Business Context and Reporting Period
This Form 8-K is filed by Energy Transfer Equity, L.P. on July 29, 2011, regarding a corporate governance matter. The report addresses a temporary noncompliance with New York Stock Exchange (NYSE) listing standards concerning the composition of the Partnership's audit committee.
Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on board composition and regulatory compliance rather than financial performance.
Material Changes
- Board Resignations: Effective June 30, 2011, independent directors Bill W. Byrne and Paul E. Glaske resigned from the Board of Directors of the general partner to serve on the conflicts committee of Energy Transfer Partners, L.P. (ETP) in connection with a proposed merger with Southern Union Company.
- Audit Committee Composition: The resignations reduced the number of independent directors on the audit committee to one (Mr. Rick Turner was appointed effective June 30, 2011), falling below the NYSE requirement of at least three independent directors.
- Regulatory Notice: The Partnership notified the NYSE of this noncompliance on July 29, 2011.
Outlook and Management Commentary
The Board of Directors intends to appoint another independent director to the audit committee, or otherwise ensure three independent directors serve on the committee, prior to December 31, 2011. The filing notes that the resignations were part of the process for the proposed merger and the contribution of a 50% interest in Citrus Corp. to ETP.
Key Facts for Investor Verification
- Verify the appointment of a new independent director to the audit committee before the December 31, 2011 deadline to ensure continued NYSE compliance.
- Monitor the status of the proposed merger between the Partnership and Southern Union Company.
- Confirm the final composition of the audit committee following the transition of Messrs. Byrne and Glaske to ETP.