Energy Transfer 2010 Annual Report Download - page 5

Unless the context requires otherwise, the Partnership, the Operating Companies, and their subsidiaries are
collectively referred to in this report as “we,” “us,” “ETP,” “Energy Transfer” or the “Partnership.”
Significant Achievements in 2010
Our significant 2010 achievements included the following, as discussed in more detail herein:
• Acquired a natural gas gathering company, which provides dehydration, treating, redelivery and
compression services on a 120-mile pipeline system in the Haynesville Shale for approximately $150.0
million in cash, excluding certain adjustments as defined in the purchase agreement. The gas gathering
system has 275 MMcf/d of capacity and 480 MMcf/d of treating capacity.
• Completed construction of the 42-inch Fayetteville Express pipeline ahead of our original timeline and
significantly below our original cost estimates. The Fayetteville Express pipeline is an approximately
185-mile interstate natural gas pipeline that originates near Conway County, Arkansas, continues eastward
through White County, Arkansas and terminates at an interconnect with Trunkline Gas Company in Panola
County, Mississippi. The pipeline has a capacity to transport up to 2.0 Bcf/d, which is supported by long-
term contracts ranging from 10 to 12 years. The Fayetteville Express pipeline is a 50/50 joint venture with
Kinder Morgan Energy Partners, L.P. (“KMP”).
• Completed construction of the Tiger pipeline ahead of our original timeline and significantly below our
original cost estimates. The Tiger pipeline is an approximately 175-mile interstate natural gas pipeline that
connects to our dual 42-inch pipeline system near Carthage, Texas, extends through the heart of the
Haynesville Shale and ends near Delhi, Louisiana, with interconnects to at least seven interstate pipelines at
various points in Louisiana. The pipeline has an initial capacity of 2.0 Bcf/d. On February 3, 2011, the
Federal Energy Regulatory Commission (“FERC”) approved a planned expansion project which will
increase the total capacity of the pipeline to 2.4 Bcf/d, all of which is sold under long-term contracts ranging
from 10 to 15 years.
• In December 2010, we completed the Lumberjack pipeline - a 63-mile natural gas pipeline to provide
additional transportation, gathering and treating services to the Haynesville Shale region. The pipeline
originates in Shelby County, Texas, and terminates in Nacogdoches County, Texas. This pipeline was placed
into partial service in August 2010, and full service began in December 2010. This project consists of 20-
and 24-inch pipe and has an initial capacity of 645 MMcf/d. The pipeline interconnects with two interstate
pipelines in addition to our Houston Pipe Line System (“HPL System”).
• In December 2010, we completed a 50-mile, 24-inch pipeline that originates in Northwest Webb County,
Texas and extends to our existing Houston pipeline rich gas gathering system in eastern Webb County,
Texas. The project in the Eagle Ford Shale, which we refer to as the Dos Hermanas pipeline, has a capacity
of approximately 400 MMcf/d. As part of the project, approximately 6,000 horsepower of compression will
be added to the HPL System.
• In September 2010, we placed in service our gathering system in the Marcellus Shale, and we were gathering
approximately 50 MMcf/d as of December 31, 2010 and anticipate demand volumes to increase throughout
2011.
• We increased our processing volumes and margins, primarily in North Texas as processing margins
improved in 2010, and we expect processing conditions to remain favorable in 2011.
• We issued an aggregate of 25,894,287 Common Units for total net proceeds of $1.15 billion primarily to
fund our internal growth projects and capital contributions to joint ventures and to manage our investment
grade metrics.
• We previously owned a 50% interest in the Midcontinent Express pipeline. On May 26, 2010, we transferred
substantially all of our interest in the Midcontinent Express pipeline to ETE in exchange for our redemption
of 12,273,830 Common Units previously held by ETE. This tax-efficient transfer of our joint venture interest
allowed for re-deployment of capital to other opportunities, several of which are mentioned above. ETE
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