Energy Transfer Equity to Acquire Southern Union - The Deal will Allow ETE Access to a Larger Midstream Platform with Expanded Geographical Reach - Deal Analysis from GlobalData

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					         Energy Transfer Equity to Acquire Southern Union - The Deal
          will Allow ETE Access to a Larger Midstream Platform with
              Expanded Geographical Reach - Deal Analysis from
                                 GlobalData
        Reference Code: GDGE0312M&A                                                                                                         Publication Date: July 2011


        1         Table of Contents
        1 Table of Contents.................................................................1
         1.1 List of Tables .................................................................1
         1.2 List of Figures ................................................................1
        2 Energy Transfer Equity to Acquire Southern Union .............2
         2.1 Deal Overview ...............................................................2
         2.2 Deal in Brief ...................................................................2
         2.3 ETE is Looking Forward to Realizing Immediate
              Operational and Commercial Synergies through the
              Current Transaction.......................................................2
         2.4 SUG, Through its Transportation and Storage,
              Gathering and Processing, and Distribution Segments,
              has a Significant Presence in the US ............................3
         2.5 ETE has Entered into Some Significant M&A Deals to
              Grow 3
         2.6 Deal Financials and Valuations .....................................3
        3 Appendix ..............................................................................6
         3.1 Methodology ..................................................................6
         3.2 Contact Us.....................................................................7
         3.3 Disclaimer......................................................................7

        1.1       List of Tables
        Table 1: Companies Involved ....................................................3
        Table 2: Financials of the Deal ..................................................4
        Table 3: Advisor Information ......................................................4
        Table 4: Target Information .......................................................4
        Table 5: Target’s Financial Information.....................................4
        Table 6: Share Price Information ...............................................5
        Table 7: Company Valuation Multiples ......................................5
        Table 8: Target’s Pipeline & Storage Capacity information.......5
        Table 9: Company Valuation Multiples ......................................5
        Table 10: Acquirer Information ..................................................5


        1.2       List of Figures
        Figure 1:      Southern Union Assets and ETE-Controlled Assets,
                       Operations Map, July 2011 .......................................2




Energy Transfer Equity to Acquire Southern Union - The Deal will Allow                                                                    GDGE0312M&A /Published JUL 2011
ETE Access to a Larger Midstream Platform with Expanded Geographical                                                                                               Page 1
Reach                                                                                                © GlobalData. This report is a licensed product and is not to be photocopied
                                                                            acquisition, SUG will become a wholly-owned subsidiary of
                                                                            ETE. The assets owned by SUG will complement the assets
        2       Energy Transfer Equity to Acquire                           held by ETE’s subsidiaries. ETE currently owns the general
                Southern Union                                              partner and 100% of the incentive distribution rights (IDRs) of
                                                                            ETP and RGNC; and approximately 50.2m ETP limited partner
        2.1    Deal Overview                                                units and 26.3m RGNC limited partner units.
        Deal Type:                   Acquisition                            After the completion of the transaction, the combined operation
        Deal Status:                 Announced                              of ETE (together with ETP and RGNC) and SUG will have more
                                                                            than 44,000 miles of natural gas pipelines and approximately
        Announced Date:             June 16, 2011                           30.7 bcf/d of natural gas transportation capacity. This will allow
                                                                            ETE to become a significant natural gas infrastructure player in
        2.2    Deal in Brief                                                the US. Kelcy Warren, Chairman of the Board of Directors of
        Energy Transfer Equity, L.P. (ETE), a midstream energy              ETE, stated, “The acquisition of Southern Union will give ETE a
        company, entered into an amended and restated agreement to          larger, more competitive interstate and midstream platform and
        acquire Southern Union Company (S
				
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Description: Energy Transfer Equity to Acquire Southern Union - The Deal will Allow ETE Access to a Larger Midstream Platform with Expanded Geographical Reach - Deal Analysis from GlobalData Summary Energy Transfer Equity, L.P. (ETE), a midstream energy company, entered into an amended and restated agreement to acquire Southern Union Company (SUG), a company engaged in the transportation, storage, gathering, processing and distribution of natural gas, for a purchase consideration of $8.9 billion. The company will fund the acquisition cost, through the payment of $5.1 billion in cash and the issuance of ETE common units. The transaction is expected to close in Q1 2012, subject to SUG stockholder approval and approvals from regulatory authorities. The transaction implies a deal value of $1.03 per cubic feet of daily pipeline throughput capacity, $81.65 per thousand cubic feet (Mcf) of natural gas installed storage capacity and $17,800 per daily Mcf of natural gas processing capacity. Scope - Rationale behind Energy Tranfer Equity acquiring Southern Union Company, - Strategic Benefit for the companies involved, - Geography covered -The US Reasons to buy - Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures taking place in North American industry, - Identify the most lucrative segments to leverage on the growth oppurtunities available in the US's oil & gas market, - Get a detailed analysis of a deal to enable you to take better decisions.
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