01—Abstract
Summary
Summary of the 8-K filed April 24, 2024. Cited figures are marked; the original filing is the authoritative source.
Energy Transfer LP (NYSE: ET) announced on April 24, 2024 a quarterly cash distribution of $0.3175a per common unit ($1.27 annualized) for the quarter ended March 31, 2024.
The payout is described as a 3.3%b increase compared with the first quarter of 2023. Unitholders of record as of the close of business on May 13, 2024 will receive the payment on May 20, 2024. The filing is largely routine from a corporate-action standpoint: it is a distribution declaration furnished under Regulation FD and Item 8.01, with no new financial results, guidance, or transaction disclosures included.
The company also said it will release first-quarter 2024 earnings after market close on May 8, 2024, with a conference call at 3:30 p.m. CT / 4:30 p.m. ET that day.
Investors will likely look to that earnings release for the more substantive read on cash flow coverage and the sustainability of the distribution. The press release includes a tax notice stating that 100%c of distributions to foreign investors are treated as effectively connected income subject to federal withholding at the highest applicable rate, with nominees acting as withholding agents. Non-U.S. holders should factor this into their after-tax return expectations.
02—Key points
Key Highlights
- Quarterly distribution of $0.3175 per common unit, or $1.27 annualized, for the quarter ended March 31, 2024
- Distribution represents a 3.3% increase versus the first quarter of 2023
- Record date is May 13, 2024; payment date is May 20, 2024
- First-quarter 2024 earnings release scheduled for May 8, 2024 after market close, with a conference call the same day at 4:30 p.m. ET
- Company operates more than 125,000 miles of pipeline and associated energy infrastructure across 44 states
- Ownership stakes include Lake Charles LNG, approximately 34% of Sunoco LP common units, and approximately 39% of USA Compression Partners common units
- 100% of distributions to foreign investors are treated as effectively connected income subject to the highest applicable federal withholding rate
03—Questions
Frequently Asked Questions
How much is the distribution and when will it be paid?
The distribution is $0.3175 per common unit for the quarter ended March 31, 2024, or $1.27 annualized. It is payable on May 20, 2024 to unitholders of record as of the close of business on May 13, 2024.
Is this distribution an increase?
Yes. The press release states the payout is up 3.3% compared with the first quarter of 2023.
Does this filing include new financial results or guidance?
No. The 8-K covers the distribution declaration and the scheduling of the first-quarter 2024 earnings release and conference call. Financial results and any updated outlook will come with the May 8, 2024 earnings release.
What should foreign investors know about tax treatment?
Energy Transfer states that 100% of distributions to foreign investors are attributable to income effectively connected with a U.S. trade or business. Distributions are subject to federal withholding at the highest applicable effective rate, and nominees, not the partnership, act as withholding agents.
When and how can investors hear management's commentary on results?
The company will release first-quarter 2024 earnings on May 8, 2024 after the market closes and host a live webcast conference call that day at 3:30 p.m. Central Time / 4:30 p.m. Eastern Time. A replay will be available for a limited time on the company's website, energytransfer.com.
04—Continue