Market Overview

Energy Transfer Partners Reports Third Quarter Results

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Energy Transfer Partners, L.P. (NYSE:ETP) ("ETP" or the
"Partnership") today reported its financial results for the quarter
ended September 30, 2017. For the three months ended September 30, 2017,
net income was $761 million and Adjusted EBITDA was $1.74 billion.
Adjusted EBITDA increased $354 million compared to the three months
ended September 30, 2016, reflecting an increase of $227 million in
Adjusted EBITDA from the crude oil transportation and services segment,
as well as significantly higher results from several of the other
segments, as discussed in the segment results analysis below. Net income
increased $623 million compared to the three months ended September 30,
2016, primarily due to increased operating income and higher equity in
earnings from unconsolidated affiliates, as well as the impact of a
non-cash impairment recorded in the prior year on an investment in an
unconsolidated affiliate. Distributable Cash Flow attributable to
partners, as adjusted, for the three months ended September 30, 2017
totaled $1.05 billion, an increase of $226 million compared to the three
months ended September 30, 2016 (on a pro forma basis for the Sunoco
Logistics merger completed in April 2017), primarily due to the increase
in Adjusted EBITDA.

ETP's other recent key accomplishments include the following:

  • In October 2017, ETP announced a quarterly distribution of $0.565 per
    unit ($2.26 annualized) on ETP common units for the quarter ended
    September 30, 2017.
  • In October 2017, ETP completed the previously announced contribution
    transaction with a fund managed by Blackstone Energy Partners and
    Blackstone Capital Partners, pursuant to which ETP exchanged a 49.9%
    interest in the holding company that owns 65% of the Rover pipeline.
  • In August 2017, the Partnership issued 54 million ETP common units in
    an underwritten public offering. Net proceeds of $997 million from the
    offering were used by the Partnership to repay amounts outstanding
    under its revolving credit facilities, to fund capital expenditures
    and for general partnership purposes.
  • In September 2017, Sunoco Logistics Partners Operations L.P., a
    subsidiary of ETP, issued $750 million aggregate principal amount of
    4.00% senior notes due 2027 and $1.50 billion aggregate principal
    amount of 5.40% senior notes due 2047. The $2.22 billion net proceeds
    from the offering were used to redeem all of the $500 million
    aggregate principal amount of ETLP's 6.5% senior notes due 2021, to
    repay borrowings outstanding under the Sunoco Logistics Credit
    Facility and for general partnership purposes. Also, in October 2017,
    ETP redeemed all of the outstanding $700 million of 5.5% senior notes
    due 2023 previously issued by Regency Energy Partners LP.
  • As of September 30, 2017, ETP had approximately $2.1 billion
    outstanding under its aggregate $6.25 billion revolving credit
    facilities and its leverage ratio, as defined by the legacy Sunoco
    Logistics credit agreement, was 4.16x.

An analysis of ETP's segment results and other supplementary data is
provided after the financial tables shown below. ETP has scheduled a
conference call for 8:00 a.m. Central Time, Wednesday, November 8, 2017
to discuss the third quarter 2017 results. The conference call will be
broadcast live via an internet webcast, which can be accessed through www.energytransfer.com
and will also be available for replay on ETP's website for a limited
time.

Energy Transfer Partners, L.P. (NYSE:ETP) is a master limited
partnership that owns and operates one of the largest and most
diversified portfolios of energy assets in the United States.
Strategically positioned in all of the major U.S. production basins, ETP
owns and operates a geographically diverse portfolio of complementary
natural gas midstream, intrastate and interstate transportation and
storage assets; crude oil, natural gas liquids (NGL) and refined product
transportation and terminalling assets; NGL fractionation assets; and
various acquisition and marketing assets. ETP's general partner is owned
by Energy Transfer Equity, L.P. (NYSE:ETE). For more information, visit
the Energy Transfer Partners, L.P. website at www.energytransfer.com.

Energy Transfer Equity, L.P. (NYSE:ETE) is a master limited
partnership that owns the general partner and 100% of the incentive
distribution rights (IDRs) of Energy Transfer Partners, L.P. (NYSE:ETP)
and Sunoco LP (NYSE:SUN). ETE also owns Lake Charles LNG Company. On a
consolidated basis, ETE's family of companies owns and operates a
diverse portfolio of natural gas, natural gas liquids, crude oil and
refined products assets, as well as retail and wholesale motor fuel
operations and LNG terminalling. For more information, visit the Energy
Transfer Equity, L.P. website at www.energytransfer.com.

Forward-Looking Statements

This news release may include certain statements concerning expectations
for the future that are forward-looking statements as defined by federal
law. Such forward-looking statements are subject to a variety of known
and unknown risks, uncertainties, and other factors that are difficult
to predict and many of which are beyond management's control. An
extensive list of factors that can affect future results are discussed
in the Partnership's Annual Report on Form 10-K and other documents
filed from time to time with the Securities and Exchange Commission. The
Partnership undertakes no obligation to update or revise any
forward-looking statement to reflect new information or events.

The information contained in this press release is available on our
website at www.energytransfer.com.

 
 

ENERGY TRANSFER PARTNERS, L.P. AND
SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(unaudited)

 

 
    September 30,     December 31,
2017

2016 (a)

ASSETS
 
Current assets $ 5,780 $ 5,729
 
Property, plant and equipment, net 56,972 50,917
 
Advances to and investments in unconsolidated affiliates 4,221 4,280
Other non-current assets, net 752 672
Intangible assets, net 5,379 4,696
Goodwill   3,907   3,897  
Total assets $ 77,011 $ 70,191  
 
LIABILITIES AND EQUITY
 
Current liabilities $ 6,886 $ 6,203
 
Long-term debt, less current maturities 33,630 31,741
Long-term notes payable – related company 250
Non-current derivative liabilities 132 76
Deferred income taxes 4,374 4,394
Other non-current liabilities 1,111 952
 
Commitments and contingencies
Series A Preferred Units 33
Redeemable noncontrolling interests
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