Energy Transfer Equity LP is a limited partnership company in the energy sector. Headquartered in Dallas, Texas, Energy Transfer Equity LP provides natural gas pipeline transportation and transmission services, according to MarketWatch. Kelcy Warren is Chairman; John McReynolds is President and Director; Marshall McCrea is Director, Chief Operating & Commercial Officer; Thomas Long is Group Chief Financial Officer; Richard Brannon is General Partner. The company trades on the New York Stock Exchange under ETE.
According to a recent analysis, Energy Transfer Equity recently “made a mess of things” when it announced it replaced its Chief Financial Officer after a merger with Williams Companies (NYSE: WMB). Investors reportedly viewed this announcement “as a sign that the company’s financials might be in trouble,” and later learned that Energy Transfer Equity was “apparently actively working to nix the merger with Williams Companies by reportedly calling major shareholders and asking them to vote against the deal” due to alleged concerns over the $6 billion in debt ETE would have to take on in order to make the deal. The analysis observes similar concerns that “the added $6 billion in debt could come back to bite the company in the future by limiting its financial flexibility.”
Reports state that Energy Transfer Equity is “exploring a number of options to boost its cash position,” including a recent private offering of convertible shares to certain investors, “which resulted in those holders agreeing to forgo receiving some of their distributions for up to nine quarters.” As the above analysis observed: “That retained cash would then be used to pay down some of the debt incurred to acquire Williams Companies. That savings aside, what’s really curious is that only some investors were allowed to participate in the offering because Williams Companies wouldn’t allow its accounting firm to sign off on it. Clearly, the company didn’t like the proposal.”
Energy Transfer Equity is reportedly also “exploring the sale of its general partner interest and the incentive distribution rights in gas station and convenience store operator Sunoco,” which is valued at around $2 billion.
Said one analyst of the Williams Companies merger, “It’s getting to the point where the deal either needs to be restructured, or it needs to fall apart, because in its current form, it could be Energy Transfer Equity’s undoing.”
If you or someone you know has a complaint regarding an investment in Energy Transfer Equity LP (ETE), call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup losses. Fitapelli Kurta accepts every case on contingency: we only get paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.