Energy Transfer 2010 Annual Report Download - page 175

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14. QUARTERLY FINANCIAL DATA (UNAUDITED):
Summarized unaudited quarterly financial data is presented below. The sum of net income per Limited
Partner unit by quarter does not equal the net income per limited partner unit for the year due to the
computation of income allocation between the General Partner and Limited Partners and variations in the
weighted average units outstanding used in computing such amounts. HOLP’s and Titan’s businesses are
seasonal due to weather conditions in their service areas. Propane sales to residential and commercial
customers are affected by winter heating season requirements, which generally results in higher operating
revenues and net income during the period from October through March of each year and lower operating
revenues and either net losses or lower net income during the period from April through September of each
year. Sales to commercial and industrial customers are less weather sensitive. ETC OLP’s business is also
seasonal due to the operations of ET Fuel System and the HPL System. We expect margin related to the
HPL System operations to be higher during the periods from November through March of each year and
lower during the periods from April through October of each year due to the increased demand for natural
gas during the cold weather. However, we cannot assure that management’s expectations will be fully
realized in the future and in what time period due to various factors including weather, availability of natural
gas in regions in which we operate, competitive factors in the energy industry, and other issues.
Quarter Ended
Total YearMarch 31 June 30 September 30 December 31
2010:
Revenues $ 1,871,981 $ 1,267,706 $ 1,290,644 $ 1,454,496 $ 5,884,827
Gross profit 647,116 496,849 513,233 627,688 2,284,886
Operating income 344,338 199,184 208,147 306,502 1,058,171
Net income 240,111 42,843 107,387 226,881 617,222
Limited Partners’
interest in net income
(loss) 140,112 (47,756) 10,341 126,796 229,493
Basic net income per
limited partner unit
(loss) $ 0.74 $ (0.26) $ 0.05 $ 0.65 $ 1.20
Diluted net income per
limited partner unit
(loss) $ 0.74 $ (0.26) $ 0.05 $ 0.65 $ 1.19
2009:
Revenues $ 1,630,100 $ 1,151,817 $ 1,129,596 $ 1,505,782 $ 5,417,295
Gross profit 670,961 525,824 451,448 647,006 2,295,239
Operating income 360,853 219,220 177,347 370,187 1,127,607
Net income 307,167 150,738 72,456 261,181 791,542
Limited Partners’
interest in net income
(loss) 216,877 63,559 (16,471) 162,215 426,180
Basic net income per
limited partner unit
(loss) $ 1.37 $ 0.38 $ (0.10) $ 0.92 $ 2.53
Diluted net income per
limited partner unit
(loss) $ 1.37 $ 0.38 $ (0.10) $ 0.91 $ 2.53
For the three months ended June 30, 2010 and September 30, 2009, distributions paid for the period
exceeded net income by $213.3 million and $177.0 million, respectively. Accordingly, the distributions paid
to the General Partner, including incentive distributions, further exceeded net income, and as a result, a net
loss was allocated to the Limited Partners for the period.
F-49