Energy Transfer LP (NYSE: NYSE:ET), a major U.S. energy company, has initiated a secondary public offering of 38,755,996 of its common units. These units are being offered by WTG Midstream LLC and an affiliate of Stonepeak, known as the Selling Unitholders.
The proceeds from this offering will go entirely to the Selling Unitholders, with Energy Transfer not selling any units nor receiving any proceeds from the sale.
Barclays has been appointed as the underwriter for the offering, which is contingent on market conditions. There is no guarantee regarding the completion, size, or terms of the offering.
The offering is being made under a registration statement with the U.S. Securities and Exchange Commission (SEC), which became effective as of July 31, 2024. Interested parties can obtain copies of the prospectus and prospectus supplement from Barclays or by visiting the SEC's website.
Energy Transfer boasts a vast and varied portfolio of energy assets across the United States, including over 130,000 miles of pipeline infrastructure. Their operations cover natural gas midstream, transportation, storage, and fractionation of crude oil and natural gas liquids (NGLs), among other services.
Recently, Energy Transfer LP and Sunoco LP have formed a joint venture, merging their crude oil and produced water gathering operations in the Permian Basin. Energy Transfer will operate the venture, holding a majority stake of 67.5%, with Sunoco retaining a 32.5% interest. The infrastructure of the joint venture will include over 5,000 miles of pipelines and storage facilities capable of holding more than 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 the company's operations and access to natural gas and natural gas liquids in the Permian Basin. The acquisition is anticipated to contribute to incremental revenue despite some market skepticism about the quality of the WTG assets.
InvestingPro Insights
As Energy Transfer LP (NYSE: ET) navigates through its latest secondary public offering, investors are keenly observing the company's financial health and market performance. According to InvestingPro data, Energy Transfer stands with a market capitalization of $55.61 billion, reflecting its substantial presence in the energy sector. The company's Price/Earnings (P/E) ratio is currently at 14.25, aligning with industry standards and suggesting a balanced valuation relative to its earnings. Moreover, Energy Transfer's dividend yield is notably high at 8.04%, which is particularly attractive to income-focused investors.
Two InvestingPro Tips highlight the company's financial dynamics in relation to the market. Analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's profitability. Additionally, Energy Transfer has a history of rewarding its shareholders, having maintained dividend payments for 19 consecutive years, underscoring its commitment to returning value to investors.
Investors considering Energy Transfer as part of their portfolio can find further insights on the company's performance and prospects. InvestingPro offers a wealth of additional tips, with more detailed analysis available at InvestingPro's dedicated Energy Transfer page.
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