Exhibit 99.1

ENERGY TRANSFER PARTNERS
REPORTS QUARTERLY AND ANNUAL RESULTS

Dallas — February 16, 2011 — Energy Transfer Partners, L.P. (NYSE:ETP) today reported Adjusted EBITDA, Distributable Cash Flow, and net income for the quarter and year ended December 31, 2010. Adjusted EBITDA for the three months ended December 31, 2010 totaled $411.1 million, an increase of $0.4 million over the three months ended December 31, 2009. Distributable Cash Flow for the three months ended December 31, 2010 totaled $284.4 million, an increase of $26.8 million over the three months ended December 31, 2009. Net income for the three months ended December 31, 2010 totaled $226.9 million, a decrease of $34.3 million from the three months ended December 31, 2009.

For the year ended December 31, 2010, Adjusted EBITDA totaled $1.54 billion, an increase of $63.5 million over the year ended December 31, 2009. Distributable Cash Flow for the year ended December 31, 2010 was $1.03 billion, an increase of $70.7 million over the year ended December 31, 2009. Net income for the year ended December 31, 2010 totaled $617.2 million, a decrease of $174.3 million from the year ended December 31, 2009. Net income for the year ended December 31, 2010 included a $52.6 million non-cash charge recorded in connection with ETP’s May 2010 transfer of substantially all of its interest in the Midcontinent Express Pipeline to Energy Transfer Equity, L.P. (“ETE”) in exchange for the redemption of 12.3 million ETP common units held by ETE.

Related to ETP’s liquidity position, the Partnership had available capacity under its revolving credit facility of approximately $1.57 billion in addition to approximately $49.5 million of cash on hand as of December 31, 2010.

An analysis of the Partnership’s segment results and other supplementary data is provided after the financial tables shown below. The Partnership has scheduled a conference call for 8:00 a.m. Central Time, Thursday, February 17, 2011 to discuss the 2010 results. The conference call will be broadcast live via an internet web cast which can be accessed through www.energytransfer.com and will also be available for replay on the Partnership’s website for a limited time.

Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures 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 and should not

be considered in isolation or as a substitute for net income, operating income, cash flows from operating activities, or other GAAP measures. A table reconciling Adjusted EBITDA and Distributable Cash Flow with appropriate GAAP financial measures is included in the summarized financial information included in this release. Beginning with the quarter ended September 30, 2010 and applied retroactively to all periods presented, the Partnership has revised the items included in commodity risk management activities in its reconciliation of net income to Adjusted EBITDA and net income to Distributable Cash Flow. (See notes under “Supplemental Information” for further information.)

Energy Transfer Partners, L.P. (NYSE:ETP) is a publicly traded partnership owning and operating a diversified portfolio of energy assets. ETP has pipeline operations in Arkansas, Arizona, Colorado, Louisiana, Mississippi, New Mexico, Utah and West Virginia and owns the largest intrastate pipeline system in Texas. ETP currently has natural gas operations that include more than 17,500 miles of gathering and transportation pipelines, treating and processing assets, and three storage facilities in Texas. ETP is also one of the three largest retail marketers of propane in the United States, serving more than one million customers across the country.

Energy Transfer Equity, L.P. (NYSE:ETE) is a publicly traded partnership, which owns the general partner of Energy Transfer Partners and approximately 50.2 million ETP limited partner units; and owns the general partner of Regency Energy Partners and approximately 26.3 million Regency limited partner units.

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

Contacts
Investor Relations:
Energy Transfer
Brent Ratliff
214-981-0700 (office)

Media Relations:
Vicki Granado
Granado Communications Group
214-504-2260 (office)
214-498-9272 (cell)

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

		December 31,
		2010				2009
ASSETS
CURRENT ASSETS		$	1,121,423			$	1,271,963
PROPERTY, PLANT AND EQUIPMENT, net			9,801,369				8,670,247
ADVANCES TO AND INVESTMENTS IN AFFILIATES			8,723				663,298
LONG-TERM PRICE RISK MANAGEMENT ASSETS			13,948				—
GOODWILL			781,233				745,505
INTANGIBLES AND OTHER ASSETS, net			423,296				383,959
Total assets		$	12,149,992			$	11,734,972
LIABILITIES AND PARTNERS’ CAPITAL
CURRENT LIABILITIES		$	842,450			$	823,539
LONG-TERM DEBT, less current maturities			6,404,916				6,176,918
LONG-TERM PRICE RISK MANAGEMENT LIABILITIES			18,338				—
OTHER NON-CURRENT LIABILITIES			140,851				134,807
COMMITMENTS AND CONTINGENCIES
PARTNERS’ CAPITAL			4,743,437				4,599,708
Total liabilities and partners’ capital		$	12,149,992			$	11,734,972

