01—Abstract
Summary
Summary of the 8-K filed January 26, 2024. Cited figures are marked; the original filing is the authoritative source.
Energy Transfer LP (NYSE: ET) announced a quarterly cash distribution of $0.3150a per common unit for the quarter ended December 31, 2023, equal to $1.26 on an annualized basis.
The filing describes this as an increase of 3.3%b over the distribution for the fourth quarter of 2022. The distribution is payable on February 20, 2024, to unitholders of record as of the close of business on February 7, 2024. The announcement is primarily a routine distribution declaration, filed under Items 7.01 (Regulation FD) and 8.01 (Other Events).
The press release is furnished rather than filed, so it is not subject to Section 18 liability. The filing does not disclose the prior-quarter distribution amount, earnings, coverage ratio, or leverage metrics, so the increase can only be verified as a percentage relative to the fourth quarter of 2022. Investors should look to the company's fourth-quarter and full-year 2023 earnings release, scheduled for February 14, 2024 after market close, with a conference call at 3:30 p.m.
Central Time, for distribution coverage, cash flow, and the company's 2024 outlook. The release also contains a tax notice stating that 100%c of distributions to foreign investors are treated as effectively connected income subject to withholding at the highest applicable rate, with nominees acting as withholding agents.
02—Key points
Key Highlights
- Quarterly cash distribution of $0.3150 per common unit ($1.26 annualized) for Q4 2023, described as a 3.3% increase over Q4 2022.
- Record date is February 7, 2024; payment date is February 20, 2024.
- Q4 and full-year 2023 earnings are scheduled for release on February 14, 2024 after market close, with a conference call at 3:30 p.m. CT / 4:30 p.m. ET.
- The filing discloses no prior distribution amount, coverage ratio, or leverage data, so the increase cannot be independently quantified beyond the 3.3% figure.
- Foreign investors: 100% of distributions are treated as effectively connected income, subject to withholding at the highest applicable rate, with nominees acting as withholding agents.
- Energy Transfer describes its portfolio as over 125,000 miles of pipelines and associated infrastructure across 44 states, and it holds interests in Sunoco LP (~34%) and USA Compression Partners (~45%).
03—Questions
Frequently Asked Questions
How much is the distribution and when is it paid?
The distribution is $0.3150 per common unit for the quarter ended December 31, 2023 ($1.26 annualized). It will be paid on February 20, 2024, to unitholders of record as of the close of business on February 7, 2024.
Is this distribution an increase?
Yes. The company states the distribution is up 3.3% compared with the fourth quarter of 2022. The filing does not state the prior distribution amount directly.
When will investors get more detail on the distribution's sustainability?
Energy Transfer plans to release fourth-quarter and full-year 2023 results on February 14, 2024, after market close, and will hold a conference call that day to discuss results and provide a 2024 outlook.
What tax treatment applies to distributions for foreign investors?
The company states that 100% of its distributions to foreign investors are attributable to income effectively connected with a U.S. trade or business and are subject to federal withholding at the highest applicable effective tax rate. Nominees, not Energy Transfer, act as withholding agents.
Is the press release considered filed for liability purposes?
No. Under General Instruction B.2 of Form 8-K, Exhibit 99.1 is furnished rather than filed, so it is not deemed filed for purposes of Section 18 of the Exchange Act.
04—Continue