Regency Energy Partners LP Acquisition of Southern Union Gathering Company, LLC February 28, 2013
Transaction Highlights Regency will acquire Southern Union Gathering Company, LLC, the owner of Southern Union Gathering Services, Ltd. (SUGS), from Southern Union Company, a jointly owned affiliate of Energy Transfer Equity, L.P. and…
Strategic Rationale Combination and integration of SUGS assets will create a broad gathering and processing system with excellent downstream connectivity Enhanced exposure to the Permian Basin, one of the most prolific, high…
Transaction Structure Regency will acquire 100% ownership of SUGS from Southern Union Company in exchange for 1.5 billion: 750 million of RGP common units issued to Southern Union Company 150 million of newly created RGP Class F units…
Combined West Texas Footprint Integration of SUGS assets with existing operations positions Regency with a broad gathering and processing footprint in the Permian Basin Plant Capacities Proforma West Texas Asset Map Processing…
Business Mix Overview Adjusted Total Segment Margin by Segment 2012 2013 PreClosing Estimate 2013 PostClosing Estimate 25% 24% 21% 36% 37% 46% 13% 11% 16% 28% 23% 19% Gathering and Processing Natural Gas…
Business Mix Overview Approximately 90% of existing SUGS commercial agreements contain direct commodity exposure in the form of natural gas, condensate (WTI) and NGLs Regency will execute on a number of swap contracts to mitigate a…
Growth Capex with SUGS 2013 Growth Capital Projections ( in millions) 95 120 365 Gathering and Processing NGL Services Contract Services 2013 Gathering and Processing capex includes 180 million associated with…
Q&A
Sample Table and Footer Box Appendix NGL Logistics
Maintain Stable Cash Flows: DCF Sensitivities DCF Sensitivity to Commodity Price Changes 2013 Target Estimate1,2 Change in WTI Price (/Bbl) Change in Natural Gas Price Decrease 10.00 Flat Increase 10.00 (/MMbtu)…
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