Energy Transfer 2015 Annual Report Download - page 38

Table of Contents
• the price of natural gas, NGLs, crude oil and products;
• the relationship between natural gas, NGL and crude oil prices;
• the amount of cash distributions we receive with respect to the Sunoco LP and Sunoco Logistics 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.
We may sell additional limited partner interests, diluting existing interests of Unitholders.
Our partnership agreement allows us to issue an unlimited number of additional limited partner interests, including securities senior to the Common Units,
without the approval of our Unitholders. The issuance of additional Common Units or other equity securities will have the following effects:
• the current proportionate ownership interest of our Unitholders in us will decrease;
• the amount of cash available for distribution on each Common Unit or partnership security may decrease;
• the ratio of taxable income to distributions may increase;
• the relative voting strength of each previously outstanding Common Unit may be diminished; and
• the market price of the Common Units or partnership securities may decline.
Sunoco Logistics and Sunoco LP may issue additional common units, which may increase the risk that Sunoco Logistics or Sunoco LP will not have
sufficient available cash to maintain or increase their per unit distribution level.
Sunoco Logistics’ and Sunoco LP’s partnership agreements allow the issuance of an unlimited number of additional limited partner interests. The issuance of
additional common units or other equity securities by Sunoco Logistics or Sunoco LP will have the following effects:
• Unitholders’ current proportionate ownership interest in Sunoco Logistics will decrease;
• the amount of cash available for distribution on each common unit or partnership security may decrease;
32