Energy Transfer 2010 Annual Report Download - page 135

ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollar amounts, except per unit data, are in thousands)
1. OPERATIONS AND ORGANIZATION:
The consolidated financial statements and notes thereto of Energy Transfer Partners, L.P., and its
subsidiaries (“Energy Transfer Partners,” the “Partnership,” “we” or “ETP”) presented herein for the years
ended December 31, 2010, 2009 and 2008, have been prepared in accordance with accounting principles
generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of
the Securities and Exchange Commission (“SEC”). We consolidate all majority-owned subsidiaries. All
significant intercompany transactions and accounts are eliminated in consolidation. Management has
evaluated subsequent events through the date the financial statements were issued.
We also own varying undivided interests in certain pipelines. Ownership of these pipelines has been
structured as an ownership of an undivided interest in assets, not as an ownership interest in a partnership,
limited liability company, joint venture or other forms of entities. Each owner controls marketing and
invoices separately, and each owner is responsible for any loss, damage or injury that may occur to their
own customers. As a result, we apply proportionate consolidation for our interests in these entities.
Certain prior period amounts have been reclassified to conform to the 2010 presentation. These
reclassifications had no impact on net income or total partners’ capital.
We are managed by our general partner, Energy Transfer Partners GP, L.P. (our “General Partner” or “ETP
GP”), which is in turn managed by its general partner, Energy Transfer Partners, L.L.C. (“ETP LLC”).
Energy Transfer Equity, L.P., a publicly traded master limited partnership (“ETE”), owns ETP LLC, the
general partner of our General Partner. The consolidated financial statements of the Partnership presented
herein include our operating subsidiaries described below.
Business Operations
In order to simplify the obligations of Energy Transfer Partners, under the laws of several jurisdictions in
which we conduct business, our activities are primarily conducted through our operating subsidiaries
(collectively the “Operating Companies”) as follows:
• La Grange Acquisition, L.P., which conducts business under the assumed name of Energy Transfer
Company (“ETC OLP”), a Texas limited partnership engaged in midstream and intrastate
transportation and storage natural gas operations. ETC OLP owns and operates, through its
subsidiaries, natural gas gathering systems, intrastate natural gas pipeline systems and gas processing
plants and is engaged in the business of purchasing, gathering, transporting, processing, and marketing
natural gas and NGLs in the states of Texas, Louisiana, New Mexico, Utah, Colorado and West
Virginia. Our intrastate transportation and storage operations primarily focus on transporting natural
gas in Texas through our Oasis pipeline, ET Fuel System, East Texas pipeline and HPL System. Our
midstream operations focus on the gathering, compression, treating, conditioning and processing of
natural gas, primarily on or through our Southeast Texas System and North Texas System, and
marketing activities. We also own and operate natural gas gathering pipelines and conditioning
facilities in the Piceance-Uinta Basin of Colorado and Utah.
• Energy Transfer Interstate Holdings, LLC (“ET Interstate”), a Delaware limited liability company with
revenues consisting primarily of fees earned from natural gas transportation services and operational
gas sales. ET Interstate is the parent company of:
• Transwestern Pipeline Company, LLC (“Transwestern”), a Delaware limited liability
company engaged in interstate transportation of natural gas. Transwestern’s revenues consist
primarily of fees earned from natural gas transportation services and operational gas sales.
F-9