Energy Transfer Announces Increase in Quarterly Cash Distribution

Rhea-AI Summary

Energy Transfer LP (ET) announced a 3.3% increase in its quarterly cash distribution for the fourth quarter of 2023, amounting to $0.3150 per Energy Transfer common unit. The distribution will be paid on February 20, 2024, to unitholders of record as of February 7, 2024. Additionally, the company plans to release its earnings for the fourth quarter and full year of 2023 on February 14, 2024, and will conduct a conference call to discuss quarterly results and provide an outlook for 2024. Energy Transfer LP is a publicly traded limited partnership with a diversified portfolio of energy assets in the United States.

Positive

• 3.3% increase in quarterly cash distribution for Q4 2023
• Earnings release planned for February 14, 2024
• Diversified portfolio of energy assets in the United States

Negative

• None.

Insights

Financial Analyst

The announcement by Energy Transfer LP of an increased quarterly cash distribution to $0.3150 per common unit represents a 3.3 percent hike from the previous year. This move is indicative of a strong financial position and a commitment to returning value to unitholders. The increase in distribution often signals confidence in the company's cash flow stability and future earnings potential. It is essential to examine the company's payout ratio and compare it with industry standards to assess the sustainability of these distributions.

Moreover, investors should consider the company's debt levels and capital expenditure plans, as these factors can influence the ability to maintain or increase distributions. A detailed review of the earnings report, once released, will provide further insight into the company's operational efficiency, cost management and revenue streams, which are crucial for evaluating the long-term viability of the increased cash distribution.

Market Research Analyst

Energy Transfer's strategic network, which spans across 44 states and includes assets in all major U.S. production basins, positions it advantageously within the energy sector. The diversification of its portfolio, encompassing natural gas midstream, transportation, storage and NGL fractionation, is a significant competitive edge. This comprehensive coverage can mitigate sector-specific risks and provide stability in volatile market conditions.

Investors should monitor the market's reaction to the distribution increase and upcoming earnings report, as these can impact the company's stock performance. Additionally, the company's ownership stakes in Sunoco LP and USA Compression Partners, LP offer a diversified income stream that may contribute to the overall financial health of the partnership. Understanding the interplay between these assets and Energy Transfer's core operations is critical for a holistic market analysis.

Energy Sector Analyst

The energy sector is highly sensitive to fluctuations in commodity prices, regulatory changes and geopolitical events. Energy Transfer's extensive pipeline and energy infrastructure assets place the company at a critical junction of energy supply and demand. As the energy market transitions with increased focus on sustainability and renewable sources, it is imperative to evaluate how Energy Transfer is adapting its operations and asset portfolio to meet these shifts.

Investors should assess the company's strategic initiatives and capital investments in the context of the broader energy transition. The upcoming company update and outlook for 2024 will be telling in this regard, providing insights into Energy Transfer's strategic direction and how it may influence the company's financial performance and market positioning in the evolving energy landscape.

DALLAS--(BUSINESS WIRE)-- Energy Transfer LP (NYSE: ET) today announced an increase in its quarterly cash distribution to $0.3150 per Energy Transfer common unit ($1.26 on an annualized basis) for the fourth quarter ended December 31, 2023.

This cash distribution per Energy Transfer common unit will be paid on February 20, 2024 to unitholders of record as of the close of business on February 7, 2024, and is an increase of 3.3 percent as compared to the fourth quarter of 2022.

In addition, as previously announced, Energy Transfer plans to release earnings for the fourth quarter and full year of 2023 on Wednesday, February 14, 2024, after the market closes. The company will also conduct a conference call on Wednesday, February 14, 2024 at 3:30 p.m. Central Time/4:30 p.m. Eastern Time to discuss quarterly results and provide a company update including an outlook for 2024. 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 125,000 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 34% of the outstanding common units of Sunoco LP (NYSE: SUN), and the general partner interests and approximately 45% of the outstanding common units of USA Compression Partners, LP (NYSE: USAC). For more information, visit the Energy Transfer LP website at 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/20240125317222/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 the increase in quarterly cash distribution announced by Energy Transfer LP for Q4 2023?

Energy Transfer LP announced a 3.3% increase in its quarterly cash distribution for the fourth quarter of 2023, amounting to $0.3150 per Energy Transfer common unit.

When will the cash distribution per Energy Transfer common unit be paid?

The distribution will be paid on February 20, 2024, to unitholders of record as of February 7, 2024.

When will Energy Transfer LP release its earnings for the fourth quarter and full year of 2023?

The company plans to release its earnings for the fourth quarter and full year of 2023 on February 14, 2024.

What is the business model of Energy Transfer LP?

Energy Transfer LP is a publicly traded limited partnership with a diversified portfolio of energy assets in the United States.