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

		Three Months Ended								Years Ended
		December 31,								December 31,
		2010				2009				2010				2009
REVENUES:
Natural gas operations		$	1,019,119			$	1,111,643			$	4,454,640			$	4,115,806
Retail propane			400,601				360,623				1,314,973				1,190,524
Other			34,776				33,516				115,214				110,965
Total revenues			1,454,496				1,505,782				5,884,827				5,417,295
COSTS AND EXPENSES:
Cost of products sold — natural gas operations			584,490				653,661				2,817,357				2,519,575
Cost of products sold — retail propane			233,130				196,330				752,926				574,854
Cost of products sold — other			9,188				8,785				29,658				27,627
Operating expenses			192,250				163,556				707,271				680,893
Depreciation and amortization			90,246				82,342				343,011				312,803
Selling, general and administrative			38,690				30,921				176,433				173,936
Total costs and expenses			1,147,994				1,135,595				4,826,656				4,289,688
OPERATING INCOME			306,502				370,187				1,058,171				1,127,607
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized			(103,336	)			(110,046	)			(412,553	)			(394,274	)
Equity in earnings of affiliates			879				8,846				11,727				20,597
Losses on disposal of assets			(4,845	)			(231	)			(5,043	)			(1,564	)
Gains on non-hedged interest rate derivatives			16,579				6,912				4,616				39,239
Allowance for equity funds used during construction			10,903				(8,061	)			28,942				10,557
Impairment of investment in affiliate			—				—				(52,620	)			—
Other, net			3,249				(2,243	)			(482	)			2,157
INCOME BEFORE INCOME TAX EXPENSE			229,931				265,364				632,758				804,319
Income tax expense			3,050				4,183				15,536				12,777
NET INCOME			226,881				261,181				617,222				791,542
GENERAL PARTNER’S INTEREST IN NET INCOME			100,085				98,966				387,729				365,362
LIMITED PARTNERS’ INTEREST IN NET INCOME		$	126,796			$	162,215			$	229,493			$	426,180
BASIC NET INCOME PER LIMITED PARTNER UNIT		$	0.65			$	0.92			$	1.20			$	2.53
BASIC AVERAGE NUMBER OF UNITS OUTSTANDING			191,979,935				176,695,318				188,077,143				167,337,192
DILUTED NET INCOME PER LIMITED PARTNER UNIT		$	0.65			$	0.91			$	1.19			$	2.53
DILUTED AVERAGE NUMBER OF UNITS OUTSTANDING			192,689,824				177,217,552				188,717,396				167,768,981

SUPPLEMENTAL INFORMATION
(Dollars in thousands)
(unaudited)

		Three Months Ended								Years Ended
		December 31,								December 31,
		2010				2009				2010				2009
						(Revised see								(Revised see
						note (b) below)								note (b) below)
Reconciliation of net income to Adjusted EBITDA (a):
Net income		$	226,881			$	261,181			$	617,222			$	791,542
Interest expense, net of interest capitalized			103,336				110,046				412,553				394,274
Income tax expense			3,050				4,183				15,536				12,777
Depreciation and amortization			90,246				82,342				343,011				312,803
Non-cash unit-based compensation expense			5,758				3,090				27,180				24,032
Losses on disposals of assets			4,845				231				5,043				1,564
Gains on non-hedged interest rate derivatives			(16,579	)			(6,912	)			(4,616	)			(39,239	)
Allowance for equity funds used during construction			(10,903	)			8,061				(28,942	)			(10,557	)
Unrealized (gains) losses on commodity risk management activities (b)			7,618				(66,500	)			78,300				(29,980	)
Impairment of investment in affiliate			—				—				52,620				—
Proportionate share of joint ventures’ interest, depreciation and allowance for equity funds used during construction			65				12,680				22,499				22,331
Other, net			(3,249	)			2,243				482				(2,157	)
Adjusted EBITDA		$	411,068			$	410,645			$	1,540,888			$	1,477,390
Reconciliation of net income to Distributable Cash Flow (a):
Net income		$	226,881			$	261,181			$	617,222			$	791,542
Amortization of finance costs charged to interest			2,332				2,259				9,548				8,645
Deferred income taxes			1,948				8,303				6,440				11,966
Depreciation and amortization			90,246				82,342				343,011				312,803
Non-cash unit-based compensation expense			5,758				3,090				27,180				24,032
Losses on disposals of assets			4,845				231				5,043				1,564
Unrealized gains on non-hedged interest rate derivatives			(15,415	)			(19,316	)			(2,452	)			(51,643	)
Allowance for equity funds used during construction			(10,903	)			8,061				(28,942	)			(10,557	)
Unrealized (gains) losses on commodity risk management activities (b)			7,618				(66,500	)			78,300				(29,980	)
Impairment of investment in affiliate			—				—				52,620				—
Distributions in excess of equity in earnings, net			144				8,920				20,909				3,224
Maintenance capital expenditures			(29,009	)			(30,886	)			(99,275	)			(102,652	)
Distributable Cash Flow		$	284,445			$	257,685			$	1,029,604			$	958,944

