE RISK MANAGEMENT ASSETS AND LIABILITIES: |
March 31, 2014 | December 31, 2013 | ||||||||
Notional Volume | Maturity | Notional Volume | Maturity | ||||||
Mark-to-Market Derivatives | |||||||||
(Trading) | |||||||||
Natural Gas (MMBtu): | |||||||||
Fixed Swaps/Futures | 10,475,000 | 2014-2019 | 9,457,500 | 2014-2019 | |||||
Basis Swaps IFERC/NYMEX(1) | (14,502,500 | ) | 2014-2015 | (487,500 | ) | 2014-2017 | |||
Swing Swaps | — | — | 1,937,500 | 2014-2016 | |||||
Power (Megawatt): | |||||||||
Forwards | 527,550 | 2014 | 351,050 | 2014 | |||||
Futures | (1,161,949 | ) | 2014 | (772,476 | ) | 2014 | |||
Options – Puts | (160,000 | ) | 2014 | (52,800 | ) | 2014 | |||
Options – Calls | 104,800 | 2014 | 103,200 | 2014 | |||||
Crude (Bbls) – Futures | 343,000 | 2014 | 103,000 | 2014 | |||||
(Non-Trading) | |||||||||
Natural Gas (MMBtu): | |||||||||
Basis Swaps IFERC/NYMEX | 3,520,000 | 2014 | 570,000 | 2014 | |||||
Swing Swaps IFERC | 32,690,000 | 2014 | (9,690,000 | ) | 2014-2016 | ||||
Fixed Swaps/Futures | (1,402,500 | ) | 2014-2015 | (8,195,000 | ) | 2014-2015 | |||
Forward Physical Contracts | (5,483,135 | ) | 2014-2015 | 5,668,559 | 2014-2015 | ||||
Natural Gas Liquid (Bbls) – Forwards/Swaps | (904,000 | ) | 2014 | (1,133,600 | ) | 2014 | |||
Refined Products (Bbls) – Futures | (123,000 | ) | 2014 | (280,000 | ) | 2014 | |||
Fair Value Hedging Derivatives | |||||||||
(Non-Trading) | |||||||||
Natural Gas (MMBtu): | |||||||||
Basis Swaps IFERC/NYMEX | — | — | (7,352,500 | ) | 2014 | ||||
Fixed Swaps/Futures | (4,500,000 | ) | 2014 | (50,530,000 | ) | 2014 | |||
Hedged Item – Inventory | 4,500,000 | 2014 | 50,530,000 | 2014 | |||||
Cash Flow Hedging Derivatives | |||||||||
(Non-Trading) | |||||||||
Natural Gas (MMBtu): | |||||||||
Basis Swaps IFERC/NYMEX | (1,375,000 | ) | 2014 | (1,825,000 | ) | 2014 | |||
Fixed Swaps/Futures | (9,625,000 | ) | 2014 | (12,775,000 | ) | 2014 | |||
Natural Gas Liquid (Bbls) – Forwards/Swaps | (765,000 | ) | 2014 | (780,000 | ) | 2014 | |||
Crude (Bbls) – Futures | — | — | (30,000 | ) | 2014 |
(1) | Includes aggregate amounts for open positions related to Houston Ship Channel, Waha Hub, NGPL TexOk, West Louisiana Zone and Henry Hub locations. |
Entity | Term | Type(1) | Notional Amount Outstanding | |||||||||
March 31, 2014 | December 31, 2013 | |||||||||||
ETP | July 2014(2) | Forward-starting to pay a fixed rate of 4.25% and receive a floating rate | $ | 400 | $ | 400 | ||||||
ETP | July 2015(2) | Forward-starting to pay a fixed rate of 3.38% and receive a floating rate | 200 | — | ||||||||
ETP | July 2016(3) | Forward-starting to pay a fixed rate of 3.80% and receive a floating rate | 200 | — | ||||||||
ETP | July 2017(4) | Forward-starting to pay a fixed rate of 4.18% and receive a floating rate | 200 | — | ||||||||
ETP | July 2018 | Pay a floating rate plus a spread of 4.17% and receive a fixed rate of 6.70% | — | 600 | ||||||||
ETP | June 2021 | Pay a floating rate plus a spread of 2.17% and receive a fixed rate of 4.65% | — | 400 | ||||||||
ETP | February 2023 | Pay a floating rate plus a spread of 1.73% and receive a fixed rate of 3.60% | 200 | 400 | ||||||||
Panhandle | November 2021 | Pay a fixed rate of 3.80% and receive a floating rate | 275 | 275 |
(1) | Floating rates are based on 3-month LIBOR. |
(2) | Represents the effective date. These forward-starting swaps have terms of 10 years with a mandatory termination date the same as the effective date. |
(3) | Represents the effective date. These forward-starting swaps have terms of 10 and 30 years with a mandatory termination date the same as the effective date. |
(4) | Represents the effective date. These forward-starting swaps have terms of 30 years with a mandatory termination date the same as the effective date. |
Fair Value of Derivative Instruments | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2014 | December 31, 2013 | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Commodity derivatives (margin deposits) | $ | 1 | $ | 3 | $ | (12 | ) | $ | (18 | ) | ||||||
1 | 3 | (12 | ) | (18 | ) | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Commodity derivatives (margin deposits) | 128 | 227 | (139 | ) | (209 | ) | ||||||||||
Commodity derivatives | 57 | 39 | (53 | ) | (38 | ) | ||||||||||
Interest rate derivatives | 4 | 47 | (96 | ) | (95 | ) | ||||||||||
189 | 313 | (288 | ) | (342 | ) | |||||||||||
Total derivatives | $ | 190 | $ | 316 | $ | (300 | ) | $ | (360 | ) |
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Balance Sheet Location | March 31, 2014 | December 31, 2013 | March 31, 2014 | December 31, 2013 | ||||||||||||||
Derivatives in offsetting agreements: | ||||||||||||||||||
OTC contracts | Price risk management assets (liabilities) | $ | 60 | $ | 41 | $ | (56 | ) | $ | (38 | ) | |||||||
Broker cleared derivative contracts | Other current assets (liabilities) | 188 | 265 | (254 | ) | (318 | ) | |||||||||||
248 | 306 | (310 | ) | (356 | ) | |||||||||||||
Offsetting agreements: | ||||||||||||||||||
Counterparty netting | Price risk management assets (liabilities) | (52 | ) | (36 | ) | 52 | 36 | |||||||||||
Payments on margin deposit | Other current assets | (10 | ) | (1 | ) | 54 | 55 | |||||||||||
(62 | ) | (37 | ) | 106 | 91 | |||||||||||||
Net derivatives with offsetting agreements | 186 | 269 | (204 | ) | (265 | ) | ||||||||||||
Derivatives without offsetting agreements | 4 | 47 | (96 | ) | (95 | ) | ||||||||||||
Total derivatives | $ | 190 | $ | 316 | $ | (300 | ) | $ | (360 | ) |
Change in Value Recognized in OCI on Derivatives (Effective Portion) | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Derivatives in cash flow hedging relationships: | ||||||||
