Supplemental Financial Statement Information

9 Months Ended

Sep. 30, 2017

Supplemental Financial Statement Information

Supplemental Financial Statement Information

SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION

Following are the financial statements of the Parent Company, which are included to provide additional information with respect to the Parent Company’s financial position, results of operations and cash flows on a stand-alone basis:

BALANCE SHEETS

(unaudited)

	September 30, 2017			December 31, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	2
Accounts receivable from related companies	64			55
Other current assets	2			—
Total current assets	66			57
Property, plant and equipment, net	27			36
Advances to and investments in unconsolidated affiliates	6,031			5,088
Intangible assets, net	—			1
Goodwill	9			9
Other non-current assets, net	17			10
Total assets	$	6,150		$	5,201
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities:
Accounts payable	$	—		$	1
Accounts payable to related companies	—			22
Interest payable	79			66
Accrued and other current liabilities	3			3
Total current liabilities	82			92
Long-term debt, less current maturities	6,684			6,358
Long-term notes payable – related companies	574			443
Other non-current liabilities	2			2
Commitments and contingencies
Partners’ capital:
General Partner	(3		)	(3		)
Limited Partners:
Common Unitholders	(1,566		)	(1,871		)
Series A Convertible Preferred Units	377			180
Total partners’ deficit	(1,192		)	(1,694		)
Total liabilities and equity	$	6,150		$	5,201

STATEMENTS OF OPERATIONS

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES(1)	$	(3	)	$	(75	)	$	(25	)	$	(156	)
OTHER INCOME (EXPENSE):
Interest expense, net	(88		)	(81		)	(257		)	(244		)
Equity in earnings of unconsolidated affiliates	343			367			1,012			1,166
Losses on extinguishments of debt	—			—			(25		)	—
Other, net	—			(2		)	(2		)	(4		)
NET INCOME	252			209			703			762
General Partner’s interest in net income	1			—			2			2
Convertible Unitholders’ interest in income	11			2			25			3
Limited Partners’ interest in net income	$	240		$	207		$	676		$	757

⁽¹⁾  Prior periods include management fees paid by ETE to ETP, which management fees will no longer be paid subsequent to March 31, 2017.

STATEMENTS OF CASH FLOWS

(unaudited)

	Nine Months Ended September 30,
	2017			2016
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES	$	620		$	718
CASH FLOWS FROM INVESTING ACTIVITIES:
Contributions to unconsolidated affiliate	(861		)	(70		)
Capital expenditures	(1		)	(15		)
Contributions in aid of construction costs	7			—
Net cash used in investing activities	(855		)	(85		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings	2,116			180
Principal payments on debt	(1,795		)	(155		)
Proceeds from affiliate	131			129
Distributions to partners	(752		)	(780		)
Units issued for cash	568			—
Debt issuance costs	(35		)	—
Net cash provided by (used in) financing activities	233			(626		)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(2		)	7
CASH AND CASH EQUIVALENTS, beginning of period	2			1
CASH AND CASH EQUIVALENTS, end of period	$	—		$	8