Energy Transfer Announces Increase in Quarterly Cash Distribution

Rhea-AI Summary

Energy Transfer (ET) has announced an increase in its quarterly cash distribution to $0.3175 per common unit for the first quarter of 2024, marking a 3.3% increase from the previous year. The distribution will be paid on May 20, 2024, to shareholders of record as of May 13, 2024. Additionally, the company plans to release its first-quarter earnings on May 8, 2024, and will conduct a conference call to discuss the results and provide an update.

Positive

• Energy Transfer (ET) has increased its quarterly cash distribution to $0.3175 per common unit for the first quarter of 2024, up by 3.3% compared to the previous year.
• The cash distribution will be paid on May 20, 2024, to shareholders of record as of May 13, 2024.
• Energy Transfer (ET) will release its first-quarter earnings on May 8, 2024, after the market closes.
• A conference call will be held on the same day at 3:30 p.m. Central Time/4:30 p.m. Eastern Time to discuss the quarterly results and provide a company update.
• The conference call will be broadcast live via an internet webcast on Energy Transfer's website at energytransfer.com.
• Energy Transfer (ET) is a publicly traded partnership with a diverse portfolio of energy assets across the United States.
• The company owns and operates more than 125,000 miles of pipeline and associated energy infrastructure, with assets in 44 states.
• Energy Transfer's core operations include natural gas midstream, transportation and storage assets, crude oil and NGL transportation, terminalling assets, and NGL fractionation.
• Energy Transfer also has ownership interests in Lake Charles LNG Company, Sunoco LP (NYSE: SUN), and USA Compression Partners, LP (NYSE: USAC).

Negative

• None.

Insights

Financial Analyst

The increase in quarterly cash distribution from Energy Transfer represents a tangible return for investors and indicates the company's confidence in its financial stability and cash flow generation. A 3.3 percent raise, while modest, is a positive signal for unitholders, suggesting a sustainable and potentially growing income stream.

When a company with a significant footprint in energy infrastructure such as Energy Transfer raises its distribution, it's usually backed by strong operational performance or an advantageous position in the market. Investors should monitor subsequent earnings releases and conference calls to better understand the underlying performance metrics driving this increase. Further scrutiny should be given to the company's debt levels, coverage ratios and any changes in revenue, particularly due to volatile energy prices or regulatory changes that could affect future distributions.

Focusing on the long-term implications, this could indicate expectations of steady or improving cash flows. Investors might also interpret the increase as a reaffirmation of the company's strategic initiatives, especially in the areas where it has a competitive advantage such as natural gas midstream and interstate transportation. However, as commodity-based distribution can fluctuate with market conditions, investors should remain vigilant about sector volatility.

Energy Sector Analyst

From an energy market perspective, Energy Transfer's portfolio diversification across numerous energy assets and significant pipeline mileage offers a degree of insulation against regional market fluctuations. The presence in all major U.S. production basins speaks to a strategic advantage that can support consistent cash flows and potentially fund future distribution increases.

The company's involvement in natural gas liquids (NGL) and refined product transportation is particularly noteworthy given the evolving energy landscape. With the changing dynamics in global energy supply and demand, Energy Transfer's NGL fractionation and LNG interests could position it favorably as the industry shifts more towards cleaner energy sources. The company's growth prospects in this area should be a point of interest for investors, as it may impact future performance and distribution sustainability.

DALLAS--(BUSINESS WIRE)-- Energy Transfer LP (NYSE: ET) today announced an increase in its quarterly cash distribution to $0.3175 per Energy Transfer common unit ($1.27 on an annualized basis) for the first quarter ended March 31, 2024.

This cash distribution per Energy Transfer common unit will be paid on May 20, 2024 to unitholders of record as of the close of business on May 13, 2024, and is an increase of 3.3 percent as compared to the first quarter of 2023.

In addition, as previously announced, Energy Transfer plans to release earnings for the first quarter of 2024 on Wednesday, May 8, 2024, after the market closes. The company will also conduct a conference call on Wednesday, May 8, 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 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 39% 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/20240423530579/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 amount for the first quarter of 2024?

Energy Transfer (ET) has increased its quarterly cash distribution to $0.3175 per common unit for the first quarter of 2024.

When will the increased cash distribution be paid to Energy Transfer (ET) shareholders?

The cash distribution will be paid on May 20, 2024, to shareholders of record as of May 13, 2024.

When is Energy Transfer (ET) releasing its first-quarter earnings for 2024?

Energy Transfer (ET) will release its first-quarter earnings on May 8, 2024, after the market closes.

How can investors access the conference call to discuss Energy Transfer's (ET) quarterly results?

Investors can access the conference call on May 8, 2024, at 3:30 p.m. Central Time/4:30 p.m. Eastern Time via an internet webcast on Energy Transfer's website at energytransfer.com.

What are the core operations of Energy Transfer (ET) as mentioned in the press release?

Energy Transfer's core operations include natural gas midstream, transportation and storage assets, crude oil and NGL transportation, terminalling assets, and NGL fractionation.