Energy Transfer 2010 Annual Report Download - page 38

If we do not make acquisitions on economically acceptable terms, our future growth could be limited.
Our results of operations and our ability to grow and to increase distributions to Unitholders will depend in part
on our ability to make acquisitions that are accretive to our distributable cash flow per unit.
We may be unable to make accretive acquisitions for any of the following reasons, among others:
• because we are unable to identify attractive acquisition candidates or negotiate acceptable purchase contracts
with them;
• because we are unable to raise financing for such acquisitions on economically acceptable terms; or
• because we are outbid by competitors, some of which are substantially larger than us and have greater
financial resources and lower costs of capital then we do.
Furthermore, even if we consummate acquisitions that we believe will be accretive, those acquisitions may in
fact adversely affect our results of operations or result in a decrease in distributable cash flow per unit. Any
acquisition involves potential risks, including the risk that we may:
• fail to realize anticipated benefits, such as new customer relationships, cost-savings or cash flow
enhancements;
• decrease our liquidity by using a significant portion of our available cash or borrowing capacity to finance
acquisitions;
• significantly increase our interest expense or financial leverage if we incur additional debt to finance
acquisitions;
• encounter difficulties operating in new geographic areas or new lines of business;
• incur or assume unanticipated liabilities, losses or costs associated with the business or assets acquired for
which we are not indemnified or for which the indemnity is inadequate;
• be unable to hire, train or retrain qualified personnel to manage and operate our growing business and assets;
• less effectively manage our historical assets, due to the diversion of management’s attention from other
business concerns; or
• incur other significant charges, such as impairment of goodwill or other intangible assets, asset devaluation
or restructuring charges.
If we consummate future acquisitions, our capitalization and results of operations may change significantly. As
we determine the application of our funds and other resources, Unitholders will not have an opportunity to
evaluate the economics, financial and other relevant information that we will consider.
If we do not continue to construct new pipelines, our future growth could be limited.
During the past several years, we have constructed several new pipelines, and are currently involved in
constructing several new pipelines. Our results of operations and ability to grow and to increase distributable
cash flow per unit will depend, in part, on our ability to construct pipelines that are accretive to our distributable
cash flow. We may be unable to construct pipelines that are accretive to distributable cash flow for any of the
following reasons, among others:
• we are unable to identify pipeline construction opportunities with favorable projected financial returns;
• we are unable to raise financing for our identified pipeline construction opportunities; or
• we are unable to secure sufficient natural gas transportation commitments from potential customers due to
competition from other pipeline construction projects or for other reasons.
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