Energy Transfer Partners L.P. (ETP, Financial) filed Quarterly Report for the period ended 2009-03-31.
Energy Transfer Partners L.P. is a publicly traded partnership owning and operating a diversified portfolio of energy assets. The Partnership's natural gas operations includes miles of natural gas gathering and transportation pipelines natural gas treating and processing assets located in Texas and Louisiana and three natural gas storage facilities located in Texas. Energy Transfer Partners L.P. has a market cap of $6.38 billion; its shares were traded at around $40.15 with a P/E ratio of 10.97 and P/S ratio of 0.69. The dividend yield of Energy Transfer Partners L.P. stocks is 8.9%.
In addition to our acquisitions, our internal growth projects consist primarily of the construction of natural gas transmission pipelines, both intrastate and interstate. From September 1, 2003 through March 31, 2009, we made growth capital expenditures, excluding capital contributions made in connection with the Midcontinent Express pipeline (MEP) project, of approximately $4.6 billion, of which more than $3.9 billion was related to natural gas transmission pipelines, and we anticipate growth capital expenditures of an additional $595.0 million to $655.0 million during the last nine months of 2009, excluding capital contributions expected to be made in connection with the Midcontinent Express pipeline and Fayetteville Express pipeline (FEP) joint ventures, which are expected to total $545.0 million to $585.0 million for the same period. If Midcontinent Express pipeline obtains long-term financing in 2009 following completion of the base project, an additional capital contribution of $200.0 million to $250.0 million may be required.
In light of the current conditions in the capital markets, and based on our projected growth capital expenditures and capital contributions to joint venture entities, we have taken significant steps to preserve our liquidity position including, but not limited to, reducing discretionary capital expenditures, maintaining our cash distribution rate at $3.575 per Common Unit on an annualized basis since the second quarter of 2008, and continuing to appropriately manage operating and administrative costs. We have also recently increased the available capacity under the ETP Credit Facility by using approximately $225.9 million in net proceeds from our January 2009 Common Units offering and $993.6 million in net proceeds from a $1.0 billion senior notes offering in April 2009 to repay all outstanding borrowings under this facility. Additionally, in April 2009, we closed a 9,775,000 Common Units offering which provided us with net proceeds of approximately $352.4 million which we intend to use for funding capital expenditures and capital contributions to joint ventures related to pipeline construction projects. As of March 31, 2009, in addition to approximately $106.0 million of cash on hand, we had available capacity under the ETP Credit Facility of approximately $1.06 billion. On a pro forma basis, as of March 31, 2009, taking into account net proceeds of approximately $993.6 million from our April 2009 debt offering and net proceeds of approximately $352.4 million from our April 2009 Common Units offering, we had $1.94 billion of available capacity under the ETP Credit Facility and cash on hand of approximately $570.0 million. Based on our current estimates, we expect to utilize these resources, along with cash from operations, to fund our announced growth capital expenditures and working capital needs without having to access the capital markets until the latter half of 2010.
Other Income, Net. The decrease is primarily due to contributions in aid of construction which exceeded our project costs by $7.7 million for the three months ended March 31, 2008 compared to $0.1 million for the three months ended March 31, 2009.
Operating Expenses. Intrastate transportation and storage operating expenses decreased primarily due to a decrease in consumption expense of $16.4 million, which was principally affected by natural gas price changes between periods. Offsetting the decrease was an increase in ad valorem taxes of $9.8 million, increased pipeline maintenance expenses of $0.7 million, and increased operational overhead expenses of $0.7 million.
Selling, General and Administrative Expenses. Intrastate transportation and storage selling, general and administrative expenses increased primarily due to increased allocated overhead expense of $4.2 million and increased professional fees of $4.0 million offset by a decrease in employee-related expenses of $1.5 million.
