Energy Transfer Announces Increase in Quarterly Cash Distribution

Rhea-AI Summary

Energy Transfer LP (NYSE: ET) has announced a 3.2% increase in its quarterly cash distribution to $0.32 per common unit ($1.28 annualized) for Q2 2024. The distribution will be paid on August 19, 2024 to unitholders of record as of August 9, 2024. Energy Transfer plans to release Q2 2024 earnings on August 7, 2024, after market close, followed by a conference call at 3:30 p.m. CT/4:30 p.m. ET.

Energy Transfer operates a diverse portfolio of energy assets in the U.S., including over 130,000 miles of pipeline across 44 states. The company's strategic network spans major U.S. production basins, with operations in natural gas midstream, transportation, storage, crude oil, NGL, and refined product assets.

Positive

• Quarterly cash distribution increased by 3.2% compared to Q2 2023
• Extensive energy asset portfolio with over 130,000 miles of pipeline across 44 states
• Diversified operations in natural gas, crude oil, NGL, and refined product sectors

Negative

• None.

Insights

Financial Analyst

Energy Transfer's announcement of a 3.2% increase in its quarterly cash distribution is a noteworthy development for investors. The new distribution of $0.32 per unit ($1.28 annualized) signals the company's confidence in its cash flow generation and commitment to returning value to unitholders. This increase, while modest, is particularly significant in the current economic climate where many companies are cutting or suspending distributions.

From a financial perspective, this raise demonstrates Energy Transfer's robust financial health and operational stability. The company's diverse portfolio of energy assets, spanning 44 states and including over 130,000 miles of pipeline, provides a strong foundation for consistent cash flow. This diversification helps mitigate risks associated with regional market fluctuations or sector-specific challenges.

However, investors should note that while distribution increases are generally positive, they should be evaluated in the context of the company's overall financial strategy. It's important to ensure that the distribution is sustainable and doesn't come at the expense of necessary capital investments or balance sheet strength. Energy Transfer's upcoming earnings release on August 7 will provide more insight into the company's financial position and the sustainability of this distribution increase.

Lastly, Energy Transfer's ownership stakes in Sunoco LP (21%) and USA Compression Partners (39%) add another layer of income diversification, potentially contributing to the company's ability to sustain and grow its distribution over time. These strategic investments could provide additional cash flow streams to support future distribution growth.

Energy Industry Expert

Energy Transfer's distribution increase reflects broader trends in the midstream energy sector. As the industry continues to recover from recent volatility, many companies are focusing on returning value to shareholders through increased distributions or share buybacks. This move by Energy Transfer aligns with this industry trend and may be seen as a positive signal by investors.

The company's extensive infrastructure network, including natural gas, crude oil and NGL assets, positions it well to capitalize on the ongoing energy transition. While renewable energy is gaining traction, natural gas is expected to play a important role as a 'bridge fuel' in the coming decades. Energy Transfer's significant presence in natural gas midstream operations could be a key driver of future growth and distribution sustainability.

Moreover, the company's ownership of Lake Charles LNG Company is particularly noteworthy. As global demand for LNG continues to rise, especially in light of geopolitical events affecting energy markets, this asset could become increasingly valuable. The potential for expansion in LNG operations could provide additional growth avenues for Energy Transfer in the medium to long term.

However, investors should also consider potential regulatory and environmental challenges facing the energy sector. Increased scrutiny on pipeline projects and shifting energy policies could impact future growth opportunities. Energy Transfer's ability to navigate these challenges while maintaining its operational efficiency will be important for long-term success and continued distribution growth.

DALLAS--(BUSINESS WIRE)-- Energy Transfer LP (NYSE: ET) today announced an increase in its quarterly cash distribution to $0.32 per Energy Transfer common unit ($1.28 on an annualized basis) for the second quarter ended June 30, 2024.

This cash distribution per Energy Transfer common unit will be paid on August 19, 2024 to unitholders of record as of the close of business on August 9, 2024, and is an increase of 3.2 percent as compared to the second quarter of 2023.

In addition, as previously announced, Energy Transfer plans to release earnings for the second quarter of 2024 on Wednesday, August 7, 2024, after the market closes. The company will also conduct a conference call on Wednesday, August 7, 2024 at 3:30 p.m. Central Time/4:30 p.m. Eastern Time to discuss quarterly results and provide a company update. The conference call will be broadcast live via an internet webcast, which can be accessed on Energy Transfer’s website at energytransfer.com. The call will also be available for replay on Energy Transfer’s website for a limited time.

Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with more than 130,000 miles of pipeline and associated energy infrastructure. Energy Transfer’s strategic network spans 44 states with assets in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (“NGL”) and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and approximately 21% of the outstanding common units of Sunoco LP (NYSE: SUN), and the general partner interests and approximately 39% of the outstanding common units of USA Compression Partners, LP (NYSE: USAC). For more information, visit the Energy Transfer LP website at www.energytransfer.com.

Forward Looking Statements

This news 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. An extensive list of factors that can affect future results, including future distribution levels, are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.

Qualified Notice

This release serves as qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note that one hundred percent (100%) of Energy Transfer LP’s distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Energy Transfer LP’s distributions to foreign investors are subject to federal tax withholding at the highest applicable effective tax rate. Nominees, and not Energy Transfer LP, are treated as withholding agents responsible for withholding distributions received by them on behalf of foreign investors. For purposes of Treasury Regulation section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent (100%) of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold.

The information contained in this press release is available on our website at energytransfer.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725482608/en/

Investor Relations:

Bill Baerg

Brent Ratliff

Lyndsay Hannah

214-981-0795

Media Relations:

Vicki Granado

214-840-5820

Source: Energy Transfer LP

FAQ

What is Energy Transfer's (ET) new quarterly cash distribution for Q2 2024?

Energy Transfer's new quarterly cash distribution for Q2 2024 is $0.32 per common unit, or $1.28 on an annualized basis.

When will Energy Transfer (ET) pay the Q2 2024 cash distribution?

Energy Transfer will pay the Q2 2024 cash distribution on August 19, 2024, to unitholders of record as of August 9, 2024.

By what percentage did Energy Transfer (ET) increase its quarterly cash distribution?

Energy Transfer increased its quarterly cash distribution by 3.2% compared to the second quarter of 2023.

When will Energy Transfer (ET) release its Q2 2024 earnings?

Energy Transfer plans to release its Q2 2024 earnings on Wednesday, August 7, 2024, after the market closes.