DALLAS - Energy Transfer LP (NYSE:ET) has priced its offerings of senior and junior subordinated notes totaling $3.9 billion, the company said today. The offerings include $1.0 billion of 5.250% senior notes due 2029, $1.25 billion of 5.600% senior notes due 2034, $1.25 billion of 6.050% senior notes due 2054, and $400 million of 7.125% fixed-to-fixed reset rate junior subordinated notes due 2054.
The senior and junior subordinated notes are set to settle on June 21, 2024, subject to customary closing conditions. Energy Transfer plans to use the proceeds to finance the acquisition of WTG Midstream Holdings LLC, refinance debt, redeem outstanding Series A preferred units, and for general partnership purposes.
Energy Transfer also announced the redemption of all outstanding Series A preferred units at a price of $1,009.87899 per unit, which includes unpaid distributions up to the expected settlement date.
The offerings are managed by Barclays Capital Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc., TD Securities (USA) LLC, and Wells Fargo Securities, LLC as joint book-running managers.
This news is based on a press release statement and the offerings are being made under an effective shelf registration statement filed with the Securities and Exchange Commission. Energy Transfer owns and operates a large and diverse portfolio of energy assets in the United States, including pipelines and energy infrastructure across 44 states. The company has significant operations in natural gas midstream, transportation, storage, and terminalling assets, among other areas in the energy sector.
In other recent news, Energy Transfer LP has been making strategic moves to solidify its position in the energy infrastructure landscape. The Dallas-based company reported robust financial performance, with an increase in adjusted EBITDA and distributable cash flow (DCF) in the first quarter of 2024. Analysts from Goldman Sachs and Barclays Capital maintained a neutral and an overweight rating on the company, respectively, reflecting a positive outlook on the company's potential.
Energy Transfer's strategic acquisitions, including the $3.25 billion purchase of WTG Midstream Holdings, have been a key focus. The acquisition is expected to enhance Energy Transfer's operations and access to natural gas and natural gas liquids (NGLs) in the Permian Basin, contributing to incremental revenue. However, there is some market skepticism about the quality of the WTG assets, given they had been on the market for a significant period.
Furthermore, Energy Transfer's planned increase in growth capital expenditures by $400 million in 2024 signals a strategic move towards sustainable long-term growth. These recent developments indicate Energy Transfer's commitment to maintaining a diversified and extensive asset base and a positive long-term outlook.
InvestingPro Insights
Energy Transfer LP (NYSE:ET) has recently made headlines with its strategic financial moves, and investors are keeping a close eye on the company’s performance metrics and stability indicators. A glance at the real-time data from InvestingPro reveals some key insights into the company's financial health and stock behavior.
InvestingPro Data shows a robust market capitalization of $52.1 billion, underlining the company's significant presence in the market. Its Price/Earnings (P/E) ratio stands at 13.99, with a slight adjustment to 13.32 when considering the last twelve months as of Q1 2024. This indicates a potentially favorable valuation relative to earnings. Furthermore, Energy Transfer boasts a strong dividend yield of 8.22%, a testament to its commitment to returning value to shareholders, as evidenced by its track record of maintaining dividend payments for 19 consecutive years—an InvestingPro Tip highlighting the company’s reliability in shareholder returns.
Another InvestingPro Tip that stands out is the company's position as a prominent player in the Oil, Gas & Consumable Fuels industry. With a diverse portfolio of energy assets, Energy Transfer's strategic offerings and acquisitions, such as that of WTG Midstream Holdings LLC, are likely to further cement its industry standing.
Investors interested in further insights will find additional InvestingPro Tips on the company's profile at https://www.investing.com/pro/ET. For those looking to dive deeper into Energy Transfer’s financials and stock performance, using the coupon code PRONEWS24 will secure an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a wealth of exclusive financial analytics and data. There are numerous additional InvestingPro Tips available, each offering strategic perspectives for informed investment decisions.
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