01—Abstract
Summary
Summary of the 8-K filed July 25, 2024. Cited figures are marked; the original filing is the authoritative source.
Energy Transfer LP (NYSE: ET) announced on July 25, 2024 a quarterly cash distribution of $0.32a per common unit ($1.28 annualized) for the quarter ended June 30, 2024.
The distribution represents a 3.2%b increase compared with the second quarter of 2023, signaling management's continued confidence in cash flow generation and its commitment to returning cash to unitholders. The distribution will be paid on August 19, 2024 to unitholders of record as of the close of business on August 9, 2024. Investors should note that the release also confirms second-quarter 2024 earnings will be released after market close on August 7, 2024, with a conference call the same day at 3:30 p.m.
Central Time, which will provide the first detailed read on whether coverage and cash flow support the higher payout. The filing also includes a tax notice stating that 100%c of 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 rate, with nominees acting as withholding agents. This is a material consideration for non-U.S. unitholders and should be reviewed with tax advisors.
02—Key points
Key Highlights
- Quarterly cash distribution declared at $0.32 per common unit, or $1.28 annualized, for the quarter ended June 30, 2024.
- Distribution represents a 3.2% increase versus the second quarter of 2023.
- Record date is August 9, 2024; payment date is August 19, 2024.
- Q2 2024 earnings release and conference call scheduled for August 7, 2024 (call at 3:30 p.m. CT / 4:30 p.m. ET).
- Partnership operates more than 130,000 miles of pipeline and associated energy infrastructure across 44 states.
- Foreign investors face full federal withholding at the highest effective rate; nominees act as withholding agents.
- Filing furnishes the press release under Regulation FD (Item 7.01), so it is not deemed filed under Section 18 of the Exchange Act.
03—Questions
Frequently Asked Questions
How much is the distribution and how does it compare to last year?
The distribution is $0.32 per common unit for Q2 2024, or $1.28 annualized. This is an increase of 3.2% compared with the second quarter of 2023.
When must I own units to receive this distribution?
You must be a unitholder of record as of the close of business on August 9, 2024. The cash payment is scheduled for August 19, 2024.
When will Energy Transfer report Q2 2024 results?
The company plans to release second-quarter 2024 earnings on August 7, 2024 after the market closes, followed by a conference call at 3:30 p.m. Central Time (4:30 p.m. Eastern Time) that day, available via webcast on energytransfer.com.
Are there special tax considerations for non-U.S. investors?
Yes. The partnership states that 100% of distributions to foreign investors are effectively connected with a U.S. trade or business and are subject to federal withholding at the highest applicable effective rate. Nominees, not Energy Transfer, act as withholding agents, and brokers should treat 100% of distributions as in excess of cumulative net income for withholding purposes. Investors should consult a tax advisor.
Does this filing include financial results or guidance?
No. The 8-K only announces the distribution and the timing of the upcoming earnings release. It does not disclose Q2 2024 financial results, and the press release contains no explicit forward guidance beyond the standard forward-looking statement disclaimer.
04—Continue