Commodity derivatives | $ | (4 | ) | $ | 2 | |||
Total | $ | (4 | ) | $ | 2 |
Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) | Amount of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) | ||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Derivatives in cash flow hedging relationships: | |||||||||
Commodity derivatives | Cost of products sold | $ | (4 | ) | $ | 1 | |||
Total | $ | (4 | ) | $ | 1 |
Location of Gain/(Loss) Recognized in Income on Derivatives | Amount of Gain/(Loss) Recognized in Income Representing Hedge Ineffectiveness and Amount Excluded from the Assessment of Effectiveness | ||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Derivatives in fair value hedging relationships (including hedged item): | |||||||||
Commodity derivatives | Cost of products sold | $ | (6 | ) | $ | 5 | |||
Total | $ | (6 | ) | $ | 5 |
Location of Gain/(Loss) Recognized in Income on Derivatives | Amount of Gain/(Loss) Recognized in Income on Derivatives | ||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||
Commodity derivatives – Trading | Cost of products sold | $ | 7 | $ | (4 | ) | |||
Commodity derivatives – Non-trading | Cost of products sold | 7 | (18 | ) | |||||
Commodity derivatives – Non-trading | Deferred gas purchases | — | (5 | ) | |||||
Interest rate derivatives | Gains (losses) on interest rate derivatives | (2 | ) | 7 | |||||
Total | $ | 12 | $ | (20 | ) |
12. | RELATED PARTY TRANSACTIONS: |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Affiliated revenues | $ | 341 | $ | 382 |
March 31, 2014 | December 31, 2013 | ||||||
Accounts receivable from related companies: | |||||||
ETE | $ | 37 | $ | 18 | |||
Regency | 62 | 53 | |||||
PES | 1 | 7 | |||||
FGT | 20 | 29 | |||||
ET Crude Oil | 24 | 24 | |||||
Trunkline LNG | 10 | 3 | |||||
Other | 30 | 31 | |||||
Total accounts receivable from related companies: | $ | 184 | $ | 165 | |||
Accounts payable to related companies: | |||||||
ETE | $ | 3 | $ | 8 | |||
Regency | 29 | 24 | |||||
PES | 1 | — | |||||
FGT | 2 | 8 | |||||
Trunkline LNG | 55 | — | |||||
Other | 6 | 5 | |||||
Total accounts payable to related companies: | $ | 96 | $ | 45 |
13. | OTHER INFORMATION: |
March 31, 2014 | December 31, 2013 | ||||||
Deposits paid to vendors | $ | 33 | $ | 49 | |||
Prepaid and other | 224 | 261 | |||||
Total other current assets | $ | 257 | $ | 310 |
March 31, 2014 | December 31, 2013 | ||||||
Interest payable | $ | 264 | $ | 294 | |||
Customer advances and deposits | 59 | 126 | |||||
Accrued capital expenditures | 167 | 166 | |||||
Accrued wages and benefits | 105 | 155 | |||||
Taxes payable other than income taxes | 230 | 214 | |||||
Income taxes payable | 239 | 3 | |||||
Deferred income taxes | 164 | 119 | |||||
Deferred revenue | 66 | — | |||||
Other | 335 | 351 | |||||
Total accrued and other current liabilities | $ | 1,629 | $ | 1,428 |
14. | SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION: |
March 31, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
INVESTMENT IN ENERGY TRANSFER PARTNERS | $ | 162 | $ | 171 | |||
GOODWILL | 29 | 29 | |||||
Total assets | $ | 191 | $ | 200 | |||
LIABILITIES AND EQUITY | |||||||
EQUITY: | |||||||
General Partner | $ | — | $ | — | |||
Limited Partners: | |||||||
Class A Limited Partner interest | 68 | 71 | |||||
Class B Limited Partner interest | 123 | 129 | |||||
Total partners’ capital | 191 | 200 | |||||
Total liabilities and equity | $ | 191 | $ | 200 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
OTHER INCOME (EXPENSE): | |||||||
Equity in earnings of unconsolidated affiliates | $ | 113 | $ | 128 | |||
NET INCOME BEFORE INCOME TAX EXPENSE | 113 | 128 | |||||
Income tax expense | — | — | |||||
NET INCOME | $ | 113 | $ | 128 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 122 | $ | 122 | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Distributions to partners | (122 | ) | (122 | ) | |||
Net cash provided by financing activities | (122 | ) | (122 | ) | |||
INCREASE IN CASH AND CASH EQUIVALENTS | — | — | |||||
CASH AND CASH EQUIVALENTS, beginning of period | — | — | |||||
CASH AND CASH EQUIVALENTS, end of period | $ | — | $ | — |
Condensed Consolidated Statements of Operations | |
Notes to Condensed Consolidated Financial Statements | |
Name | Definition or Description | |
/d | Per day | |
AOCI | Accumulated Other Comprehensive Income (Loss) | |
Aqua - PVR | Aqua - PVR Water Services, LLC | |
ARO | Asset Retirement Obligation | |
Bbls | Barrels | |
bps | Basis points | |
Citi | Citigroup Global Markets Inc. | |
Coal Handling | Coal Handling Solutions LLC | |
Eagle Rock | Eagle Rock Energy Partners, L.P. | |
ELG | Edwards Lime Gathering LLC and its wholly-owned subsidiaries, ELG Oil LLC and ELG Utility LLC | |
EROC | Eagle Rock Energy Partners, L.P. | |
ETC | Energy Transfer Company, the name assumed by La Grange Acquisition, L.P. for conducting business and shared services, a wholly-owned subsidiary of ETP | |
ETE | Energy Transfer Equity, L.P. | |
ETP | Energy Transfer Partners, L.P. | |
Finance Corp. | Regency Energy Finance Corp., a wholly-owned subsidiary of the Partnership | |
GAAP | Accounting principles generally accepted in the United States of America | |
General Partner | Regency GP LP, the general partner of the Partnership, or Regency GP LLC, the general partner of Regency GP LP, which effectively manages the business and affairs of the Partnership through Regency Employees Management LLC | |
Grey Ranch | Grey Ranch Plant LP, a former joint venture between SUGS and a subsidiary of SandRidge Energy, Inc. | |
