Must-know: An overview of Energy Transfer Equity
Overview: An investor's guide to the Energy Transfer Equity group (Part 1 of 10)
Energy Transfer Equity
Energy Transfer Equity L.P. (ETE) is a master limited partnership (or MLP). It provides natural gas, natural gas liquids (or NGLs), and crude oil midstream, transportation, and storage services through its subsidiary companies.
Its subsidiary companies are:
Energy Transfer Partners (ETP)
Regency Energy Partners (RGP)
Sunoco Logistics (SXL)
Organizational structure
ETE owns general partner (or GP) and 100% incentive distribution rights (or IDRs) in ETP. ETP owns GP. It also has IDR interest in SXL.
ETE is also the GP. It has 100% IDRs in RGP. The following parts of this series will discuss these companies in detail.
Asset overview
A consolidated ETE owns and operates ~71,000 miles of natural gas, NGLs, refined products, and crude oil pipelines.
Energy Transfer Partners – Through ETP’s midstream operations, ETE owns and operates ~35,000 miles of natural gas and NGL pipelines. Also, ETP has a storage capacity of 154 billion cubic feet (or bcf). It has 29 natural gas facilities that include four processing plants, 15 treating plants, two conditioning plants, four gas storage facilities, and four NGL facilities.
Sunoco Logistics – Because ETP controls SXL through its GP interest, Sunoco Logistics’ operations are consolidated into ETP. Key assets include ~5,400 miles of crude oil pipelines, ~2,500 miles of refined product pipelines, and 39 active refined products marketing terminals.
Regency Partners – Through Regency, ETE owns ~19,000 miles of natural gas gathering and transportation pipelines. This includes interests in the Midcontinent Express Pipeline (or MEP). It also has ~2.7 million of gathering and processing throughput—million British thermal units per day. Also, Regency owns 30% of Lone Star NGL. ETP holds the remaining 70% of Lone Star NGL.
Key MLP exchange-traded fund (or ETF)
ETP, RGP, and SXL are all components of the Alerian MLP ETF (AMLP). It tracks the performance of energy master limited partnerships (or MLPs). ETE, is a component of the First Trust North American Energy Infrastructure Fund (EMLP).
Check out our primer on MLP basics here.
The next parts in this series will discuss ETE and its subsidiaries in more detail.
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