(a) The Partnership has disclosed in this press release Adjusted EBITDA and Distributable Cash Flow, which are non-GAAP financial measures. Management believes Adjusted EBITDA and Distributable Cash Flow provide useful information to investors as measures of comparison with peer companies, including companies that may have different financing and capital structures. The presentation of Adjusted EBITDA and Distributable Cash Flow also allows investors to view our performance in a manner similar to the methods used by management and provides additional insight into our operating results.

There are material limitations to using measures such as Adjusted EBITDA and Distributable Cash Flow, including the difficulty associated with using either 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 or cash flows. In addition, our calculations of Adjusted EBITDA and Distributable Cash Flow 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, such as gross margin, operating income, net income, and cash flow from operating activities.

Definition of Adjusted EBITDA

The Partnership defines Adjusted EBITDA as total partnership earnings before interest, taxes, depreciation, amortization and other non-cash items, such as non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, non-cash impairment charges, and other non-operating income or expense items. Unrealized gains and losses on commodity risk management activities includes unrealized gains and losses on commodity derivatives and inventory fair value adjustments (excluding lower of cost or market adjustments).

Adjusted EBITDA is used by management to determine our operating performance and, along with other financial and volumetric 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.

Definition of Distributable Cash Flow

The Partnership defines Distributable Cash Flow as net income, adjusted for certain non-cash items, less maintenance capital expenditures. Non-cash items include depreciation and amortization, deferred income taxes, non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, and non-cash impairment charges. Unrealized gains and losses on commodity risk management activities includes unrealized gains and losses on commodity derivatives and inventory fair value adjustments (excluding lower of cost or market adjustments). Distributable Cash Flow also reflects earnings from affiliates on a cash basis.

Distributable Cash Flow is used by management to evaluate our overall performance. Our partnership agreement requires us to distribute all available cash, and Distributable Cash Flow is calculated to evaluate our ability to fund distributions through cash generated by our operations.

(b) The Partnership has presented Adjusted EBITDA and Distributable Cash Flow in previous communications; however, the Partnership changed its definition for these non-GAAP measures in the quarter ended September 30, 2010 to remove lower of cost or market adjustments and the subsequent gross margin impact of such previously recognized inventory adjustments. These amounts had previously been included in unrealized gains and losses on commodity risk management activities, which now reflects unrealized gains and losses on non-hedged derivatives, fair value hedged derivatives and inventory, and the ineffective portion of cash flow hedges. The Partnership believes that with this change, Adjusted EBITDA and Distributable Cash Flow more accurately reflect the Partnership’s operating performance and therefore are more useful measures. This change has been applied retroactively to all periods presented. See “Non-GAAP Measures” available on the Partnership’s website at www.energytransfer.com for the reconciliation of net income to Adjusted EBITDA for prior periods (beginning with the fiscal year ended August 31, 2005) reflecting the changes described above.

