Energy Transfer LP Outlines Quarterly Distributions and Unit Redemption Strategy
Energy Transfer LP (ET), a prominent entity in the energy sector, has recently announced its quarterly cash distributions for its Series E and Series I Preferred Units. The declaration specifies that holders of Series E Preferred Units are set to receive $0.4750000 per unit, while those holding Series I Preferred Units will be allocated $0.2111 per unit. These distributions are slated for payment on February 15, 2024, to unitholders of record as of February 1, 2024.
In a parallel development, the company has issued a notice concerning the redemption of all outstanding Series C and Series D preferred units. The redemption price for Series C units is established at $25.607454 per unit, and Series D units at $25.619877 per unit. These prices are inclusive of unpaid distributions accrued until February 9, 2024, which is the appointed Redemption Date. The redemption process for the Series E preferred units is anticipated to begin with a notice at a later date, with the redemption itself scheduled for May 15, 2024.
Energy Transfer’s operational footprint is substantial, with ownership and operation of an extensive array of energy assets within the United States. Its network boasts over 125,000 miles of pipelines that span 44 states and access all major US production basins. The company’s operations are multifaceted, including natural gas midstream, intrastate and interstate transportation and storage, as well as crude oil, natural gas liquids (NGL), and refined product transportation and terminalling. Energy Transfer also owns Lake Charles LNG Company and maintains significant interests in Sunoco LP and USA Compression Partners, LP.
The company has issued forward-looking statements that reflect its expectations for the future, which are inherently subject to a variety of risks, uncertainties, and factors beyond its control. These statements do not serve as guarantees of future performance, and there is a possibility that actual results may vary from those projected. Energy Transfer has outlined its risk management strategy in its Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, and it reserves the right not to update forward-looking statements based on new information or future events.
Additionally, Energy Transfer LP has provided a qualified notice to nominees concerning federal tax withholding requirements for distributions to non-US stakeholders. The company has clarified that all distributions to such stakeholders are deemed effectively connected with a United States trade or business, thereby subjecting them to federal tax withholding at the highest applicable effective rate. Nominees bear the responsibility for withholding the necessary tax from distributions they manage on behalf of non-US stakeholders.
Energy Transfer LP has taken decisive measures to address its financial responsibilities through the redemption of certain preferred units and the declaration of quarterly cash distributions for others. The company’s robust energy infrastructure and strategic initiatives remain integral to the US energy framework. Energy Transfer’s adherence to regulatory mandates and management of its diverse asset portfolio highlight its commitment to operational integrity and regulatory compliance. As the company continues to evolve, it stands as a central participant in the energy industry, adeptly navigating the intricacies of market and regulatory demands.
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