Read the The complete ReportETP is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Energy Transfer Partners L.P. is a publicly traded partnership owning and operating a diversified portfolio of energy assets. The Partnership's natural gas operations includes miles of natural gas gathering and transportation pipelines natural gas treating and processing assets located in Texas and Louisiana and three natural gas storage facilities located in Texas. Energy Transfer Partners L.P. has a market cap of $6.38 billion; its shares were traded at around $40.15 with a P/E ratio of 10.97 and P/S ratio of 0.69. The dividend yield of Energy Transfer Partners L.P. stocks is 8.9%.
Highlight of Business Operations:
During the past several years we have been successful in completing several acquisitions and business combinations, including the combination of the retail propane operations of Heritage Propane Partners, L.P. and the midstream and intrastate transportation and storage operations of ETC OLP in January 2004. Subsequent to this combination, we have made numerous significant acquisitions, with assets totaling $3.87 billion in our natural gas operations and $848.2 million in our propane operations.In addition to our acquisitions, our internal growth projects consist primarily of the construction of natural gas transmission pipelines, both intrastate and interstate. From September 1, 2003 through March 31, 2009, we made growth capital expenditures, excluding capital contributions made in connection with the Midcontinent Express pipeline (MEP) project, of approximately $4.6 billion, of which more than $3.9 billion was related to natural gas transmission pipelines, and we anticipate growth capital expenditures of an additional $595.0 million to $655.0 million during the last nine months of 2009, excluding capital contributions expected to be made in connection with the Midcontinent Express pipeline and Fayetteville Express pipeline (FEP) joint ventures, which are expected to total $545.0 million to $585.0 million for the same period. If Midcontinent Express pipeline obtains long-term financing in 2009 following completion of the base project, an additional capital contribution of $200.0 million to $250.0 million may be required.
In light of the current conditions in the capital markets, and based on our projected growth capital expenditures and capital contributions to joint venture entities, we have taken significant steps to preserve our liquidity position including, but not limited to, reducing discretionary capital expenditures, maintaining our cash distribution rate at $3.575 per Common Unit on an annualized basis since the second quarter of 2008, and continuing to appropriately manage operating and administrative costs. We have also recently increased the available capacity under the ETP Credit Facility by using approximately $225.9 million in net proceeds from our January 2009 Common Units offering and $993.6 million in net proceeds from a $1.0 billion senior notes offering in April 2009 to repay all outstanding borrowings under this facility. Additionally, in April 2009, we closed a 9,775,000 Common Units offering which provided us with net proceeds of approximately $352.4 million which we intend to use for funding capital expenditures and capital contributions to joint ventures related to pipeline construction projects. As of March 31, 2009, in addition to approximately $106.0 million of cash on hand, we had available capacity under the ETP Credit Facility of approximately $1.06 billion. On a pro forma basis, as of March 31, 2009, taking into account net proceeds of approximately $993.6 million from our April 2009 debt offering and net proceeds of approximately $352.4 million from our April 2009 Common Units offering, we had $1.94 billion of available capacity under the ETP Credit Facility and cash on hand of approximately $570.0 million. Based on our current estimates, we expect to utilize these resources, along with cash from operations, to fund our announced growth capital expenditures and working capital needs without having to access the capital markets until the latter half of 2010.
Other Income, Net. The decrease is primarily due to contributions in aid of construction which exceeded our project costs by $7.7 million for the three months ended March 31, 2008 compared to $0.1 million for the three months ended March 31, 2009.
Operating Expenses. Intrastate transportation and storage operating expenses decreased primarily due to a decrease in consumption expense of $16.4 million, which was principally affected by natural gas price changes between periods. Offsetting the decrease was an increase in ad valorem taxes of $9.8 million, increased pipeline maintenance expenses of $0.7 million, and increased operational overhead expenses of $0.7 million.
Selling, General and Administrative Expenses. Intrastate transportation and storage selling, general and administrative expenses increased primarily due to increased allocated overhead expense of $4.2 million and increased professional fees of $4.0 million offset by a decrease in employee-related expenses of $1.5 million.
Read the The complete ReportETP is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
