DALLAS - Energy Transfer LP (NYSE: NYSE:ET) announced today an uptick in its quarterly cash distribution to $0.32 per common unit, marking a 3.2% increase from the second quarter the previous year. The enhanced distribution, which translates to $1.28 annually, is slated for payment on August 19, 2024, to unit holders on record by August 9, 2024.
The Dallas-based company, which owns and operates a large and diverse portfolio of energy assets across the United States, is set to release its second-quarter earnings after the market closes on Wednesday, August 7, 2024.
Following the earnings release, a conference call to discuss the quarterly results and provide updates on the company will take place at 3:30 p.m. Central Time on the same day. Interested parties can access the live webcast on Energy Transfer's website, with a replay available for a limited duration post-call.
Energy Transfer's strategic presence spans 44 states, with assets in every major U.S. production basin. Its operations are primarily focused on natural gas midstream, interstate and intrastate transportation and storage, as well as crude oil, natural gas liquids (NGL), and refined product transportation and terminalling. Moreover, the company owns Lake Charles LNG Company, along with significant interests in Sunoco LP (NYSE: SUN) and USA Compression (NYSE:USAC) Partners, LP (NYSE: USAC).
This press release includes forward-looking statements subject to risks and uncertainties that could affect future results, including future distribution levels. The company does not commit to updating these statements in light of new information or future events. Further details on these risks are available in the company's filings with the Securities and Exchange Commission.
For foreign investors, 100% of Energy Transfer's distributions are subject to federal tax withholding at the highest effective rate, as all distributions are connected with U.S. business income. Nominees are responsible for withholding the tax on distributions to foreign investors.
This news article is based on a press release statement from Energy Transfer LP.
In other recent news, Energy Transfer LP and Sunoco LP have formed a joint venture (JV) to merge their crude oil and water gathering operations in the Permian Basin. The JV, which will be operational from July 1, 2024, will see Energy Transfer as the operator, holding a majority stake of 67.5%, while Sunoco will retain a 32.5% interest. The combined infrastructure will include over 5,000 miles of pipelines and storage facilities with a capacity of over 11 million barrels of crude oil.
Energy Transfer has also acquired WTG Midstream Holdings LLC for approximately $3.25 billion, a move expected to enhance access to natural gas and natural gas liquids in the Permian Basin. This acquisition is forecasted to increase distributable cash flow per unit in fiscal years 2025 and 2027.
Energy Transfer has priced senior and junior subordinated notes offerings totaling $3.9 billion. The proceeds will be used to finance the acquisition of WTG Midstream, refinance debt, and redeem outstanding Series A preferred units.
In terms of analyst views, Goldman Sachs (NYSE:GS) has maintained a neutral rating on Energy Transfer, while Barclays (LON:BARC) Capital has kept an overweight rating. These ratings reflect a positive outlook on the company's potential, despite a rise in capital expenditure guidance. These are among the recent developments in Energy Transfer's ongoing efforts to maintain a diversified and extensive asset base and a positive long-term outlook.
InvestingPro Insights
Energy Transfer LP (NYSE: ET) has demonstrated a commitment to rewarding its shareholders, as evidenced by its latest increase in quarterly cash distribution. Reflecting positively on this commitment, an InvestingPro Tip highlights that the company has maintained dividend payments for 19 consecutive years, showcasing its stability and reliability as a dividend payer. Additionally, the company is known for its significant dividend yield, which stands at an attractive 7.85%, as per the latest metrics.
From a financial perspective, Energy Transfer's market capitalization is solid at $55.34 billion, and it trades with a P/E ratio of 14.76, which adjusts slightly lower to 14.12 for the last twelve months as of Q1 2024. The company's revenue for the same period is reported at $81.22 billion, although it has experienced a revenue decline of -8.1% over the last twelve months. Despite this, analysts have revised their earnings upwards for the upcoming period, according to another InvestingPro Tip, indicating a potential turnaround or better-than-expected performance ahead.
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