8-KRegulation FDOther EventsExhibits & Filings

Energy Transfer LP 8-K Report, Regulation FD Disclosure (Aug 12, 2024)

Filed August 12, 2024For Securities:ETET-PI

Summary

Energy Transfer LP (ET) announced on August 9, 2024, the pricing of a secondary public offering of approximately 38.76 million common units by certain existing unitholders, including WTG Midstream LLC and an affiliate of Stonepeak Infrastructure Partners LP. The offering price was set at $15.78 per unit. Importantly, Energy Transfer LP will not receive any proceeds from this sale; the transaction is purely between selling unitholders and the underwriter. The offering is expected to close around August 12, 2024. In a notable related transaction, certain officers and directors of ET's general partner, LE GP, LLC, have agreed to purchase approximately 3.04 million common units at the same $15.78 per unit price directly from the underwriter. This indicates continued confidence and investment from key internal stakeholders. The filing also includes a customary 30-day lock-up period for certain parties, preventing the sale of additional units without the underwriter's consent.

Key Highlights

  • 1Pricing of secondary public offering of approximately 38.76 million common units by existing unitholders at $15.78 per unit.
  • 2Energy Transfer LP (ET) will not receive any proceeds from this secondary offering.
  • 3The selling unitholders include WTG Midstream LLC and an affiliate of Stonepeak Infrastructure Partners LP.
  • 4Certain ET officers and directors will purchase approximately 3.04 million common units at the offering price.
  • 5The offering is expected to close on or around August 12, 2024.
  • 6A 30-day lock-up period is in effect for certain parties, restricting further sales of common units without underwriter consent.

Frequently Asked Questions

The common units are being sold by certain existing unitholders, specifically identified as WTG Midstream LLC and an affiliate of Stonepeak Infrastructure Partners LP. This is a secondary offering, meaning the company itself is not selling new units.

No, Energy Transfer LP will not receive any proceeds from the sale of these common units. All proceeds go directly to the selling unitholders.

Certain officers and directors of ET's general partner are purchasing approximately 3.04 million common units at the same price as the public offering. This action typically signals confidence in the company's future prospects and aligns their interests with other unitholders.

The 30-day lock-up period, which applies to the Partnership, the Selling Unitholders, and certain directors and officers of the General Partner, is a standard provision in underwriting agreements. It prevents the sale or disposition of additional common units for a period after the offering closes, aiming to stabilize the unit price and prevent immediate market overhang.