Business Context and Reporting Period
This Form 8-K is a current report filed by Energy Transfer Equity, L.P. on November 17, 2015. The filing addresses a corporate governance matter concerning the composition of the Audit Committee of the Board of Directors of LE GP, LLC, the general partner of the Partnership.
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 a regulatory compliance issue regarding board independence and does not contain financial performance data.
Material Changes
On November 9, 2015, Matthew S. Ramsey, a director and member of the Audit Committee, was appointed as President and Chief Operating Officer of Energy Transfer Partners, L.L.C. (ETP), an affiliate of the Partnership. This appointment rendered Mr. Ramsey non-independent under Section 10A-3 of the Securities Exchange Act of 1934 and Section 303A.02 of the NYSE Listed Company Manual. Consequently, the Partnership became temporarily deficient in meeting the NYSE requirement that audit committees comprise at least three independent directors.
Outlook, Risks, and Management Commentary
The Partnership notified the NYSE of this deficiency via an interim affirmation on November 15, 2015, and received official notice of the deficiency on November 17, 2015. Management expects to remedy this deficiency by identifying a replacement for Mr. Ramsey on the Audit Committee on or before November 30, 2015. There are no other risks, contingencies, or unusual items disclosed in this filing.
Key Facts for Investor Verification
- Matthew S. Ramsey is no longer considered an independent director due to his new executive role at an affiliate.
- The Audit Committee is currently non-compliant with NYSE listing standards regarding independent director composition.
- The company has set a deadline of November 30, 2015, to appoint a replacement and restore compliance.
- This filing contains no financial results or operational metrics.