LP Gas, November 2011

NEWS BRIEFS INDUSTRY NEWS NUMBERS AmeriGas acquires Heritage Propane Bissell announces retirement for 2012 AmeriGas Partners L P reached an agreement to acquire Heritage Propane the propane operations of Energy Transfer Partners L P for about 29 billion the nations largest propane retailer announced Energy Transfer conducts its propane operations in 41 states through subsidiaries including Heritage Operating L P and AmeriGas will add more than 1 million retail customers and 500 million gallons Titan Energy Partners L P The acquisition of Heritage Propane will add more than 1 million retail propane customers and more than 500 million gallons to Ameri Gas nationwide propane distribution operations which already included 13 million retail customers and more than 893 million gallons of annual propane sales This transaction provides AmeriGas with an outstanding opportunity to grow its core business said Eugene V N Bissell president and CEO of AmeriGas in a company statement We look forward to working with Heritage Propane as we merge two high quality propane operations into one cohesive organization The combination of these two customer focused teams will provide us with the unique opportunity to utilize a broader platform to enhance productivity develop new growth opportunities and deploy new technologies Kinder Morgan merger creates energy giant Kinder Morgan Inc announced a 38 billion acquisition of El Paso Corp in a deal that would create the largest midstream business and fourth largest energy company in North America with an enterprise value of about 94 billion and 80000 miles of pipelines The transaction is expected to close in the second quarter of 2012 According to Kinder Morgan the combined enterprise including the associated master limited partnerships Kinder Morgan Energy Partners L P and El Paso Pipeline Partners L P will represent the largest natural gas pipeline network in the United States the largest independent transporter of petroleum products the largest transporter of CO2 and the largest independent terminal owner operator NLRB postpones union poster requirement The National Labor Relations Board NLRB said it will wait more than two months to implement its new rule requiring most private businesses to display a poster that details workers rights to form a union The board chose to postpone the effective date until Jan 31 2012 in order to allow for enhanced education and outreach to employers particularly those who Continued on page 10 PROPANE MASTER LIMITED PARTNERSHIP COMPARISON Total Units Quarter Price Tax Debt Debt Outstanding Company Symbol Ended 10 19 11 Distribution Yield Deferral Capital Mkt Cap millions AmeriGas APU June 4420 296 67 75 59 33 571 Energy Transfer ETP June 4390 358 82 80 56 83 2086 Ferrellgas FGP July 2010 200 100 90 85 72 715 Inergy NRGY June 2573 282 110 80 56 55 1241 NGL Energy Partners NGL June 2156 135 63 90 9 3 148 Suburban SPH June 4745 341 72 80 45 21 355 Average 82 52 45 LAST TWELVE MONTHS Gross Gross Gross Profi t EBITDA Gallons Sold Percent Gross Profi t EBITDA Company Revenue Profi t Margin Per employee millions millions Change Per gallon Per gallon AmeriGas 24589 9280 377 160000 325 875 22 106 037 Energy Transfer 14109 6342 450 157570 253 551 18 115 046 Ferrellgas 23274 6935 298 193283 232 650 55 107 036 Inergy 8466 3915 462 127028 235 328 25 119 072 NGL Energy Partners 761 415 545 117564 13 54 NM 077 023 Suburban 9604 5150 536 198229 176 302 54 170 058 Average 445 158946 35 116 045 1 Energy Transfer LTM results are only those of ETPs propane segment Heritage Propane Wells Fargo Securities LLC 2 Suburbans gallons sold include propane and heating oil gallons Ron Londe analyst 3 NGLs LTM is pro forma 2010 results 8 LPGas November 2011 www LPGasmagazine com