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

August 08, 2012 | About:
Dr. John Price

10qk

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ENERGY TRANSFER EQUITY L P (ETE) filed Quarterly Report for the period ended 2012-06-30.

Energy Transfer Equity, L.p. has a market cap of $11.82 billion; its shares were traded at around $42 with a P/E ratio of 21.8 and P/S ratio of 1.4. The dividend yield of Energy Transfer Equity, L.p. stocks is 5.9%. Energy Transfer Equity, L.p. had an annual average earning growth of 18.3% over the past 5 years.

Highlight of Business Operations:

The tables below summarize by operating entity commodity-related financial derivative instruments, fair values and the effect of an assumed hypothetical 10% change in the underlying price of the commodity as of June 30, 2012 and December 31, 2011.

The fair values of the commodity-related financial positions have been determined using independent third party prices, readily available market information and appropriate valuation techniques. Non-trading positions offset physical exposures to the cash market; none of these offsetting physical exposures are included in the above tables. Price-risk sensitivities were calculated by assuming a theoretical 10% change (increase or decrease) in price regardless of term or historical relationships between the contractual price of the instruments and the underlying commodity price. Results are presented in absolute terms and represent a potential gain or loss in net income or in other comprehensive income. In the event of an actual 10% change in prompt month natural gas prices, the fair value of our total derivative portfolios may not change by 10% due to factors such as when the financial instrument settles and the location to which the financial instrument is tied (i.e., basis swaps) and the relationship between prompt month and forward months.

(1) Includes aggregate amounts for open positions related to Houston Ship Channel, Waha Hub, NGPL TexOk, West Louisiana Zone and Henry Hub locations.

Represents the impact on annual gross margin of a change in price of $0.01 per gallon of NGL and $1.00 per MMBtu of natural gas, excluding the effects of hedging and assuming normal operating conditions.

As of June 30, 2012, we and our subsidiaries had $4.31 billion of floating rate debt outstanding. A hypothetical change of 100 basis points would result in a change to interest expense of $43.1 million annually. We manage a portion of our interest rate exposure by utilizing interest rate swaps and similar arrangements. To the extent that we have debt with floating interest rates that are not hedged, our results of operations, cash flows and financial condition could be adversely affected by increases in interest rates. The following interest rate swaps were outstanding as of June 30, 2012 and December 31, 2011 (dollars in thousands), none of which are designated as hedges for accounting purposes:

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