Gulf States | Gulf States Transmission LLC, a wholly-owned subsidiary of the Partnership | |
Holdco | ETP Holdco Corporation | |
Hoover | Hoover Energy Partners, LP | |
HPC | RIGS Haynesville Partnership Co., a general partnership, and its wholly-owned subsidiary, Regency Intrastate Gas LP | |
IDRs | Incentive Distribution Rights | |
Lone Star | Lone Star NGL LLC | |
LTIP | Long-Term Incentive Plan | |
MBbls | One thousand barrels | |
MEP | Midcontinent Express Pipeline LLC | |
MMBtu | One million BTUs. BTU is a unit of energy needed to raise the temperature of one pound of water by one degree Fahrenheit | |
NGLs | Natural gas liquids, including ethane, propane, normal butane, iso butane and natural gasoline | |
NYMEX | New York Mercantile Exchange | |
NMED | New Mexico Environmental Department | |
Partnership | Regency Energy Partners LP | |
PEPL | Panhandle Eastern Pipe Line Company, LP | |
PEPL Holdings | PEPL Holdings, LLC, a former wholly-owned subsidiary of Southern Union that merged into PEPL | |
PVR | PVR Partners, L.P. | |
Ranch JV | Ranch Westex JV LLC | |
Regency Western | Regency Western G&P LLC, an indirectly wholly-owned subsidiary of the Partnership | |
RGS | Regency Gas Services LP, a wholly-owned subsidiary of the Partnership | |
RIGS | Regency Intrastate Gas System | |
SEC | Securities and Exchange Commission | |
Senior Notes | The collective of 2018 Notes, 2018 PVR Notes, 2020 Notes, 2020 PVR Notes, 2021 Notes, 2021 PVR Notes, 2022 Notes, 2023 5.5% Notes and 2023 4.5% Notes | |
Series A Preferred Units | Series A convertible redeemable preferred units | |
Services Co. | ETE Services Company, LLC | |
Southern Union | Southern Union Company | |
SUGS | Southern Union Gathering Company LLC | |
TCEQ | Texas Commission on Environmental Quality | |
WTI | West Texas Intermediate Crude |
March 31, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 13 | $ | 19 | |||
Trade accounts receivable, net | 446 | 292 | |||||
Related party receivables | 24 | 28 | |||||
Inventories | 57 | 42 | |||||
Other current assets | 20 | 19 | |||||
Total current assets | 560 | 400 | |||||
Property, plant and equipment | 8,033 | 5,050 | |||||
Less accumulated depreciation and depletion | (712 | ) | (632 | ) | |||
Property, plant and equipment, net | 7,321 | 4,418 | |||||
Investment in unconsolidated affiliates | 2,178 | 2,097 | |||||
Other, net of accumulated amortization of debt issuance costs of $26 and $24 | 84 | 57 | |||||
Intangible assets, net of accumulated amortization of $116 and $107 | 3,568 | 682 | |||||
Goodwill | 1,486 | 1,128 | |||||
TOTAL ASSETS | $ | 15,197 | $ | 8,782 | |||
LIABILITIES AND PARTNERS’ CAPITAL AND NONCONTROLLING INTEREST | |||||||
Current Liabilities: | |||||||
Drafts payable | $ | 17 | $ | 26 | |||
Trade accounts payable | 393 | 291 | |||||
Related party payables | 57 | 69 | |||||
Accrued interest | 94 | 38 | |||||
Other current liabilities | 108 | 51 | |||||
Total current liabilities | 669 | 475 | |||||
Long-term derivative liabilities | 20 | 19 | |||||
Other long-term liabilities | 49 | 30 | |||||
Long-term debt, net | 5,564 | 3,310 | |||||
Commitments and contingencies | |||||||
Regency’s Series A preferred units, redemption amounts of $38 and $38 | 32 | 32 | |||||
Partners’ capital and noncontrolling interest: | |||||||
Partners’ capital | 783 | 782 | |||||
Total partners’ capital | 783 | 782 | |||||
Noncontrolling interest | 8,080 | 4,134 | |||||
Total partners’ capital and noncontrolling interest | 8,863 | 4,916 | |||||
TOTAL LIABILITIES AND PARTNERS’ CAPITAL AND NONCONTROLLING INTEREST | $ | 15,197 | $ | 8,782 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
REVENUES | |||||||
Gas sales, including related party amounts of $13 and $5 | $ | 335 | $ | 167 | |||
NGL sales, including related party amounts of $50 and $25 | 331 | 235 | |||||
Gathering, transportation and other fees, including related party amounts of $6 and $7 | 172 | 127 | |||||
Net realized and unrealized loss from derivatives | (13 | ) | (3 | ) | |||
Other | 38 | 14 | |||||
Total revenues | 863 | 540 | |||||
OPERATING COSTS AND EXPENSES | |||||||
Cost of sales, including related party amounts of $10 and $9 | 638 | 387 | |||||
Operation and maintenance | 78 | 69 | |||||
General and administrative | 33 | 33 | |||||
(Gain) loss on asset sales, net | (2 | ) | 1 | ||||
Depreciation, depletion and amortization | 94 | 65 | |||||
Total operating costs and expenses | 841 | 555 | |||||
OPERATING INCOME (LOSS) | 22 | (15 | ) | ||||
Income from unconsolidated affiliates | 43 | 35 | |||||
Interest expense, net | (56 | ) | (37 | ) | |||
Other income and deductions, net | 2 | (14 | ) | ||||
INCOME (LOSS) BEFORE INCOME TAXES | 11 | (31 | ) | ||||
Income tax benefit | (1 | ) | (2 | ) | |||
NET INCOME (LOSS) | $ | 12 | $ | (29 | ) | ||
Net (income) loss attributable to noncontrolling interest | (7 | ) | 31 | ||||
NET INCOME ATTRIBUTABLE TO REGENCY GP LP | $ | 5 | $ | 2 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Net income (loss) | $ | 12 | $ | (29 | ) | ||
Other comprehensive income (loss) | — | — | |||||
Total other comprehensive income (loss) | — | — | |||||
Comprehensive income (loss) | 12 | (29 | ) | ||||
Comprehensive income (loss) attributable to noncontrolling interest | 7 | (31 | ) | ||||
Comprehensive income (loss) attributable to Regency GP LP | $ | 5 | $ | 2 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 12 | $ | (29 | ) | ||
Reconciliation of net income (loss) to net cash flows provided by operating activities: | |||||||
Depreciation, depletion and amortization, including debt issuance cost amortization and bond premium write-off and amortization | 97 | 67 | |||||
