Question-and-Answer Session
Operator
Thank you, Sir. We will now begin the question-and-answer session. [Operator Instructions]. Our first question comes from Mark Reichman of A.G. Edwards. Sir, you line is open.
Mark L. Reichman - A. G. Edwards & Sons, Inc.
Good morning. I just... I really have two questions; the first question is a follow-up from Friday's Enterprise Call, and that is the strategy of increasing exposure to interstate pipelines, and I guess Enterprise Products has the potential to join in a venture with Boardwalk on Gulf Crossing, and then EPE has made the investment in Energy Transfer Equity, and I just thought if you could may be clarify your strategy on increasing the GP and the partnership's exposure to the interstate pipeline segment?
Michael A. Creel - President and Chief Executive Officer
Sure, Mark. We looked at the business of Energy Transfer Partners as being really an excellent fit for us. They have got a great position in interstate pipelines which we do not. We have got a couple of small FERC-regulated pipelines. But certainly with their position in Texas, their Transwestern acquisition they have made recently, the Houston Pipeline they have got a great position that we think has good long-term growth potential. With respect to potential projects to move gas from East Texas to Alabama, we have been in discussions. It's not clear what's going to happen with that, if we are going to forward or not. But irrespective of that, we have got an exciting project that we have for our Texas intrastate pipeline to expand capacity there. And we would expect to have capacity rights on any pipeline that gets built moving gas out of East Texas. So, we think we will benefit whether we are participating in that or not. I really can't tell you the status of Energy Transfer's project. We really aren't privy to any non-public information there. But certainly have confidence in their ability to grow their business.
Mark L. Reichman - A. G. Edwards & Sons, Inc.
Thank you. And the second question is on, how do you differentiate in terms of whether the general partner makes the investment or EPD? Is the general partner strictly making investments in the other GPs and how do you think about making those investments, or for that matter, divestitures? Is it based on increasing the leverage of the distribution growth like you mentioned during this call, or are you looking for stability of buying a GP that's adding stability to those cash flows? How do you think about managing that portfolio of investments at the GP level? And also, how your decision process for deciding whether the GP makes the investment or the operating partnership?
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