2007 ETP K-1's are expected to be mailed to investors on February 25, 2008. You may access your K-1's online at www.taxpackagesupport.com/etp. Please note, this data will not be available until February 25, 2008.

In addition, our K-1 Support Center can assist with changes and email or fax a copy of your revised K-1.

See notes below for additional important information regarding your 2007 K-1 tax package.

Energy Transfer Partners, L.P. (ETP) is a publicly traded master limited partnership. Unitholders are limited partners in the Partnership and receive cash distributions. A partnership generally is not subject to federal or state income tax. However, the annual income, gains, losses, deductions, and credits of the Partnership flow through to the Unitholders, who are required to report their allocated share of these amounts on their individual tax returns as though the Unitholder had received these items directly.

You will receive a K-1 tax package summarizing your allocated share of the Partnership's reportable tax items for the tax year. We estimate that Schedule K-1 tax packages will be distributed to Unitholders of record about the end of February for the preceding calendar year.

Your K-1 tax package will include the following information:

• Schedule K-1 (Form 1065)
• Partner's Instructions for Schedule K-1
• Individualized Income Tax Reporting Package Instructions
• State Schedule
• Ownership Schedule
• Sales Schedule (if applicable)

If you should have any questions regarding the Schedule K-1, you may call our support center for help:

K-1 Support Center: 800-792-7904
Monday-Friday 8a.m–5p.m. (CST)

They can assist with the following:

• Obtain copies of missing or lost K-1's for ETP investors
• Email or fax copies of your current or prior year Schedule K-1
• Correct errors or omissions in your current year Schedule K-1
• Answer general questions regarding the information provided in your tax package (see above list of items included in your tax package)

Please note these important events:

• For the tax year 2007, ETP investors will receive two K-1s for their ownership during 2007. This is a result of a technical tax termination, which is due to a change in ownership of 50% or more within a 12-month period and is for tax purposes only. This does not affect our classification as a partnership for federal income tax purposes or otherwise affect the nature or extent of our "qualifying income" for federal tax purposes. Next year, you should only receive one K-1 as in the past, assuming there are no other tax events that would cause this to change.
• In March 2005, ETP completed a two-for-one unit split. The Partnership distributed one additional Partnership unit for each Partnership unit held as of February 28, 2005. These additional units distributed will be shown on your 2005 K-1.
• Prior to March 2004 the Partnership traded under the name Heritage Propane Partners, L.P. and was listed on the NYSE under the ticker symbol HPP. Consequently, K-1's provided prior to 2004 would have been issued under the name of Heritage Propane Partners, L.P.

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