Income from unconsolidated affiliates | (43 | ) | (35 | ) | |||
Derivative valuation changes | 17 | 18 | |||||
(Gain) loss on asset sales, net | (2 | ) | 1 | ||||
Regency unit-based compensation expenses | 2 | 2 | |||||
Cash flow changes in current assets and liabilities: | |||||||
Trade accounts receivable and related party receivables | (21 | ) | (14 | ) | |||
Other current assets and other current liabilities | 35 | 85 | |||||
Trade accounts payable and related party payables | 48 | (47 | ) | ||||
Distributions of earnings received from unconsolidated affiliates | 43 | 36 | |||||
Cash flow changes in other assets and liabilities | (1 | ) | (1 | ) | |||
Net cash flows provided by operating activities | 187 | 83 | |||||
INVESTING ACTIVITIES: | |||||||
Capital expenditures | (215 | ) | (273 | ) | |||
Capital contributions to unconsolidated affiliates | (40 | ) | (43 | ) | |||
Distributions in excess of earnings of unconsolidated affiliates | 9 | 16 | |||||
Acquisitions, net of cash received | (213 | ) | — | ||||
Proceeds from asset sales | 5 | 12 | |||||
Net cash flows used in investing activities | (454 | ) | (288 | ) | |||
FINANCING ACTIVITIES: | |||||||
(Repayments) borrowings under revolving credit facility, net | (519 | ) | 179 | ||||
Proceeds from issuances of senior notes | 886 | — | |||||
Debt issuance costs | (16 | ) | — | ||||
Drafts payable | (8 | ) | 5 | ||||
Distributions to non-controlling interest and subsidiary distributions on unvested unit awards | (103 | ) | (79 | ) | |||
Partner distributions | (4 | ) | (4 | ) | |||
Proceeds from Regency issuance of common units, net of issuance costs | 34 | — | |||||
Distributions to Regency Series A preferred units | (1 | ) | (2 | ) | |||
Noncontrolling interest (distributions) contributions | (8 | ) | 11 | ||||
Contributions from previous parent | — | 86 | |||||
Net cash flows provided by financing activities | 261 | 196 | |||||
Net change in cash and cash equivalents | (6 | ) | (9 | ) | |||
Cash and cash equivalents at beginning of period | 19 | 53 | |||||
Cash and cash equivalents at end of period | $ | 13 | $ | 44 | |||
Supplemental cash flow information: | |||||||
Accrued capital expenditures | $ | 24 | $ | 62 | |||
Interest paid, net of amounts capitalized | 29 | 18 | |||||
Issuance of common units in connection with PVR and Hoover Acquisitions | 4,015 | — | |||||
Accrued capital contribution to unconsolidated affiliate | — | 8 | |||||
Long-term debt assumed in PVR Acquisition | 1,887 | — |
Partners’ Interest | Noncontrolling Interest | Total | |||||||||
Balance - December 31, 2013 | $ | 782 | $ | 4,134 | $ | 4,916 | |||||
Regency common unit offerings, net of costs | — | 34 | 34 | ||||||||
Regency issuance of common units in connection with Hoover Acquisition | — | 109 | 109 | ||||||||
Regency issuance of common units in connection with PVR Acquisition | — | 3,906 | 3,906 | ||||||||
Regency unit-based compensation expenses | — | 2 | 2 | ||||||||
Distributions to partners, noncontrolling interests and subsidiary’s unvested unit awards | (4 | ) | (103 | ) | (107 | ) | |||||
Noncontrolling interest distributions | — | (8 | ) | (8 | ) | ||||||
Net income | 5 | 7 | 12 | ||||||||
Distributions to Regency Series A Preferred Units | — | (1 | ) | (1 | ) | ||||||
Balance - March 31, 2014 | $ | 783 | $ | 8,080 | $ | 8,863 |
Three Months Ended March 31, 2013 | |||
Revenues: | |||
Partnership | $ | 349 | |
SUGS | 191 | ||
Combined | $ | 540 | |
Net loss: | |||
Partnership | $ | (5 | ) |
SUGS | (24 | ) | |
Combined | $ | (29 | ) |
Common | Class F | ||||
Balance - December 31, 2013 | 210,850,232 | 6,274,483 | |||
Issuance of common units under LTIP, net of forfeitures and tax withholding | 10,126 | — | |||
Issuance of common units under the equity distribution agreement | 1,255,572 | — | |||
Issuance of common units in connection with Hoover Acquisition | 4,040,471 | — | |||
Issuance of common units in connection with PVR Acquisition | 140,388,382 | — | |||
Balance - March 31, 2014 | 356,544,783 | 6,274,483 |
Quarter Ended | Record Date | Payment Date | Cash Distributions (per common unit) | |||
December 31, 2013 | February 7, 2014 | February 14, 2014 | $0.475 | |||
March 31, 2014 | May 8, 2014 | May 15, 2014 | $0.480 |
At March 21, 2014 | |||
Current assets | $ | 150 | |
Property, plant and equipment | 2,687 | ||
Investment in unconsolidated affiliates | 62 | ||
Goodwill and intangible assets | 3,079 | ||
Total assets acquired | $ | 5,978 | |
Current liabilities | 166 | ||
Long-term debt | 1,887 | ||
Asset retirement obligations | 3 | ||
Net assets acquired | $ | 3,922 |
At February 3, 2014 | |||
Current assets | $ | 5 | |
Property, plant and equipment | 114 | ||
Goodwill and intangible assets | 181 | ||
Total assets acquired | $ | 300 | |
Current liabilities | 5 | ||
Asset retirement obligations | 2 | ||
Net assets acquired | $ | 293 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Revenues | $ | 1,145 | $ | 810 | |||
Net loss attributable to the Partnership | (29 | ) | (60 | ) |
March 31, 2014 | December 31, 2013 | ||||||
HPC | $ | 439 | $ | 442 | |||
MEP | 541 | 548 | |||||
Lone Star | 1,097 | 1,070 | |||||
Ranch JV | 38 | 36 | |||||
Aqua - PVR | 51 | — | |||||
Coal Handling | 12 | — | |||||
Grey Ranch | — | 1 | |||||
Total | $ | 2,178 | $ | 2,097 |
Three Months Ended March 31, 2014 | |||||||||||||||||||
HPC | MEP | Lone Star | Ranch JV | Grey Ranch | |||||||||||||||
Contributions to unconsolidated affiliates | $ | — | $ | — | $ | 27 | $ | — | $ | — | |||||||||
Distributions from unconsolidated affiliates | (10 | ) | (18 | ) | (25 | ) | — | — | |||||||||||
