Energy Transfer 2013 Annual Report Download - page 33

Table of Contents
ITEM 1A. RISK FACTORS
In addition to risks and uncertainties in the ordinary course of business that are common to all businesses, important factors that are specific to our structure
as a limited partnership, our industry and our company could materially impact our future performance and results of operations. We have provided below a
list of these risk factors that should be reviewed when considering an investment in our securities. Panhandle and Sunoco Logistics file Annual Reports on
Form 10-K that include risk factors that can be reviewed for further information. The risk factors set forth below, and those included in Panhandle’s and
Sunoco Logistics’ Annual Report on Form 10-K, are not all the risks we face and other factors currently considered immaterial or unknown to us may impact
our future operations.
Risks Inherent in an Investment in Us
Cash distributions are not guaranteed and may fluctuate with our performance and other external factors.
The amount of cash we can distribute to holders of our Common Units or other partnership securities depends upon the amount of cash we generate from our
operations. The amount of cash we generate from our operations will fluctuate from quarter to quarter and will depend upon, among other things:
•the amount of natural gas, crude oil and refined products transported in our pipelines and gathering systems;
•the level of throughput in our processing and treating operations;
•the fees we charge and the margins we realize for our services;
•the price of natural gas, NGLs, crude oil and refined products;
•the relationship between natural gas, NGL and crude oil prices;
•the amount of cash distributions we receive with respect to the Regency, Sunoco Logistics and AmeriGas common units that we or our subsidiaries own;
•the weather in our operating areas;
•the level of competition from other midstream, transportation and storage and retail marketing companies and other energy providers;
•the level of our operating costs;
•prevailing economic conditions; and
•the level and results of our derivative activities.
In addition, the actual amount of cash we will have available for distribution will also depend on other factors, such as:
•the level of capital expenditures we make;
•the level of costs related to litigation and regulatory compliance matters;
•the cost of acquisitions, if any;
•the levels of any margin calls that result from changes in commodity prices;
•our debt service requirements;
•fluctuations in our working capital needs;
•our ability to borrow under our revolving credit facility;
•our ability to access capital markets;
•restrictions on distributions contained in our debt agreements; and
•the amount of cash reserves established by our General Partner in its discretion for the proper conduct of our business.
Because of all these factors, we cannot guarantee that we will have sufficient available cash to pay a specific level of cash distributions to our Unitholders.
Furthermore, Unitholders should be aware that the amount of cash we have available for distribution depends primarily upon our cash flow and is not solely a
function of profitability, which is affected by non-cash items. As a result, we may declare and/or pay cash distributions during periods when we record net
losses.
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