REPORTABLE SEGMENTS (unaudited)

		Three Months Ended December 31, 2010
																		All Other
																		(including
														Retail Propane				unallocated
		Intrastate												and Other				selling,
		Transportation				Interstate								Retail Propane				general and
		and Storage				Transportation				Midstream				Related				administrative)				Eliminations				Total
Volumes by segment:
Natural gas transported (MMBtu/d)			12,627,896				1,590,923				—				—
NGLs produced (Bbls/d)			—				—				52,058				—
Equity NGLs produced (Bbls/d)			—				—				18,124				—
Retail propane gallons (in thousands)			—				—				—				166,559
Results by segment:
Revenues from external customers		$	413,180			$	79,412			$	471,416			$	432,532			$	57,956			$	—			$	1,454,496
Intersegment revenues			263,352				—				268,249				—				(17,414	)			(514,187	)			—
Total revenues			676,532				79,412				739,665				432,532				40,542				(514,187	)			1,454,496
Cost of products sold			450,599				—				620,988				239,942				33,521				(518,242	)			826,808
Gross margin			225,933				79,412				118,677				192,590				7,021				4,055				627,688
Operating expenses			49,458				27,593				22,367				89,488				3,428				(84	)			192,250
Depreciation and amortization			29,508				14,726				23,733				20,953				1,326				—				90,246
Selling, general and administrative			20,227				1,137				611				9,593				7,122				—				38,690
Segment operating income (loss)		$	126,740			$	35,956			$	71,966			$	72,556			$	(4,855	)		$	4,139			$	306,502
Supplemental segment data:
Unrealized gains (losses) on commodity risk management activities		$	(6,595	)		$	—			$	(1,298	)		$	275			$	—			$	—			$	(7,618	)
Allowance for equity funds used during construction			—				10,903				—				—				—				—				10,903
Non-cash unit-based compensation expense			1,848				379				978				1,210				1,343				—				5,758
Equity in earnings of affiliates			756				123				—				—				—				—				879
Distributions from equity method investees			991				31				—				—				—				—				1,022
Proportionate share of joint ventures’ interest, depreciation and allowance for equity funds used during construction			—				65				—				—				—				—				65
Maintenance capital expenditures			13,412				4,407				5,518				5,207				465				—				29,009

		Three Months Ended December 31, 2009
																		All Other
																		(including
														Retail Propane				unallocated
		Intrastate												and Other				selling,
		Transportation				Interstate								Retail Propane				general and
		and Storage				Transportation				Midstream				Related				administrative)				Eliminations				Total
Volumes by segment:
Natural gas transported (MMBtu/d)			10,726,393				1,529,990				—				—
NGLs produced (Bbls/d)			—				—				45,147				—
Equity NGLs produced (Bbls/d)			—				—				19,264				—
Retail propane gallons (in thousands)			—				—				—				170,113
Results by segment:
Revenues from external customers		$	580,964			$	66,864			$	452,954			$	390,112			$	14,888			$	—			$	1,505,782
Intersegment revenues			221,282				—				237,740				—				773				(459,795	)			—
Total revenues			802,246				66,864				690,694				390,112				15,661				(459,795	)			1,505,782
Cost of products sold			497,862				—				606,249				202,983				11,477				(459,795	)			858,776
Gross margin			304,384				66,864				84,445				187,129				4,184				—				647,006
Operating expenses			44,345				12,916				18,131				82,167				5,997				—				163,556
Depreciation and amortization			29,525				12,280				19,053				19,999				1,485				—				82,342
Selling, general and administrative			14,160				5,190				3,132				7,813				626				—				30,921
Segment operating income (loss)		$	216,354			$	36,478			$	44,129			$	77,150			$	(3,924	)		$	—			$	370,187
Supplemental segment data:
Unrealized gains on commodity risk management activities		$	61,211			$	—			$	4,388			$	901			$	—			$	—			$	66,500
Allowance for equity funds used during construction			—				(8,061	)			—				—				—				—				(8,061	)
Non-cash unit-based compensation expense			2,823				424				(1,478	)			(283	)			1,604				—				3,090
Equity in earnings of affiliates			768				8,078				—				—				—				—				8,846
Distributions from equity method investees			1,108				16,658				—				—				—				—				17,766
Proportionate share of joint ventures’ interest, depreciation and allowance for equity funds used during construction			—				12,680				—				—				—				—				12,680
Maintenance capital expenditures			13,430				4,290				6,094				6,366				706				—				30,886