Share of earnings of unconsolidated affiliates’ net income (loss) | 7 | 11 | 25 | 2 | (1 | ) | |||||||||||||
Amortization of excess fair value of investment | (1 | ) | — | — | — | — |
Three Months Ended March 31, 2013 | |||||||||||||||
HPC | MEP | Lone Star | Ranch JV | ||||||||||||
Contributions to unconsolidated affiliates | $ | — | $ | — | $ | 27 | $ | 1 | |||||||
Distributions from unconsolidated affiliates | (16 | ) | (19 | ) | (17 | ) | — | ||||||||
Share of earnings of unconsolidated affiliates’ net income | 10 | 10 | 16 | — | |||||||||||
Amortization of excess fair value of investment | (1 | ) | — | — | — |
Three Months Ended March 31, 2014 | |||||||||||||||
HPC | MEP | Lone Star | Ranch JV | ||||||||||||
Total revenues | $ | 37 | $ | 66 | $ | 813 | $ | 9 | |||||||
Operating income | 18 | 34 | 84 | 7 | |||||||||||
Net income | 15 | 21 | 83 | 6 |
Three Months Ended March 31, 2013 | |||||||||||||||
HPC | MEP | Lone Star | Ranch JV | ||||||||||||
Total revenues | $ | 40 | $ | 65 | $ | 358 | $ | 3 | |||||||
Operating income | 20 | 34 | 56 | — | |||||||||||
Net income | 20 | 21 | 55 | — |
Assets | Liabilities | ||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2014 | December 31, 2013 | ||||||||||||
Derivatives not designated as cash flow hedges | |||||||||||||||
Current amounts | |||||||||||||||
Commodity contracts | $ | 2 | $ | 3 | $ | 11 | $ | 9 | |||||||
Long-term amounts | |||||||||||||||
Commodity contracts | 1 | 1 | — | — | |||||||||||
Embedded derivatives in Series A Preferred Units | — | — | 20 | 19 | |||||||||||
Total derivatives | $ | 3 | $ | 4 | $ | 31 | $ | 28 |
Three Months Ended March 31, | ||||||||||
2014 | 2013 | |||||||||
Derivatives not designated in a hedging relationship | Location of Gain/(Loss) Recognized in Income | Amount of Gain/(Loss) Recognized in Income on Derivatives | ||||||||
Commodity derivatives | Revenues | $ | (13 | ) | $ | (3 | ) | |||
Embedded derivatives in Series A Preferred Units | Other income & deductions, net | (1 | ) | (14 | ) | |||||
$ | (14 | ) | $ | (17 | ) |
March 31, 2014 | December 31, 2013 | ||||||
Senior notes | $ | 4,873 | $ | 2,800 | |||
Revolving loans | 606 | 510 | |||||
Unamortized premium and discounts | 85 | — | |||||
Long-term debt | $ | 5,564 | $ | 3,310 | |||
Availability under revolving credit facility: | |||||||
Total credit facility limit | $ | 1,500 | $ | 1,200 | |||
Revolving loans | (606 | ) | (510 | ) | |||
Letters of credit | (21 | ) | (14 | ) | |||
Total available | $ | 873 | $ | 676 |
Years Ending December 31, | Amount | |||
2014 (remainder) | $ | — | ||
2015 | — | |||
2016 | — | |||
2017 | — | |||
2018 | 900 | |||
Thereafter | 4,579 | |||
Total * | $ | 5,479 |
* | Excludes a $99 million unamortized premium on the PVR senior notes assumed by the Partnership and a $14 million unamortized discount on the 2022 Notes. |
March 31, 2014 | December 31, 2013 | ||||||
Current | $ | 2 | $ | 2 | |||
Noncurrent | 8 | 6 | |||||
Total environmental liabilities | $ | 10 | $ | 8 |
March 31, 2014 | December 31, 2013 | ||||||
Related party receivables | |||||||
ETE and its subsidiaries | $ | 21 | $ | 25 | |||
HPC | 2 | 1 | |||||
Ranch JV | 1 | 2 | |||||
Total related party receivables | $ | 24 | $ | 28 | |||
Related party payables | |||||||
ETE and its subsidiaries | $ | 55 | $ | 68 | |||
HPC | 1 | 1 | |||||
Ranch JV | 1 | — | |||||
Total related party payables | $ | 57 | $ | 69 |
Phantom Units | Units | Weighted Average Grant Date Fair Value | ||||
Outstanding at beginning of period | 982,242 | $ | 23.16 | |||
Service condition grants | 710,791 | 25.97 | ||||
Vested service condition | (1,126 | ) | 24.19 | |||
Forfeited service condition | (42,585 | ) | 24.64 | |||
Outstanding at end of period | 1,649,322 | $ | 24.33 |
Fair Value Measurements at March 31, 2014 | Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||||
Fair Value Total | Significant Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Fair Value Total | Significant Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Commodity Derivatives: | |||||||||||||||||||||||
Natural Gas | $ | — | $ | — | $ | — | $ | 2 | $ | 2 | $ | — | |||||||||||
NGLs | 3 | 3 | — | 2 | 2 | — | |||||||||||||||||
Total Assets | $ | 3 | $ | 3 | $ | — | $ | 4 | $ | 4 | $ | — | |||||||||||
Liabilities | |||||||||||||||||||||||
Commodity Derivatives: | |||||||||||||||||||||||
Natural Gas | $ | 8 | $ | 8 | $ | — | $ | 4 | $ | 4 | $ | — | |||||||||||
NGLs | 1 | 1 | — | 4 | 4 | — | |||||||||||||||||
Condensate | 2 | 2 | — | 1 | 1 | — | |||||||||||||||||
Embedded derivatives in Regency Series A Preferred Units | 20 | — | 20 | 19 | — | 19 | |||||||||||||||||
Total Liabilities | $ | 31 | $ | 11 | $ | 20 | $ | 28 | $ | 9 | $ | 19 |
Unobservable Input | March 31, 2014 | ||
Credit Spread | 4.15 | % | |
Volatility | 22.55 | % |
Embedded Derivatives in Series A Preferred Units | |||
Net liability balance at December 31, 2013 | $ | 19 | |
Change in fair value | 1 | ||
Net liability balance at March 31, 2014 | $ | 20 |
Name | Definition or Description | |
/d | Per day | |
AOCI | Accumulated Other Comprehensive Income (Loss) | |
Aqua - PVR | Aqua - PVR Water Services, LLC | |
ARO | Asset Retirement Obligation | |
Bbls | Barrels | |
bps | Basis points | |
Citi | Citigroup Global Markets Inc. | |
Coal Handling | Coal Handling Solutions LLC | |
Eagle Rock | Eagle Rock Energy Partners, L.P. | |
ELG | Edwards Lime Gathering LLC and its wholly-owned subsidiaries, ELG Oil LLC and ELG Utility LLC | |
EROC | Eagle Rock Energy Partners, L.P. | |
ETC | Energy Transfer Company, the name assumed by La Grange Acquisition, L.P. for conducting business and shared services, a wholly-owned subsidiary of ETP | |
