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ENERGY TRANSFER EQUITY L P Reports Operating Results (10-Q)

November 07, 2011 | About:
10qk

10qk

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ENERGY TRANSFER EQUITY L P (ETE) filed Quarterly Report for the period ended 2011-09-30.

Energy Transfer Equity L.p. has a market cap of $8.38 billion; its shares were traded at around $37.58 with a P/E ratio of 23.94 and P/S ratio of 1.27. The dividend yield of Energy Transfer Equity L.p. stocks is 6.65%. Energy Transfer Equity L.p. had an annual average earning growth of 19.5% over the past 5 years.

Highlight of Business Operations:

Equity in Earnings of Affiliates. Equity in earnings of affiliates represents earnings of the Parent Company related to its investments in ETP and Regency. The Parent Company recorded equity in earnings of ETP of $95.4 million and $99.8 million for the three months ended September 30, 2011 and 2010, respectively, and $355.1 million and $322.0 million for the nine months ended September 30, 2011 and 2010, respectively. An analysis of ETP s operating results is included in “Segment Operating Results” below. The Parent Company recorded equity in earnings of Regency of $7.2 million and $2.5 million for the three months ended September 30, 2011 and 2010, respectively, and $14.7 million and $2.1 million for the nine months ended September 30, 2011 and 2010, respectively, which represented only the period subsequent to the Parent Company s acquisition of a controlling interest in Regency on May 26, 2010.

Revenues generated by ETP s interstate transportation systems increased $45.4 million and $117 million, respectively, for the three and nine months ended September 30, 2011 compared to the prior period primarily as a result of the Tiger pipeline being placed into service in December 2010 with an additional expansion placed in service on August 1, 2011. Increased revenue from the Tiger pipeline was partially offset by decreased revenue from the Transwestern pipeline.

Equity in Earnings of Affiliates. ETP's equity in earnings of affiliates for the three and nine months ended September 30, 2011 primarily reflected equity in earnings related to Fayetteville Express Pipeline LLC (“FEP”). Equity in earnings of affiliates for the nine months ended September 30, 2010 were primarily related to Midcontinent Express Pipeline LLC (“MEP”), for which substantially all of ETP's interest was transferred on May 26, 2010 to Regency.

Equity in Earnings of Affiliates. For the three months ended September 30, 2011 compared to the three months ended September 30, 2010, Regency's equity in earnings of affiliates increased primarily due to Regency's acquisition of its 30% interest in Lone Star in May 2011.

The principal sources of the Parent Company s cash flow are its direct and indirect investments in the limited partner and general partner interests in ETP and Regency. The amount of cash that ETP and Regency distribute to their partners, including the Parent Company, each quarter is based on earnings from their respective business activities and the amount of available cash, as discussed below.

Read the The complete Report

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