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# Energy Transfer Partners, L.P. Message Board

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• rrb1981 rrb1981 Feb 20, 2010 2:05 PM Flag

## DCF for 4Q '09

I set up my spreadsheet with a line for each tier of the take.

The 2% tier is capped at \$1.10/unit, or \$.275/unit per q. So, ETE receives 2% of whatever amount leaves the LP with \$.275 quarterly. So, you divide by .98 then subtract the \$1.10. That means the GP collects 2.25 cents per unit per year for the 2% tier.

Then the 15% tier kicks in. It runs from \$1.10 to \$1.27. So, you take the \$1.27 minus \$1.10 and divide that amount by .85 and then subtract \$.17. The remaining amount goes to the GP.

Then you move to the 25% tier which runs from \$1.27 to \$1.65. so that means you divide \$.38 by .75. That leaves \$.126 per unit for the GP.

Finally, the 50% tier is the easiest. It begins at \$1.65, so you take whatever the current annualized distribution, subtract \$1.65 and the GP gets that amount (no dividing necessary as it is a equal split).

You then sum all of the GP takes together, multiply by the number of units outstanding. The sum of all of those takes is around \$2.10. Multiplied by 177 million units outstanding means the GP collects a total of 371 million per year of around 93 million per Q (this is about 1 million off from the published report, or off by 1.1%).

You then add that amount to the amount the LPs collect, which is 3.58 per unit on 177 million units, or 633 million. That is a total of 1.004 billion needed annually or 251 million needed quarterly. As they had 230 million in DCF, they fell short by 21 million.

Hope everyone understands the math, it is much prettier in tabular form.

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