ETE | Energy Transfer Equity, L.P. | |
ETP | Energy Transfer Partners, L.P. | |
Finance Corp. | Regency Energy Finance Corp., a wholly-owned subsidiary of the Partnership | |
GAAP | Accounting principles generally accepted in the United States of America | |
General Partner | Regency GP LP, the general partner of the Partnership, or Regency GP LLC, the general partner of Regency GP LP, which effectively manages the business and affairs of the Partnership through Regency Employees Management LLC | |
Grey Ranch | Grey Ranch Plant LP, a former joint venture between SUGS and a subsidiary of SandRidge Energy, Inc. | |
Gulf States | Gulf States Transmission LLC, a wholly-owned subsidiary of the Partnership | |
Holdco | ETP Holdco Corporation | |
Hoover | Hoover Energy Partners, LP | |
HPC | RIGS Haynesville Partnership Co., a general partnership, and its wholly-owned subsidiary, Regency Intrastate Gas LP | |
IDRs | Incentive Distribution Rights | |
Lone Star | Lone Star NGL LLC | |
LTIP | Long-Term Incentive Plan | |
MBbls | One thousand barrels | |
MEP | Midcontinent Express Pipeline LLC | |
MMBtu | One million BTUs. BTU is a unit of energy needed to raise the temperature of one pound of water by one degree Fahrenheit | |
NGLs | Natural gas liquids, including ethane, propane, normal butane, iso butane and natural gasoline | |
NYMEX | New York Mercantile Exchange | |
NMED | New Mexico Environmental Department | |
Partnership | Regency Energy Partners LP | |
PEPL | Panhandle Eastern Pipe Line Company, LP | |
PEPL Holdings | PEPL Holdings, LLC, a former wholly-owned subsidiary of Southern Union that merged into PEPL | |
PVR | PVR Partners, L.P. | |
Ranch JV | Ranch Westex JV LLC | |
Regency Western | Regency Western G&P LLC, an indirectly wholly-owned subsidiary of the Partnership | |
RGS | Regency Gas Services LP, a wholly-owned subsidiary of the Partnership | |
RIGS | Regency Intrastate Gas System | |
SEC | Securities and Exchange Commission | |
Senior Notes | The collective of 2018 Notes, 2018 PVR Notes, 2020 Notes, 2020 PVR Notes, 2021 Notes, 2021 PVR Notes, 2022 Notes, 2023 5.5% Notes and 2023 4.5% Notes | |
Series A Preferred Units | Series A convertible redeemable preferred units | |
Services Co. | ETE Services Company, LLC | |
Southern Union | Southern Union Company | |
SUGS | Southern Union Gathering Company LLC | |
TCEQ | Texas Commission on Environmental Quality | |
WTI | West Texas Intermediate Crude |
March 31, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 13 | $ | 19 | |||
Trade accounts receivable, net | 446 | 292 | |||||
Related party receivables | 24 | 28 | |||||
Inventories | 57 | 42 | |||||
Other current assets | 20 | 19 | |||||
Total current assets | 560 | 400 | |||||
Property, plant and equipment | 8,033 | 5,050 | |||||
Less accumulated depreciation and depletion | (712 | ) | (632 | ) | |||
Property, plant and equipment, net | 7,321 | 4,418 | |||||
Investment in unconsolidated affiliates | 2,178 | 2,097 | |||||
Other, net of accumulated amortization of debt issuance costs of $26 and $24 | 84 | 57 | |||||
Intangible assets, net of accumulated amortization of $116 and $107 | 3,568 | 682 | |||||
Goodwill | 1,486 | 1,128 | |||||
TOTAL ASSETS | $ | 15,197 | $ | 8,782 | |||
LIABILITIES AND MEMBER’S EQUITY AND NONCONTROLLING INTEREST | |||||||
Current Liabilities: | |||||||
Drafts payable | $ | 17 | $ | 26 | |||
Trade accounts payable | 393 | 291 | |||||
Related party payables | 57 | 69 | |||||
Accrued interest | 94 | 38 | |||||
Other current liabilities | 108 | 51 | |||||
Total current liabilities | 669 | 475 | |||||
Long-term derivative liabilities | 20 | 19 | |||||
Other long-term liabilities | 49 | 30 | |||||
Long-term debt, net | 5,564 | 3,310 | |||||
Commitments and contingencies | |||||||
Regency’s Series A preferred units, redemption amounts of $38 and $38 | 32 | 32 | |||||
Member’s equity and noncontrolling interest: | |||||||
Total member’s equity | 783 | 782 | |||||
Noncontrolling interest | 8,080 | 4,134 | |||||
Total member’s equity and noncontrolling interest | 8,863 | 4,916 | |||||
TOTAL LIABILITIES AND MEMBER’S EQUITY AND NONCONTROLLING INTEREST | $ | 15,197 | $ | 8,782 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
REVENUES | |||||||
Gas sales, including related party amounts of $13 and $5 | $ | 335 | $ | 167 | |||
NGL sales, including related party amounts of $50 and $25 | 331 | 235 | |||||
Gathering, transportation and other fees, including related party amounts of $6 and $7 | 172 | 127 | |||||
Net realized and unrealized loss from derivatives | (13 | ) | (3 | ) | |||
Other | 38 | 14 | |||||
Total revenues | 863 | 540 | |||||
OPERATING COSTS AND EXPENSES | |||||||
Cost of sales, including related party amounts of $10 and $9 | 638 | 387 | |||||
Operation and maintenance | 78 | 69 | |||||
General and administrative | 33 | 33 | |||||
(Gain) loss on asset sales, net | (2 | ) | 1 | ||||
Depreciation, depletion and amortization | 94 | 65 | |||||
Total operating costs and expenses | 841 | 555 | |||||
OPERATING INCOME (LOSS) | 22 | (15 | ) | ||||
Income from unconsolidated affiliates | 43 | 35 | |||||
Interest expense, net | (56 | ) | (37 | ) | |||
Other income and deductions, net | 2 | (14 | ) | ||||
INCOME (LOSS) BEFORE INCOME TAXES | 11 | (31 | ) | ||||
Income tax benefit | (1 | ) | (2 | ) | |||
NET INCOME (LOSS) | $ | 12 | $ | (29 | ) | ||
Net (income) loss attributable to noncontrolling interest | (7 | ) | 31 | ||||
NET INCOME ATTRIBUTABLE TO ETE GP ACQUIRER LLC | $ | 5 | $ | 2 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Net income (loss) | $ | 12 | $ | (29 | ) | ||
