Energy Transfer includes more than 12,200 miles of intrastate pipeline, with 500 miles currently under construction, and 2,400 miles of interstate pipeline.

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Careers in today’s volatile midstream natural gas industry can be rewarding, but much like today’s general construction segment, the field has had trouble attracting younger, fresh talent. However, with Dallas-based Energy Transfer’s laid-back-yet-motivated culture, potential employees consistently knock on the door. According to COO-Midstream J. Michael Howard, jobseekers recognize the opportunity for career growth at a company on the rise.

“Our culture in general is a big part of what makes us attractive to potential employees,” Vice President of Investor Relations Renee Lorenz asserts. “I’ve been here 10 years myself; we have a comfortable atmosphere with a great talent pool that really makes coming to work pleasant.”

The publicly traded company may appear to work under a laid-back corporate culture, but its business strategies and plans are anything but casual. According to Howard, the company has built a foundation by providing comprehensive services to natural gas producers – companies that are steadily demanding more from midstream organizations.

These days, producers are active in [nontraditional] regions,” Howard says. “Since these are not traditional plays, producers are looking for flexibility [from] a company like Energy Transfer, where we offer gathering, treating and transportation to get their gas to a wider variety of markets, faster than the competition.”

Howard attributes much of the company’s success to the talent of its employees and the extensive hands-on experience of its executive leadership team. Chairman and CEO Kelcy L. Warren has assembled a team of aggressive, experienced professionals with the desire to expand the company through both acquisitions and organic growth. This team prides itself on listening to producers and building infrastructure to accommodate their requests.

Howard himself has spent more than 14 years in the industry. With a background in project engineering and asset management for the midstream gathering and transportation sector, he brings a high level of expertise to Energy Transfer. This has helped to attract strong management, engineers and field employees from his previous experience. Integrating them into the organization has been a key to successfully implementing the company’s organic growth strategy.

‘Attractive Growth’
Energy Transfer consists of two publicly traded entities, Energy Transfer Partners (ETP) LP and Energy Transfer Equity (ETE) LP. In addition to the midstream operations, ETP also includes more than 12,200 miles of intrastate pipeline, with 500 miles currently under construction, and 2,400 miles of interstate pipeline, according to the company. ETP is also one of the top-three retail marketers of propane in the country, it claims.

ETE owns nearly 62.5 million limited partner units,  which, combined with ETP assets, are worth approximately $20 billion. “Both offer a distinct opportunity for investors to participate in the attractive growth of the energy sector,” the company asserts. “ETP offers greater distribution income but less-accelerated growth; ETE offers less distribution income but faster growth.”

Propane Operations
In January 2004, Energy Transfer made a big move that cemented its position as a formidable player in the industry when it combined with fast-growing Heritage Propane. Formed in 1989 as a privately owned entity, the company went public in 1996. Heritage Propane remains one of the primary subsidiaries of Energy Transfer today.

Currently serving more than 1 million customers in 41 states, Heritage Propane continues to grow through acquisitions to extend its reach from coast to coast. “Since its inception, Heritage has completed more than 110 acquisitions, including the August 2000 U.S. Propane Transaction, which combined five of the nation’s 50 largest retail propane operations,” it states.

Energy Transfer’s propane operations continue to present a number of opportunities for growth and expansion. In April 2007, the company acquired Tampa, Fla.-based Hillsboro Gas Co. With this acquisition came more than 8,000 new customers, and sales exceeding 3 million gallons of propane, the company states.

Historical Expansion
Through the years, Energy Transfer’s propane operation has undergone significant expansions and acquisitions to develop a dominant position in the industry. In December 2003, the company saw marked growth by acquiring the assets of Metro Lift Propane. Located in 10 markets, Metro Lift was an important addition to Energy Transfer and Heritage Propane’s operations.

“Metro Lift has demonstrated the ability to expand rapidly and profitably,” Heritage Propane President and CEO Michael Krimbill said in a statement.  “We are confident about its ability to execute a proven business model into additional metropolitan areas and significantly expand this non-weather-sensitive propane operation over the next several years.”

Energy Transfer’s propane operations continue to grow through acquisitions and, in October 2004, the company was able to further increase its market share when it purchased the assets of Trenton Propane. “[Owner] Wendell Chumbley and his employees have built a quality business in this growth market north of the Dallas metropolitan area,” Energy Transfer Vice President of Corporate Development Bradley Atkinson said in a statement. “We are pleased to add the Trenton Propane customers as we continue to grow our retail propane operations. We welcome Wendell and all the other employees to Heritage Propane and Energy Transfer.”

The 2005 fiscal year brought substantial growth to the retail propane operation, as well. Between May 24 and June 28, Heritage Propane completed nine acquisitions related to the division. “We continue to acquire quality propane companies that enhance our Heritage Propane operations,” Heritage Propane President R.C. Mills said in a statement.

The following year brought continued growth as the company acquired the assets of the propane operations of Titan Energy Partners and Titan Energy GP LLC. The transaction closed in June 2006, according to Energy Transfer.

“The Titan propane assets primarily consist of retail propane operations in 33 states,” Energy Transfer said. “The operations are conducted from 146 district locations, and represent quality assets located in high-growth areas of the United States.”

In the 2005 fiscal year, Titan sold more than 200 million gallons to 325,000-plus customers. “The addition of the Titan assets will expand the partnership’s retail propane operations into additional states and several new operating territories in which it does not have operations,” Energy Transfer stated. “This expansion will further reduce the impact on the propane operations from weather patterns in any one area of the United States, while continuing the partnership’s focus on conducting its retail propane operations in attractive high-growth areas.”

Energy Transfer believes the acquisition of Titan Propane will help it further saturate its retail propane market. With the acquisition, the company will have “excellent geographic diversification and a market footprint that provides both internal growth as well as continued acquisition opportunities,” Atkinson said. “Both entities have seasoned management teams focused on exceptional customer service. We are excited about this development within our propane division and welcome the Titan employees to the family.”