Summary
This 8-K filing from Energy Transfer LP (ET) on December 10, 2021, details a significant secondary offering of common units. CenterPoint Energy Midstream, Inc. sold 100,000,000 common units of ET at a public offering price of $7.65 per unit. Importantly, ET itself did not receive any proceeds from this sale, as it was a sale by a selling unitholder. However, the Partnership and certain affiliated purchasers (officers and directors of the General Partner) did purchase approximately 20.6 million units at a slightly discounted price of $7.4492 per unit, indicating internal confidence in the company's valuation despite the large sale. The filing also includes a standard 60-day lock-up period for the selling unitholder, the Partnership, and certain directors and officers, preventing further disposals of common units without underwriter consent. This offering was conducted under an existing shelf registration statement, and the Underwriting Agreement contains customary representations, warranties, and indemnification provisions. Investors should note that this event primarily represents a change in beneficial ownership rather than a capital raise for Energy Transfer LP.
Key Highlights
- 1CenterPoint Energy Midstream, Inc. sold 100 million ET common units in a secondary offering.
- 2The offering price was $7.65 per common unit.
- 3Energy Transfer LP (the Partnership) did not receive any proceeds from the sale.
- 4The Partnership and affiliated purchasers bought approximately 20.6 million units at $7.4492 per unit.
- 5A 60-day lock-up period is in effect for the seller, Partnership, and certain officers/directors regarding their units.
- 6The sale was conducted under an effective shelf registration statement.