Other comprehensive income (loss) | — | — | |||||
Total other comprehensive income (loss) | — | — | |||||
Comprehensive income (loss) | 12 | (29 | ) | ||||
Comprehensive income (loss) attributable to noncontrolling interest | 7 | (31 | ) | ||||
Comprehensive income (loss) attributable to ETE GP Acquirer LLC | $ | 5 | $ | 2 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 12 | $ | (29 | ) | ||
Reconciliation of net income (loss) to net cash flows provided by operating activities: | |||||||
Depreciation, depletion and amortization, including debt issuance cost amortization and bond premium write-off and amortization | 97 | 67 | |||||
Income from unconsolidated affiliates | (43 | ) | (35 | ) | |||
Derivative valuation changes | 17 | 18 | |||||
(Gain) loss on asset sales, net | (2 | ) | 1 | ||||
Regency unit-based compensation expenses | 2 | 2 | |||||
Cash flow changes in current assets and liabilities: | |||||||
Trade accounts receivable and related party receivables | (21 | ) | (14 | ) | |||
Other current assets and other current liabilities | 35 | 85 | |||||
Trade accounts payable and related party payables | 48 | (47 | ) | ||||
Distributions of earnings received from unconsolidated affiliates | 43 | 36 | |||||
Cash flow changes in other assets and liabilities | (1 | ) | (1 | ) | |||
Net cash flows provided by operating activities | 187 | 83 | |||||
INVESTING ACTIVITIES: | |||||||
Capital expenditures | (215 | ) | (273 | ) | |||
Capital contributions to unconsolidated affiliates | (40 | ) | (43 | ) | |||
Distributions in excess of earnings of unconsolidated affiliates | 9 | 16 | |||||
Acquisitions, net of cash received | (213 | ) | — | ||||
Proceeds from asset sales | 5 | 12 | |||||
Net cash flows used in investing activities | (454 | ) | (288 | ) | |||
FINANCING ACTIVITIES: | |||||||
(Repayments) borrowings under revolving credit facility, net | (519 | ) | 179 | ||||
Proceeds from issuances of senior notes | 886 | — | |||||
Debt issuance costs | (16 | ) | — | ||||
Drafts payable | (8 | ) | 5 | ||||
Distributions to non-controlling interest and subsidiary distributions on unvested unit awards | (103 | ) | (79 | ) | |||
Partner distributions | (4 | ) | (4 | ) | |||
Proceeds from Regency issuance of common units, net of issuance costs | 34 | — | |||||
Distributions to Regency Series A preferred units | (1 | ) | (2 | ) | |||
Noncontrolling interest (distributions) contributions | (8 | ) | 11 | ||||
Contributions from previous parent | — | 86 | |||||
Net cash flows provided by financing activities | 261 | 196 | |||||
Net change in cash and cash equivalents | (6 | ) | (9 | ) | |||
Cash and cash equivalents at beginning of period | 19 | 53 | |||||
Cash and cash equivalents at end of period | $ | 13 | $ | 44 | |||
Supplemental cash flow information: | |||||||
Accrued capital expenditures | $ | 24 | $ | 62 | |||
Interest paid, net of amounts capitalized | 29 | 18 | |||||
Issuance of common units in connection with PVR and Hoover Acquisitions | 4,015 | — | |||||
Accrued capital contribution to unconsolidated affiliate | — | 8 | |||||
Long-term debt assumed in PVR Acquisition | 1,887 | — |
Member’s Equity | Noncontrolling Interest | Total | |||||||||
Balance - December 31, 2013 | $ | 782 | $ | 4,134 | $ | 4,916 | |||||
Regency common unit offerings, net of costs | — | 34 | 34 | ||||||||
Regency issuance of common units in connection with Hoover Acquisition | — | 109 | 109 | ||||||||
Regency issuance of common units in connection with PVR Acquisition | — | 3,906 | 3,906 | ||||||||
Regency unit-based compensation expenses | — | 2 | 2 | ||||||||
Distributions to partners, noncontrolling interests and subsidiary’s unvested unit awards | (4 | ) | (103 | ) | (107 | ) | |||||
Noncontrolling interest distributions | — | (8 | ) | (8 | ) | ||||||
Net income | 5 | 7 | 12 | ||||||||
Distributions to Regency Series A Preferred Units | — | (1 | ) | (1 | ) | ||||||
Balance - March 31, 2014 | $ | 783 | $ | 8,080 | $ | 8,863 |
Three Months Ended March 31, 2013 | |||
Revenues: | |||
Partnership | $ | 349 | |
SUGS | 191 | ||
Combined | $ | 540 | |
Net loss: | |||
Partnership | $ | (5 | ) |
SUGS | (24 | ) | |
Combined | $ | (29 | ) |
Common | Class F | ||||
Balance - December 31, 2013 | 210,850,232 | 6,274,483 | |||
Issuance of common units under LTIP, net of forfeitures and tax withholding | 10,126 | — | |||
Issuance of common units under the equity distribution agreement | 1,255,572 | — | |||
Issuance of common units in connection with Hoover Acquisition | 4,040,471 | — | |||
Issuance of common units in connection with PVR Acquisition | 140,388,382 | — | |||
Balance - March 31, 2014 | 356,544,783 | 6,274,483 |
Quarter Ended | Record Date | Payment Date | Cash Distributions (per common unit) | |||
December 31, 2013 | February 7, 2014 | February 14, 2014 | $0.475 | |||
March 31, 2014 | May 8, 2014 | May 15, 2014 | $0.480 |
At March 21, 2014 | |||
Current assets | $ | 150 | |
Property, plant and equipment | 2,687 | ||
Investment in unconsolidated affiliates | 62 | ||
Goodwill and intangible assets | 3,079 | ||
Total assets acquired | $ | 5,978 | |
Current liabilities | 166 | ||
Long-term debt | 1,887 | ||
Asset retirement obligations | 3 | ||
Net assets acquired | $ | 3,922 |
At February 3, 2014 | |||
Current assets | $ | 5 | |
Property, plant and equipment | 114 | ||
Goodwill and intangible assets | 181 | ||
Total assets acquired | $ | 300 | |
Current liabilities | 5 | ||
Asset retirement obligations | 2 | ||
Net assets acquired | $ | 293 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Revenues | $ | 1,145 | $ | 810 | |||
