Energy Transfer 2013 Annual Report Download - page 178

Table of Contents
Citrus Corp.
On March 26, 2012, ETE consummated the acquisition of Southern Union and, concurrently with the closing of the Southern Union acquisition,
CrossCountry, a subsidiary of Southern Union that indirectly owned a 50% interest in Citrus, merged with a subsidiary of ETP and, in connection
therewith, ETP paid approximately $1.9 billion in cash and issued $105 million of ETP Common Units (the “Citrus Acquisition”) to a subsidiary of
ETE. As a result of the consummation of the Citrus Acquisition, ETP owns CrossCountry, which in turn owns a 50% interest in Citrus. The other 50%
interest in Citrus is owned by a subsidiary of Kinder Morgan, Inc. Citrus owns 100% of FGT, a natural gas pipeline system that originates in Texas and
delivers natural gas to the Florida peninsula.
We recorded our investment in Citrus at $2.0 billion, which exceeded our proportionate share of Citrus’ equity by $1.03 billion, all of which is treated as
equity method goodwill due to the application of regulatory accounting. The carrying amount of our investment in Citrus was $1.89 billion and $1.98
billion as of December 31, 2013 and 2012, respectively, and was reflected in our interstate transportation and storage segment.
AmeriGas Partners, L.P.
As discussed in Note 3, on January 12, 2012, we received approximately 29.6 million AmeriGas common units in connection with the contribution of
our propane operations. On July 12, 2013, we sold 7.5 million AmeriGas common units for net proceeds of $346 million, and as of December 31, 2013,
we owned 22.1 million AmeriGas common units representing an approximate 24% limited partner interest.
The carrying amount of our investment in AmeriGas was $746 million and $1.02 billion as of December 31, 2013 and 2012, respectively, and was
reflected in our all other segment. As of December 31, 2013, our investment in AmeriGas reflected $439 million in excess of our proportionate share of
AmeriGas’ limited partners’ capital. Of this excess fair value, $184 million is being amortized over a weighted average period of 14 years, and $255
million is being treated as equity method goodwill and non-amortizable intangible assets.
In January 2014, we sold 9.2 million AmeriGas common units for net proceeds of $381 million. Net proceeds from this sale were used to repay
borrowings under the ETP Credit Facility and general partnership purposes.
FEP
We have a 50% interest in FEP, a 50/50 joint venture with KMP. FEP owns the Fayetteville Express pipeline, an approximately 185-mile natural gas
pipeline that originates in Conway County, Arkansas, continues eastward through White County, Arkansas and terminates at an interconnect with
Trunkline Gas Company in Panola County, Mississippi. The carrying amount of our investment in FEP was $144 million and $159 million as of
December 31, 2013 and 2012, respectively, and was reflected in our interstate transportation and storage segment.
Summarized Financial Information
The following tables present aggregated selected balance sheet and income statement data for our unconsolidated affiliates, FEP, AmeriGas, Citrus and
Regency (on a 100% basis) for all periods presented:
December 31,
2013
2012
Current assets $ 1,372
$ 878
Property, plant and equipment, net 12,320
8,063
Other assets 6,478
2,529
Total assets $20,170
$11,470
Current liabilities $1,455
$1,605
Non-current liabilities 10,286
6,143
Equity 8,429
3,722
Total liabilities and equity $20,170
$11,470
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