Energy Transfer Partners, Regency Energy announce successful merger

DALLAS (BUSINESS WIRE) — Energy Transfer Partners LP and Regency Energy Partners LP have completed the previously announced merger of an indirect subsidiary of Energy Transfer, with and into Regency, with Regency surviving the merger as a wholly owned subsidiary of Energy Transfer.

Effective with the opening of the market on Thursday April 30, Regency ceased to be a publicly traded partnership, and its common units discontinued trading on the NYSE.

As part of the merger consideration, each Regency common unit and Class F unit will be converted into the right to receive 0.4124 ETP common units. Based on the RGP units outstanding, ETP issued approximately 172.154 million ETP common units to RGP unitholders, including approximately 15.526 million units issued to ETP subsidiaries. The approximately 1.913 million outstanding Regency Series A preferred units were converted into corresponding new ETP Series A preferred units.

In connection with the transaction, Energy Transfer Equity LP, which owns the general partner and 100 percent of the incentive distribution rights (IDRs) of ETP, will reduce the incentive distributions it receives from ETP by a total of $320 million over a five-year period. The IDR subsidy will be $80 million in the first year post-closing and $60 million per year for the following four years.

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Energy Transfer Partners is a master limited partnership owning and operating a diversified portfolio of energy assets. Its subsidiaries include Panhandle Eastern Pipe Line Company LP (the successor of Southern Union Co.) and Lone Star NGL LLC, which owns and operates natural gas liquids storage, fractionation and transportation assets. In total, Energy Transfer owns and operates more than 62,000 miles of natural gas and natural gas liquids pipelines.

Energy Transfer Equity LP is a master limited partnership that owns the general partner and 100 percent of the incentive distribution rights of Energy Transfer Partners.