Shares of Energy Transfer Equity LP (the Partnership) (NYSE: ETE) fell almost 40% on Monday, following its announcement that Thomas E. Long will replace Jamie Welch as group CFO of LE GP LLC (the Company), the general partner of the Partnership. ETE made the announcement in a document filed with the US Securities and Exchange Commission on Feb. 5.
Long currently serves as CFO of Energy Transfer Partners LLC (ETP LLC), which owns the general partner of Energy Transfer Partners LP (ETP), a role he has held since April 2015. Prior to that, Long served as executive vice president and CFO of Regency Energy Partners LP from November 2010 to April 2015. The Partnership owns a 100% interest in ETP LLC.
In his new role, Long will be responsible for all financial aspects of the entire family of partnerships under ETE, including ETP, Sunoco Logistics Partners LP, and Sunoco LP.
According to the Partnership, there are no arrangements or understandings between Long and any other person(s) pursuant to which Long was selected as group CFO. There are no existing relationships between Long and the Company, the Partnership, ETP, or any of their respective subsidiaries that would require disclosure pursuant to Item 404(a) of Regulation S-K or any familial relationship that would require disclosure under Item 401(d) of Regulation S-K.
As a follow-up to the Feb. 5 announcement regarding the replacement of Welch as the CFO of Energy Transfer Equity with Long, currently CFO of Energy Transfer Partners, the Partnership says that it has initiated discussions with Welch toward a potential consulting arrangement related primarily to the continued development of the Partnership’s LNG export project, as well as other financing matters, although, at this time, the Partnership says that no agreements have been reached.
In addition, the Partnership has affirmed that the replacement of Welch as CFO of the Partnership was not based on any disagreement with respect to any accounting or financial matter involving the Partnership or any of its affiliates.
In December 2015, Energy Transfer Equity and The Williams Companies Inc. (NYSE: WMB) entered into a timing agreement with the US Federal Trade Commission in connection with Energy Transfer Corp. LP’s proposed acquisition of WMB.