		Year Ended December 31, 2010
																		All Other
																		(including
														Retail Propane				unallocated
		Intrastate												and Other				selling,
		Transportation				Interstate								Retail Propane				general and
		and Storage				Transportation				Midstream				Related				administrative)				Eliminations				Total
Volumes by segment:
Natural gas transported (MMBtu/d)			12,251,457				1,616,762				—				—
NGLs produced (Bbls/d)			—				—				51,144				—
Equity NGLs produced (Bbls/d)			—				—				19,301				—
Retail propane gallons (in thousands)			—				—				—				554,865
Results by segment:
Revenues from external customers		$	2,075,217			$	292,419			$	1,955,627			$	1,419,646			$	141,918			$	—			$	5,884,827
Intersegment revenues			1,215,688				—				1,213,687				—				145,405				(2,574,780	)			—
Total revenues			3,290,905				292,419				3,169,314				1,419,646				287,323				(2,574,780	)			5,884,827
Cost of products sold			2,381,397				—				2,759,113				774,742				235,614				(2,550,925	)			3,599,941
Gross margin			909,508				292,419				410,201				644,904				51,709				(23,855	)			2,284,886
Operating expenses			194,955				83,740				78,964				337,180				12,768				(336	)			707,271
Depreciation and amortization			116,992				52,582				85,942				81,947				5,548				—				343,011
Selling, general and administrative			75,049				21,803				18,339				45,936				15,306				—				176,433
Segment operating income (loss)		$	522,512			$	134,294			$	226,956			$	179,841			$	18,087			$	(23,519	)		$	1,058,171
Supplemental segment data:
Unrealized losses on commodity risk management activities		$	(62,370	)		$	—			$	(12,857	)		$	(3,073	)		$	—			$	—			$	(78,300	)
Allowance for equity funds used during construction			—				28,942				—				—				—				—				28,942
Non-cash unit-based compensation expense			11,595				1,632				3,270				4,809				5,874				—				27,180
Equity in earnings of affiliates			2,707				9,020				—				—				—				—				11,727
Distributions from equity method investees			3,907				28,728				—				—				—				—				32,635
Proportionate share of joint ventures’ interest, depreciation and allowance for equity funds used during construction			—				22,499				—				—				—				—				22,499
Maintenance capital expenditures			34,621				20,541				16,077				23,316				4,720				—				99,275

		Year Ended December 31, 2009
																		All Other
																		(including
														Retail Propane				unallocated
		Intrastate												and Other				selling,
		Transportation				Interstate								Retail Propane				general and
		and Storage				Transportation				Midstream				Related				administrative)				Eliminations				Total
Volumes by segment:
Natural gas transported (MMBtu/d)			12,254,168				1,661,785				—				—
NGLs produced (Bbls/d)			—				—				46,640				—
Equity NGLs produced (Bbls/d)			—				—				17,355				—
Retail propane gallons (in thousands)			—				—				—				568,315
Results by segment:
Revenues from external customers		$	1,773,528			$	270,213			$	2,060,451			$	1,292,583			$	20,520			$	—			$	5,417,295
Intersegment revenues			618,016				—				380,709				—				1,145				(999,870	)			—
Total revenues			2,391,544				270,213				2,441,160				1,292,583				21,665				(999,870	)			5,417,295
Cost of products sold			1,393,295				—				2,116,279				596,002				16,350				(999,870	)			3,122,056
Gross margin			998,249				270,213				324,881				696,581				5,315				—				2,295,239
Operating expenses			199,806				59,343				68,989				341,935				10,820				—				680,893
Depreciation and amortization			107,605				48,297				70,845				83,476				2,580				—				312,803
Selling, general and administrative			64,059				24,340				44,315				41,941				(719	)			—				173,936
Segment operating income (loss)		$	626,779			$	138,233			$	140,732			$	229,229			$	(7,366	)		$	—			$	1,127,607
Supplemental segment data:
Unrealized gains (losses) on commodity risk management activities		$	(24,387	)		$	—			$	8,730			$	45,637			$	—			$	—			$	29,980
Allowance for equity funds used during construction			—				10,557				—				—				—				—				10,557
Non-cash unit-based compensation expense			7,193				2,217				3,385				2,959				8,278				—				24,032
Equity in earnings of affiliates			2,970				17,627				—				—				—				—				20,597
Distributions from equity method investees			4,003				19,818				—				—				—				—				23,821
Proportionate share of joint ventures’ interest, depreciation and allowance for equity funds used during construction			—				22,331				—				—				—				—				22,331
Maintenance capital expenditures			45,414				13,212				19,549				21,994				2,483				—				102,652

Summary Analysis of Quarter and Full Year Results by Segment (unaudited)
(tabular dollar amounts in thousands)

Intrastate Transportation and Storage

Gross Margin. The components of our intrastate transportation and storage segment gross margin were as follows:

