Energy Transfer 2013 Annual Report Download - page 188

Table of Contents
Distributions declared during the periods presented below are summarized as follows:
Quarter Ended
Record Date Payment Date
Rate
December 31, 2010
February 7, 2011 February 14, 2011
$ 0.89375
March 31, 2011
May 6, 2011 May 16, 2011
0.89375
June 30, 2011
August 5, 2011 August 15, 2011
0.89375
September 30, 2011
November 4, 2011 November 14, 2011
0.89375
December 31, 2011
February 7, 2012
February 14, 2012
0.89375
March 31, 2012
May 4, 2012
May 15, 2012
0.89375
June 30, 2012
August 6, 2012
August 14, 2012
0.89375
September 30, 2012
November 6, 2012
November 14, 2012
0.89375
December 31, 2012
February 7, 2013
February 14, 2013
0.89375
March 31, 2013
May 6, 2013
May 15, 2013
0.89375
June 30, 2013
August 5, 2013
August 14, 2013
0.89375
September 30, 2013
November 4, 2013
November 14, 2013
0.90500
December 31, 2013
February 7, 2014
February 14, 2014
0.92000
Following are incentive distributions ETE has agreed to relinquish:
•In conjunction with the Partnership’s Citrus Merger, ETE agreed to relinquish its rights to $220 million of incentive distributions from ETP that
ETE would otherwise be entitled to receive over 16 consecutive quarters beginning with the distribution paid on May 15, 2012.
•In conjunction with the Holdco Transaction in October 2012, ETE agreed to relinquish its right to $210 million of incentive distributions from ETP
that ETE would otherwise be entitled to receive over 12 consecutive quarters beginning with the distribution paid on November 14, 2012.
•As discussed in Note 3, in connection with the Holdco Acquisition on April 30, 2013, E TE also agreed to relinquish incentive distributions on the
newly issued Common Units for the first eight consecutive quarters beginning with the distribution paid on August 14, 2013, and 50% of the
incentive distributions for the following eight consecutive quarters.
In addition, the incremental distributions on the Class H Units, which are referred to in “Class H Units” above, were intended to offset a portion of the
incentive distribution relinquishments previously granted by ETE to the Partnership. In connection with the issuance of the Class H Units, ETE and the
Partnership also agreed to certain adjustments to the incremental distributions on the Class H Units in order to ensure that the net impact of the incentive
distribution relinquishments (a portion of which is variable) and the incremental distributions on the Class H Units are fixed amounts for each quarter for
which the incentive distribution relinquishments and incremental distributions on the Class H Units are in effect.
In addition to the amounts above, in connection with the Partnership’s transfer of Trunkline LNG to ETE in February 2014, ETE agreed to provide
additional subsidies to ETP through its relinquishment of incentive distributions of $50 million, $50 million, $45 million and $35 million for the years
ending December 31, 2016, 2017, 2018 and 2019, respectively.
Following is a summary of the net amounts by which these incentive distribution relinquishments and incremental distributions on Class H Units would
reduce the total distributions that would potentially be made to ETE in future quarters:
Quarters Ending
March 31
June 30
September 30
December 31
Total Year
2014
$26.5
$26.5
$26.5
$26.5
$106.0
2015
12.5
12.5
13.0
13.0
51.0
2016
18.0
18.0
18.0
18.0
72.0
2017
12.5
12.5
12.5
12.5
50.0
2018
11.25
11.25
11.25
11.25
45.0
2019
8.75
8.75
8.75
8.75
35.0
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