Energy Transfer Announces Sale of 32.44% Stake in Entity of Rover Pipeline Project to Blackstone Energy Partners for Approximately $1.57 Billion

Energy Transfer Partners, L.P. (NYSE: ETP) today announced that its
wholly owned subsidiaries, Energy Transfer Interstate Holdings, LLC
(“ETIH”) and ET Rover Pipeline LLC (“HoldCo”), have signed an agreement
with funds managed by Blackstone Energy Partners and Blackstone Capital
Partners (“Blackstone”) whereby Blackstone will contribute approximately
$1.57 billion in cash in exchange for a 49.9% interest in HoldCo. HoldCo
owns a 65% interest in Rover Pipeline LLC. HoldCo and Rover Pipeline LLC
are constructing the Rover Pipeline and will be the operator of the
pipeline once in service.

Upon completion, the Rover Pipeline will be an approximately 700 mile
pipeline designed to transport 3.25 billion cubic feet of natural gas
per day from the Marcellus and Utica Shale production areas to markets
across the United States as well as into Union Gas Dawn Hub in Ontario,
Canada for redistribution back into the United States or into the
Canadian market.

The Blackstone investment will reimburse ETP for its pro rata share of
the construction costs incurred by ETP through the closing date in
connection with the Rover Pipeline, specified amounts of future
construction costs and certain additional payments to ETP. ETP plans to
use the proceeds to pay down debt and help fund its current growth
projects, thereby greatly reducing its equity issuances. The transaction
is expected to close in the fourth quarter of 2017, subject to customary
closing conditions.

Upon closing, HoldCo will be owned 50.1% by Energy Transfer and 49.9% by
Blackstone.

Latham & Watkins LLP acted as legal counsel to ETP. Vinson & Elkins
acted as legal counsel to Blackstone. Blackstone was advised by Intrepid
Partners LLC and by Morgan Stanley & Co. LLC, who was also the sole
provider of the committed debt financing.

Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited
partnership that owns and operates one of the largest and most
diversified portfolios of energy assets in the United States.
Strategically positioned in all of the major U.S. production basins, ETP
owns and operates a geographically diverse portfolio of complementary
natural gas midstream, intrastate and interstate transportation and
storage assets; crude oil, natural gas liquids (NGL) and refined product
transportation and terminalling assets; NGL fractionation; and various
acquisition and marketing assets. ETP’s general partner is owned by
Energy Transfer Equity, L.P. (NYSE: ETE). For more information, visit
the Energy Transfer Partners, L.P. website at energytransfer.com.

Energy Transfer Equity, L.P. (NYSE:ETE) is a master limited
partnership that owns the general partner and 100% of the incentive
distribution rights (IDRs) of Energy Transfer Partners, L.P. (NYSE: ETP)
and Sunoco LP (NYSE: SUN). ETE also owns Lake Charles LNG Company. On a
consolidated basis, ETE's family of companies owns and operates a
diverse portfolio of natural gas, natural gas liquids, crude oil and
refined products assets, as well as retail and wholesale motor fuel
operations and LNG terminalling. For more information, visit the Energy
Transfer Equity, L.P. website at energytransfer.com.

Forward-Looking Statements

This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject to a
variety of known and unknown risks, uncertainties, and other factors
that are difficult to predict and many of which are beyond management’s
control. These risks and uncertainties include the risks that the
proposed transaction may not be consummated or the benefits contemplated
therefrom may not be realized. An extensive list of other factors that
can affect ETP’s future results are discussed in its Annual Reports on
Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. Except as required by law, ETP
undertakes no obligation to update or revise any forward-looking
statement to reflect new information or events.

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