Exhibit 99.1
ENERGY TRANSFER EQUITY REPORTS
QUARTERLY AND ANNUAL RESULTS
Dallas February 16, 2009
Energy Transfer Equity, L.P. (NYSE:ETE) today reported
Distributable Cash of $114.9 million for the quarter ended December 31, 2008. Distributable Cash
is a non-GAAP measure, as explained below.
ETEs net income for the year ended December 31, 2008 increased by $35.2 million to $375.0 million
as compared to $339.8 million for the twelve months ended November 30, 2007. ETEs net income for
the fourth quarter ended December 31, 2008 was $22.6 million compared to $51.5 million for the
quarter ended November 30, 2007. The fourth quarter 2008 results reflect unrealized losses on
certain interest rate derivatives of $109.7 million, compared to unrealized losses of $30.2 million
for the three months ended November 30, 2007. Excluding these unrealized losses, net income
increased for both the quarter and the full year due principally to increased earnings of Energy
Transfer Partners, L.P. (ETP).
ETE changed its fiscal year from August 31st to December 31st in November
2007. Quarterly results are compared to the three months ended November 30, 2007, which was
included in the transition period. Annual results are compared to the twelve months ended November
30, 2007.
The principal sources of cash flow of ETE are distributions it receives from its investments in the
limited and general partner interests in ETP. ETE currently has no other operating activities
apart from those conducted by the operating subsidiaries within ETP. ETEs principal uses of cash
are for administrative expenses, debt service and distributions to its general and limited
partners.
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-generally accepted accounting
principle (non-GAAP) financial measure of Distributable Cash. The accompanying schedules provide
a reconciliation of this non-GAAP financial measure to its most directly comparable financial
measure calculated and presented in accordance with GAAP. The Partnerships Distributable Cash
should not be considered as an alternative to GAAP financial measures such as net income, cash flow
from operating activities, or any other GAAP measure of liquidity or financial performance.
Distributable Cash. The Partnership defines Distributable Cash as cash distributions
expected to be received from ETP in connection with the Partnerships investments in limited and
general partner interests of ETP, net of the Partnerships expenditures for general and
administrative costs and debt service. Distributable Cash is a significant liquidity measure used
by the Partnerships senior management to compare net cash flows generated by the Partnerships
equity investments in ETP to the distributions the Partnership expects to pay its unitholders.
Using this measure, the
Partnerships management can quickly compute the coverage ratio of estimated cash flows to planned
cash distributions.
The following information was filed by Energy Transfer Equity, L.P. (ETE) on Tuesday, February 17, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.