Energy Transfer 2015 Annual Report Download - page 99

Table of Contents
Liquidity and Capital Resources
Our ability to satisfy our obligations and pay distributions to our Unitholders will depend on our future performance, which will be subject to prevailing
economic, financial, business and weather conditions, and other factors, many of which are beyond management’s control.
We currently expect the following capital expenditures in 2016 to be within the following ranges:
Growth
Maintenance
Low
High
Low
High
Direct(1):
Intrastate transportation and storage(2) $ 10
$ 20
$ 35
$ 40
Interstate transportation and storage(2)(3) 375
415
140
145
Midstream 1,200
1,250
110
120
Liquids transportation and services
NGL 1,150
1,200
25
30
Crude(3) 1,275
1,325
—
—
All other (including eliminations) 65
75
20
25
Total direct capital expenditures $ 4,075
$ 4,285
$ 330
$ 360
(1) Direct capital expenditures exclude those funded by our publicly traded subsidiary.
(2) Net of amounts forecasted to be financed at the asset level with non-recourse debt of approximately $325 million.
(3) Includes capital expenditures related to our proportionate ownership of the Bakken and Rover pipeline projects.
The assets used in our natural gas and liquids operations, including pipelines, gathering systems and related facilities, are generally long-lived assets and do
not require significant maintenance capital expenditures. Accordingly, we do not have any significant financial commitments for maintenance capital
expenditures in our businesses. From time to time we experience increases in pipe costs due to a number of reasons, including but not limited to, delays from
steel mills, limited selection of mills capable of producing large diameter pipe timely, higher steel prices and other factors beyond our control. However, we
include these factors in our anticipated growth capital expenditures for each year.
We generally fund maintenance capital expenditures and distributions with cash flows from operating activities. We generally fund growth capital
expenditures with proceeds of borrowings under credit facilities, long-term debt, the issuance of additional Common Units or a combination thereof.
As of December 31, 2015, in addition to $527 million of cash on hand, we had available capacity under the ETP Credit Facility of $2.24 billion. Based on
our current estimates, we expect to utilize capacity under the ETP Credit Facility, along with cash from operations, to fund our announced growth capital
expenditures and working capital needs through the end of 2016; however, we may issue debt or equity securities prior to that time as we deem prudent to
provide liquidity for new capital projects, to maintain investment grade credit metrics or other partnership purposes.
Sunoco Logistics’ primary sources of liquidity consist of cash generated from operating activities and borrowings under its $2.50 billion credit facility. At
December 31, 2015, Sunoco Logistics had available borrowing capacity of $1.94 billion under its revolving credit facility. Sunoco Logistics’ capital
position reflects crude oil and refined products inventories based on historical costs under the last-in, first-out (“LIFO”) method of accounting. Sunoco
Logistics periodically supplements its cash flows from operations with proceeds from debt and equity financing activities.
Cash Flows
Our internally generated cash flows may change in the future due to a number of factors, some of which we cannot control. These include regulatory changes,
the price for our products and services, the demand for such products and services, margin requirements resulting from significant changes in commodity
prices, operational risks, the successful integration of our acquisitions, and other factors.
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