		Three Months Ended
		December 31,												Years Ended December 31,
		2010				2009				Change				2010				2009				Change
Transportation fees		$	146,630			$	142,786			$	3,844			$	594,405			$	639,034			$	(44,629	)
Natural gas sales and other			26,538				26,518				20				110,002				91,879				18,123
Retained fuel revenues			34,589				37,867				(3,278	)			143,606				137,840				5,766
Storage margin, including fees			18,176				97,213				(79,037	)			61,495				129,496				(68,001	)
Total gross margin		$	225,933			$	304,384			$	(78,451	)		$	909,508			$	998,249			$	(88,741	)

Intrastate transportation and storage gross margin changes were primarily due to the following factors:

	•		Our intrastate transportation volumes increased approximately 17.7% during the quarter ended December 31, 2010 compared to the same period of 2009 resulting in increased transportation fees despite the continued low natural gas and basis differential environment. For the year ended December 31, 2010, the decrease in transportation fees resulted primarily from lower average basis differentials as compared to the year ended December 31, 2009 and less volume transported through our pipelines during the first six months of 2010 as compared to the first six months of 2009. We experienced a significant increase in volumes transported during the latter half of 2010 as our customers transported more natural gas under their existing long-term contracts.
	•		Margin from our natural gas sales and other activities increased $18.1 million for the year ended December 31, 2010 as compared to 2009 primarily due to more favorable margins on gas sales, realized gains related to our hedging activities, and favorable impacts from system optimization activities.
	•		Retained fuel revenues decreased during the quarter ended December 31, 2010 compared to the same period last year due to lower natural gas prices in 2010. The increase in retained fuel revenues for the year ended December 31, 2010 compared to 2009 was principally driven by higher average natural gas prices in 2010 compared to 2009. Hedging activities related to managing our retained fuel revenues are accounted for in natural gas sales and other margin.

Storage margin was comprised of the following:

		Three Months Ended
		December 31,												Years Ended December 31,
		2010				2009				Change				2010				2009				Change
Withdrawals from storage natural gas inventory (MMBtu)			4,436,479				11,750,263				(7,313,784	)			39,784,446				23,305,452				16,478,994
Margin on physical sales		$	612			$	23,601			$	(22,989	)		$	68,661			$	12,113			$	56,548
Fair value adjustments			13,005				58,967				(45,962	)			(57,157	)			14,630				(71,787	)
Settlements of financial derivatives			18,925				8,223				10,702				1,517				177,949				(176,432	)
Unrealized gains (losses) on derivatives			(24,319	)			(3,665	)			(20,654	)			8,842				(111,171	)			120,013
Net impact of natural gas inventory transactions			8,223				87,126				(78,903	)			21,863				93,521				(71,658	)
Revenues from fee-based storage			9,761				10,910				(1,149	)			40,674				39,779				895
Other costs			192				(823	)			1,015				(1,042	)			(3,804	)			2,762
Total storage margin		$	18,176			$	97,213			$	(79,037	)		$	61,495			$	129,496			$	(68,001	)

Decreases in our storage margin for both the quarter and year ended December 31, 2010 compared to the same periods of 2009 were principally driven by reductions in mark-to-market adjustments associated with the decline in spreads between the spot and forward prices prior to withdrawing natural gas from our Bammel storage facility. We also experienced lower realized margins from our withdrawals due to weaker market conditions in 2010 than in 2009.

Operating Expenses. Intrastate transportation and storage operating expenses were higher for the three months ended December 31, 2010 compared to 2009 primarily to increased maintenance expenses. For the year ended December 31, 2010 compared to 2009, intrastate transportation and storage operating expenses decreased primarily due to a decrease in the cost of natural gas consumed.

Depreciation and Amortization Expense. For the year ended December 31, 2010 compared to 2009, intrastate transportation and storage depreciation and amortization expense increased primarily due to the completion of pipeline expansion projects during the periods presented.

Selling, General and Administrative Expenses. Intrastate transportation and storage selling, general and administrative expenses increased between the periods primarily due to increased employee-related costs and allocated overhead in 2010.

Interstate Transportation

The interstate transportation segment data presented above includes the results of our Tiger pipeline subsequent to being placed in service in December 2010, but does not include our interstate pipeline joint ventures for which we reflect our proportionate share of income within “Equity in earnings of affiliates” below operating income in our consolidated statements of operations. We recorded equity in earnings related to MEP of $9.0 million and $14.0 million for the years ended December 31, 2010 and 2009, respectively, and $6.3 million for the three months ended December 31, 2009. We transferred substantially all of our 50% interest in MEP to ETE on May 26, 2010.

