Energy Transfer Partners, L.P. Reports Record Year-to-Date Results.

DALLAS -- Energy Transfer Partners, L.P. (NYSE:ETP) reported net income of $515.9 million for the fiscal year ended August 31, 2006, an increase of $166.5 million or about 48% as compared to $349.4 million for the fiscal year ended August 31, 2005. Included in net income for the prior fiscal year ended August 31, 2005, is a net gain of $142.5 million from the sale of the Elk City system. EBITDA, as adjusted, was $764.6 million for the fiscal year ended August 31, 2006 an increase of $351.4 million or about 85% as compared to $413.2 million for the fiscal year ended August 31, 2005.

While net income for the fourth quarter ended August 31, 2006 of $33.3 million decreased by $8.3 million as compared to net income of $41.6 million for the fourth quarter ended August 31, 2005, EBITDA, as adjusted, for the fourth quarter of fiscal 2006 increased by $14.2 million, or approximately 15%, to $107.1 million versus the $92.9 million reported for the fourth quarter of fiscal 2005.

The Partnership also announced today that due to its recent acquisitions, improved financial performance over the prior fiscal year, and the outlook for the upcoming fiscal year, it is providing EBITDA guidance of $980.0 million for fiscal year 2007. The Partnership believes its operations are again positioned to provide increasing operating results based on the current levels of contracted and expected capacity to be taken by its customers, several expansion plans that it expects to complete in fiscal year 2007, and the recently acquired Titan propane operations. The Partnership also expects to complete the acquisition of Transwestern Pipeline in the second quarter of fiscal year 2007, and upon closing, expects the transaction to be immediately accretive to its Limited Partner Units.

The Partnership has scheduled a conference call for 2:00 p.m. Central Standard Time, Wednesday, November 15, 2006 to discuss the fiscal year 2006 results. The dial-in number is 800-762-6568; participant code: Energy Transfer Partners.

EBITDA, as adjusted, is a non-GAAP financial measure used by industry analysts, investors, lenders, and rating agencies to assess the financial performance and the operating results of the Partnership's fundamental business activities. EBITDA, as adjusted, should not be considered in isolation or as a substitute for net income, income from continuing operations, or other measures of cash flow. A table reconciling EBITDA, as adjusted, with appropriate GAAP financial measures is included in the summarized financial information included in this release.

Energy Transfer Partners, L.P. is a publicly traded partnership owning and operating a diversified portfolio of energy assets. The Partnership's natural gas transportation and storage operations include natural gas gathering and transportation pipelines, natural gas treating and processing assets located in Texas and Louisiana, and three natural gas storage facilities located in Texas. This includes approximately 12,000 miles of pipeline in service, with an additional 600 miles under construction. In addition, the Partnership currently owns 50% of the interests of CCE Holdings, LLC, (CCEH), an entity that operates interstate pipelines. This ownership interest was acquired on November 1, 2006 and is the first step in the series of transactions to acquire Transwestern Pipeline. The Partnership is one of the three largest retail marketers of propane in the United States, serving more than one million customers from approximately 442 customer service locations in 41 states, extending from coast to coast.

Energy Transfer Equity, L.P. (NYSE:ETE) owns the general partner interest, 100% of the incentive distribution rights in the general partner, and approximately 36.4 million Common Units and 26.1 million Class G Units of Energy Transfer Partners, L.P. The Class G Units were issued to ETE on November 1, 2006.

The information contained in this press release is available on the Partnership's website at www.energytransfer.com.

ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except unit data)

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ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per unit and unit data)

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a) EBITDA, as adjusted, is defined as the Partnership's earnings before interest, taxes, depreciation, amortization and other non-cash items, such as compensation charges for unit issuances to employees, gain or loss on disposal of assets, and other expenses. We present EBITDA, as adjusted, on a Partnership basis, which includes both the general and limited partner interests. Non-cash compensation expense represents charges for the value of the grants awarded under the Partnership's compensation plans over the vesting terms of those plans and are charges which do not, or will not, require cash settlement. Non-cash income or loss such as the gain or loss arising from our disposal of assets and discontinued operations is not included when determining EBITDA, as adjusted. EBITDA, as adjusted, (i) is not a measure of performance calculated in accordance with generally accepted accounting principles and (ii) should not be considered in isolation or as a substitute for net income, income from operations or cash flow as reflected in our consolidated financial statements.

EBITDA, as adjusted, is presented because such information is relevant and is used by management, industry analysts, investors, lenders and rating agencies to assess the financial performance and operating results of our fundamental business activities. Management believes that the presentation of EBITDA, as adjusted, is useful to lenders and investors because of its use in the natural gas and propane industries and for master limited partnerships as an indicator of the strength and performance of the Partnership's ongoing business operations, including the ability to fund capital expenditures, service debt and pay distributions. Additionally, management believes that EBITDA, as adjusted, provides additional and useful information to our investors for trending, analyzing and benchmarking the operating results of our partnership from period to period as compared to other companies that may have different financing and capital structures. The presentation of EBITDA, as adjusted, allows investors to view our performance in a manner similar to the methods used by management and provides additional insight to our operating results. In addition, our debt agreements contain financial covenants based on EBITDA, as adjusted.

EBITDA, as adjusted, is used by management to determine our operating performance, and, along with other data, as internal measures for setting annual operating budgets, assessing financial performance of our numerous business locations, as a measure for evaluating targeted businesses for acquisition and as a measurement component of incentive compensation. We have a large number of business locations located in different regions of the United States. EBITDA, as adjusted, can be a meaningful measure of financial performance because it excludes factors which are outside the control of the employees responsible for operating and managing the business locations, and provides information management can use to evaluate the performance of the business locations, or the region where they are located, and the employees responsible for operating them. Our EBITDA, as adjusted, includes non-cash compensation expense which is a non-cash expense item resulting from our unit-based compensation plans that does not require cash settlement and is not considered during management's assessment of the operating results of our business. Adding these non-cash compensation expenses in EBITDA, as adjusted, allows management to compare our operating results to those of other companies in the same industry who may have compensation plans with levels and values of annual grants that are different than ours. We do not include gain or loss on the sale of assets when determining EBITDA, as adjusted, since including non-cash income or loss resulting from the sale of assets increases/decreases the performance measure in a manner that is not related to the true operating results of our business. We also did not include in EBITDA, as adjusted, the $7.7 million of income resulting from settlement of the Scana Litigation as that is not related to the true operating results of our business.

There are material limitations to using a measure such as EBITDA, as adjusted, including the difficulty associated with using it as the sole measure to compare the results of one company to another, and the inability to analyze certain significant items that directly affect a company's net income or loss. In addition, our calculation of EBITDA, as adjusted, may not be consistent with similarly titled measures of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP. Management compensates for these limitations by considering EBITDA, as adjusted, in conjunction with its analysis of other GAAP financial measures, such as gross margin, operating income, net income, and cash flow from operating activities.