8-KOther EventsExhibits & Filings

Energy Transfer LP 8-K Report, Corporate Update (Oct 2, 2017)

Filed October 2, 2017For Securities:ETET-PI

Summary

Energy Transfer LP (ET) filed this 8-K on October 2, 2017, primarily to disclose retrospective adjustments to its previously filed 2016 Form 10-K. These adjustments are related to the accounting treatment of the pending sale of Sunoco LP's retail fuel outlet portfolio to 7-Eleven, Inc. for $3.3 billion, expected to close in Q4 2017. The company has reclassified the results of operations and cash flows of these retail convenience stores, including Laredo Taco Company, as discontinued operations, with the related assets and liabilities now classified as held for sale, effective for periods prior to January 1, 2017. This filing also reflects updates to segment information due to the merger of Energy Transfer Partners, L.P. and Sunoco Logistics Partners L.P. Investors should note that this 8-K primarily serves to amend prior financial reporting and should be read in conjunction with the original 2016 Form 10-K and subsequent quarterly filings (Q1 and Q2 2017) for a complete understanding of the company's financial position and operational changes.

Key Highlights

  • 1Retrospective financial statement revisions to the 2016 Form 10-K are being filed.
  • 2The primary reason for the revisions is the reclassification of Sunoco LP's retail convenience stores (including Laredo Taco Company) as discontinued operations.
  • 3This reclassification is due to the pending $3.3 billion sale of approximately 1,112 Sunoco LP operated retail fuel outlets to 7-Eleven, Inc.
  • 4The 7-Eleven transaction is expected to close in the fourth quarter of 2017.
  • 5Prior period financial statements have been adjusted to reflect these discontinued operations for periods before January 1, 2017.
  • 6Certain segment information has been updated to reflect the merger of Energy Transfer Partners, L.P. and Sunoco Logistics Partners L.P.
  • 7This 8-K should be read alongside the 2016 Form 10-K and subsequent 2017 quarterly filings for full context.

Frequently Asked Questions

The main purpose of this 8-K filing is to report retrospective revisions to Energy Transfer Equity's (ETE) consolidated financial statements from its 2016 Form 10-K. These revisions are primarily related to the accounting treatment of the sale of Sunoco LP's retail convenience stores and related assets to 7-Eleven, Inc.

Reporting the retail convenience stores as 'discontinued operations' means that their financial results (revenue, expenses, profit/loss) are presented separately from the company's ongoing, continuing operations. This is typically done when a company plans to sell or has sold a significant part of its business. The assets and liabilities associated with these operations are also classified as 'held for sale', indicating they are expected to be sold in the near future.

The closing of the asset purchase agreement for the sale of approximately 1,112 Sunoco LP operated retail fuel outlets to 7-Eleven, Inc. is expected to occur in the fourth quarter of 2017.

Yes, besides the retrospective adjustments for the discontinued operations, this filing also notes that certain segment information has been updated to reflect the recent merger of Energy Transfer Partners, L.P. and Sunoco Logistics Partners L.P.