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Energy Transfer Partners and Energy Transfer Equity Announce Final Terms of Bakken Pipeline Project and SXL GP/IDR Exchange



HOUSTON, December 24, 2014 -- Energy Transfer Partners, L.P. and Energy Transfer Equity, L.P. announced that the conflicts committees and the Boards of Directors of ETP and ETE have approved the final terms of the previously announced transaction involving the Bakken pipeline project (“Bakken Pipeline”) and Sunoco Logistics Partners L.P. (NYSE: SXL) general partner interest (GP) and incentive distribution rights (IDR) exchange.

In the transaction, ETP will receive for redemption the 30.8 million ETP common units currently owned by ETE, ETE’s 45% interest in the Bakken Pipeline, and $879 million in cash, plus reimbursement for development expenses related to the Bakken Pipeline, in exchange for an additional 40% interest in the SXL GP/IDRs represented by additional Class H units to be issued by ETP. In addition, ETP and ETE have agreed to reduce existing IDR subsidies from ETE to ETP by $55 million in 2015 and $30 million in 2016 (see updated IDR subsidy schedule in Exhibit A below).

The transaction is expected to close in February 2015 after the record date for fourth quarter distributions on both the SXL GP interest and IDRs and ETP common units, but will be effective as of January 1, 2015.

Baker Botts was counsel to Goldman Sachs.

Baker Botts Lawyers Involved: Hillary Holmes (Partner, Houston), Joshua Davidson (Partner, Houston), Monica White (Associate, Houston) and Mike Bresson (Partner, Houston).

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