Energy Transfer 2010 Annual Report Download - page 79

Year Ended December 31, 2009
Cash provided by operating activities during 2009 was $826.9 million and net income was $791.5 million. The
difference between net income and cash provided by operations during 2009 consisted of non-cash items totaling
$355.5 million (principally depreciation and amortization expense of $312.8 million and non-cash compensation
expense of $25.3 million), offset by net changes in operating assets and liabilities of $320.7 million.
Year Ended December 31, 2008
Cash provided by operating activities during 2008 was $1.26 billion. Net income was $866.0 million. The
difference between net income and the net cash provided by operations for 2008 consisted of non-cash items
totaling $286.7 million (principally depreciation and amortization expense of $262.2 million) and changes in
operating assets and liabilities of $99.8 million.
Investing Activities
Cash flows from investing activities primarily consist of cash amounts paid in acquisitions, capital expenditures,
and cash contributions to our joint ventures. Changes in capital expenditures between periods primarily result
from increases or decreases in our growth capital expenditures to fund our construction and expansion projects.
Following is a summary of investing activities by period:
Year Ended December 31, 2010
Cash used in investing activities during 2010 was $1.49 billion. Total capital expenditures (excluding the
allowance for equity funds used during construction) were $1.35 billion including changes in accruals of $37.6
million. Growth capital expenditures for 2010, before changes in accruals, were $429.8 million for our
midstream and intrastate transportation and storage segments, $824.6 million for our interstate transportation
segment, and $34.5 million for our retail propane and all other segments. We also incurred $99.3 million in
maintenance expenditures, of which $50.7 million related to our midstream and intrastate transportation and
storage segments, $20.5 million related to our interstate transportation segment, and $28.0 million to our retail
propane and all other segments. In addition, in 2010 we paid cash for acquisitions of $177.9 million.
Year Ended December 31, 2009
Cash used in investing activities during 2009 of $1.35 billion was comprised primarily of $530.3 million invested
for growth capital expenditures (excluding the allowance for equity funds used during construction), including
changes in accruals of $115.7 million. Total growth capital expenditures consist of $412.0 million for our
midstream and intrastate transportation and storage segments, $78.9 million for our interstate operations, and
$39.5 million for our propane operations. We also incurred $102.7 million in maintenance expenditures needed
to sustain operations of which $65.0 million related to midstream and intrastate operations, $13.2 million related
to interstate operations, and $24.4 million related to propane operations. In addition, we made advances to MEP
of $664.5 million and received a reimbursement from FEP of all of our contributions, including $9.0 million that
we contributed in 2008. As a result of our acquisition of a natural gas compression equipment business in
exchange for ETP Common Units, cash acquired in connection with acquisitions during 2009 exceeded the cash
we paid by $30.4 million.
Year Ended December 31, 2008
Cash used in investing activities during 2008 of $2.02 billion was comprised primarily of cash paid for
acquisitions of $84.8 million and $1.92 billion invested for growth capital expenditures (net of contribution in aid
of construction costs), including changes in accruals of $57.9 million. Total growth capital expenditures
consisted of $1.19 billion for our intrastate operations, $695.1 million for our interstate operations, and $40.2
million for our propane operations. We also incurred $141.0 million in maintenance expenditures needed to
sustain operations of which $75.4 million related to our intrastate operations, $25.1 million related to our
interstate operations, and $40.5 million related to our propane operations. In addition, we received a
reimbursement of $63.5 million, net during the first quarter of 2008 from MEP for previous advances to MEP.
There were also advances of $9.0 million made to FEP during 2008.
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