Net loss attributable to the Partnership | (29 | ) | (60 | ) |
March 31, 2014 | December 31, 2013 | ||||||
HPC | $ | 439 | $ | 442 | |||
MEP | 541 | 548 | |||||
Lone Star | 1,097 | 1,070 | |||||
Ranch JV | 38 | 36 | |||||
Aqua - PVR | 51 | — | |||||
Coal Handling | 12 | — | |||||
Grey Ranch | — | 1 | |||||
Total | $ | 2,178 | $ | 2,097 |
Three Months Ended March 31, 2014 | |||||||||||||||||||
HPC | MEP | Lone Star | Ranch JV | Grey Ranch | |||||||||||||||
Contributions to unconsolidated affiliates | $ | — | $ | — | $ | 27 | $ | — | $ | — | |||||||||
Distributions from unconsolidated affiliates | (10 | ) | (18 | ) | (25 | ) | — | — | |||||||||||
Share of earnings of unconsolidated affiliates’ net income (loss) | 7 | 11 | 25 | 2 | (1 | ) | |||||||||||||
Amortization of excess fair value of investment | (1 | ) | — | — | — | — |
Three Months Ended March 31, 2013 | |||||||||||||||
HPC | MEP | Lone Star | Ranch JV | ||||||||||||
Contributions to unconsolidated affiliates | $ | — | $ | — | $ | 27 | $ | 1 | |||||||
Distributions from unconsolidated affiliates | (16 | ) | (19 | ) | (17 | ) | — | ||||||||
Share of earnings of unconsolidated affiliates’ net income | 10 | 10 | 16 | — | |||||||||||
Amortization of excess fair value of investment | (1 | ) | — | — | — |
Three Months Ended March 31, 2014 | |||||||||||||||
HPC | MEP | Lone Star | Ranch JV | ||||||||||||
Total revenues | $ | 37 | $ | 66 | $ | 813 | $ | 9 | |||||||
Operating income | 18 | 34 | 84 | 7 | |||||||||||
Net income | 15 | 21 | 83 | 6 |
Three Months Ended March 31, 2013 | |||||||||||||||
HPC | MEP | Lone Star | Ranch JV | ||||||||||||
Total revenues | $ | 40 | $ | 65 | $ | 358 | $ | 3 | |||||||
Operating income | 20 | 34 | 56 | — | |||||||||||
Net income | 20 | 21 | 55 | — |
Assets | Liabilities | ||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2014 | December 31, 2013 | ||||||||||||
Derivatives not designated as cash flow hedges | |||||||||||||||
Current amounts | |||||||||||||||
Commodity contracts | $ | 2 | $ | 3 | $ | 11 | $ | 9 | |||||||
Long-term amounts | |||||||||||||||
Commodity contracts | 1 | 1 | — | — | |||||||||||
Embedded derivatives in Series A Preferred Units | — | — | 20 | 19 | |||||||||||
Total derivatives | $ | 3 | $ | 4 | $ | 31 | $ | 28 |
Three Months Ended March 31, | ||||||||||
2014 | 2013 | |||||||||
Derivatives not designated in a hedging relationship | Location of Gain/(Loss) Recognized in Income | Amount of Gain/(Loss) Recognized in Income on Derivatives | ||||||||
Commodity derivatives | Revenues | $ | (13 | ) | $ | (3 | ) | |||
Embedded derivatives in Series A Preferred Units | Other income & deductions, net | (1 | ) | (14 | ) | |||||
$ | (14 | ) | $ | (17 | ) |
March 31, 2014 | December 31, 2013 | ||||||
Senior notes | $ | 4,873 | $ | 2,800 | |||
Revolving loans | 606 | 510 | |||||
Unamortized premium and discounts | 85 | — | |||||
Long-term debt | $ | 5,564 | $ | 3,310 | |||
Availability under revolving credit facility: | |||||||
Total credit facility limit | $ | 1,500 | $ | 1,200 | |||
Revolving loans | (606 | ) | (510 | ) | |||
Letters of credit | (21 | ) | (14 | ) | |||
Total available | $ | 873 | $ | 676 |
Years Ending December 31, | Amount | |||
2014 (remainder) | $ | — | ||
2015 | — | |||
2016 | — | |||
2017 | — | |||
2018 | 900 | |||
Thereafter | 4,579 | |||
Total * | $ | 5,479 |
* | Excludes a $99 million unamortized premium on the PVR senior notes assumed by the Partnership and a $14 million unamortized discount on the 2022 Notes. |
March 31, 2014 | December 31, 2013 | ||||||
Current | $ | 2 | $ | 2 | |||
Noncurrent | 8 | 6 | |||||
Total environmental liabilities | $ | 10 | $ | 8 |
March 31, 2014 | December 31, 2013 | ||||||
Related party receivables | |||||||
ETE and its subsidiaries | $ | 21 | $ | 25 | |||
HPC | 2 | 1 | |||||
Ranch JV | 1 | 2 | |||||
Total related party receivables | $ | 24 | $ | 28 | |||
Related party payables | |||||||
ETE and its subsidiaries | $ | 55 | $ | 68 | |||
HPC | 1 | 1 | |||||
Ranch JV | 1 | — | |||||
Total related party payables | $ | 57 | $ | 69 |
Phantom Units | Units | Weighted Average Grant Date Fair Value | ||||
Outstanding at beginning of period | 982,242 | $ | 23.16 | |||
Service condition grants | 710,791 | 25.97 | ||||
Vested service condition | (1,126 | ) | 24.19 | |||
Forfeited service condition | (42,585 | ) | 24.64 | |||
Outstanding at end of period | 1,649,322 | $ | 24.33 |
Fair Value Measurements at March 31, 2014 | Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||||
Fair Value Total | Significant Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Fair Value Total | Significant Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Commodity Derivatives: | |||||||||||||||||||||||
Natural Gas | $ | — | $ | — | $ | — | $ | 2 | $ | 2 | $ | — | |||||||||||
NGLs | 3 | 3 | — | 2 | 2 | — | |||||||||||||||||
Total Assets | $ | 3 | $ | 3 | $ | — | $ | 4 | $ | 4 | $ | — | |||||||||||
Liabilities | |||||||||||||||||||||||
Commodity Derivatives: | |||||||||||||||||||||||
Natural Gas | $ | 8 | $ | 8 | $ | — | $ | 4 | $ | 4 | $ | — | |||||||||||
NGLs | 1 | 1 | — | 4 | 4 | — | |||||||||||||||||
Condensate | 2 | 2 | — | 1 | 1 | — | |||||||||||||||||
Embedded derivatives in Regency Series A Preferred Units | 20 | — | 20 | 19 | — | 19 | |||||||||||||||||
Total Liabilities | $ | 31 | $ | 11 | $ | 20 | $ | 28 | $ | 9 | $ | 19 |
Unobservable Input | March 31, 2014 | ||
Credit Spread | 4.15 | % | |
Volatility | 22.55 | % |
Embedded Derivatives in Series A Preferred Units | |||
Net liability balance at December 31, 2013 | $ | 19 | |
Change in fair value | 1 | ||
Net liability balance at March 31, 2014 | $ | 20 |