Revenues. Revenues increased for the year ended December 31, 2010 compared to 2009 primarily due to increased gas prices for Transwestern’s operational gas sales. In addition, transportation revenues increased for the three months ended December 31, 2010 compared to 2009 due to incremental revenues of $10.2 million for the Tiger pipeline since being placed into service in December 2010.

Operating Expenses. The increase in operating activities for the 2010 periods compared to 2009 primarily reflects increases in ad valorem taxes related to increased property values for the Phoenix pipeline expansion and increases related to gas imbalance activities.

Depreciation and Amortization Expense. Depreciation and amortization expense was higher in the 2010 periods compared to 2009 primarily due to Transwestern’s Phoenix pipeline expansion as well as incremental depreciation related to the Tiger pipeline being placed in service in December 2010.

Selling, General and Administrative Expenses. Selling, general and administrative expenses decreased in the 2010 periods compared to 2009 primarily due to lower employee-related costs and allocated overhead.

Midstream

Gross Margin. The components of our midstream segment gross margin were as follows:

		Three Months Ended
		December 31,												Years Ended December 31,
		2010				2009				Change				2010				2009				Change
Gathering and processing fee-based revenues		$	60,625			$	34,376			$	26,249			$	226,343			$	169,814			$	56,529
Non fee-based contracts and processing			57,783				50,462				7,321				204,078				141,061				63,017
Other			269				(393	)			662				(20,220	)			14,006				(34,226	)
Total gross margin		$	118,677			$	84,445			$	34,232			$	410,201			$	324,881			$	85,320

Midstream gross margin increased between the periods due to the net impact of the following:

	•		Gathering and processing fee-based revenues. Increased volumes in our North Texas system and increased volumes resulting from our recent acquisitions and other growth capital expenditures located in Louisiana and West Virginia provided an increase in our margin for the quarter and year ended December 31, 2010 as compared to 2009.
	•		Non fee-based contracts and processing margins. Non fee-based gross margin increased during the quarter and year ended December 31, 2010 compared to 2009 primarily due to higher processing volumes at our Godley plant and more favorable NGL prices.
	•		Other midstream gross margin. The decrease in other midstream gross margin for the year ended December 31, 2010 as compared to 2009 was due to losses from marketing activities primarily due to less favorable market conditions.

Operating Expenses. Midstream operating expenses increased between the periods primarily due to increases in maintenance expenses and increases in plant operating expenses and other operating expenses as a result of the increased volumes on our systems and processing/treating facilities.

Depreciation and Amortization. Midstream depreciation and amortization expense increased between the periods primarily due to incremental depreciation from the continued expansion of our systems.

Selling, General and Administrative Expenses. Midstream selling, general and administrative expenses decreased between the periods primarily due to a decrease in professional fees and a decrease in other expenses primarily due to lower employee-related costs (including allocated overhead expenses).

Retail Propane and Other Retail Propane Related

Gross Margin. Total gross margin decreased for the year ended December 31, 2010 primarily due to a decrease of $48.7 million attributable to unrealized gains and losses on commodity price risk management activities and also a decrease of approximately $13.5 million resulting from a decrease in volumes. The decrease in gross margin was offset by a favorable impact from increases in the average margin per gallon sold in 2010 over 2009. This favorable impact in margin per gallon sold was also reflected in the increased margin for the quarter ended December 31, 2010 compared to 2009.

Operating Expenses. For the quarter ended December 31, 2010 compared to 2009, operating expenses increased primarily due to accrual based adjustments between the quarters related to compensation, performance-based bonus, general operating expenses and bad debt reserves. For the year ended December 31, 2010 compared to 2009, operating expenses decreased primarily due to decreases in compensation and benefits expense and performance-based bonus accruals and a reduction in net business insurance reserves and claims.

Depreciation and Amortization Expense. For the year ended December 31, 2010 compared to 2009, the decrease in depreciation and amortization expense was primarily due to a net decrease in amortization expense of $1.9 million as a result of certain intangible assets becoming fully amortized during the periods and was partially offset by an increase in depreciation expense related to assets placed in service and acquisitions.

Selling, General and Administrative Expenses. The increase in selling, general and administrative expenses was primarily due to increased administrative expense allocations and increases in non-cash deferred compensation expense.