Energy Transfer Partners Announces Quarterly Cash Distribution and 2016 Capital Expenditure Update
January 27 2016 - 4:15PM
Business Wire
- Fourth quarter distribution of
$1.055 per unit, consistent with prior quarter
- No expectation for public debt or
equity capital markets issuances in 2016
- 2016 growth capital expenditures to
be reduced by at least $750 million
- Earnings to be released February
24
Energy Transfer Partners, L.P. (NYSE: ETP) (“ETP” or
the “Partnership”) today announced its quarterly distribution
for the fourth quarter ended December 31, 2015, and updates to its
2016 capital expenditures and funding requirements.
Quarterly Distribution
ETP will pay a quarterly distribution of $1.055 per ETP common
unit ($4.22 per unit annualized) for the quarter ended December 31,
2015. The quarterly distribution of $1.055 per unit is the same as
the distribution for the third quarter of 2015. The cash
distribution will be paid on February 16, 2016, to unitholders of
record as of the close of business on February 8, 2016.
2016 Capital Expenditure Update
ETP has identified approximately $750 million of 2016 growth
capital expenditures that can be reduced in 2016. As of today,
ETP’s current growth capital funding estimates for 2016 are $4.2
billion, compared to $4.95 billion that ETP projected at its
November 17, 2015, Analyst Day meetings.
In addition, ETP is evaluating project financing of the Bakken
Pipeline. This measure would materially reduce the direct spending
required for this project and would substantially further reduce
ETP's and Sunoco Logistics Partners’ (NYSE: SXL) 2016 growth
capital funding requirements.
Financing Update
With the expected closing of the previously announced dropdown
of the remaining interest in Sunoco, LLC and the legacy Sunoco
retail business to Sunoco LP in late February, the outstanding
balance of ETP’s $3.75 billion revolver will be close to zero. As a
result, ETP does not expect the need to access the fixed income
market in 2016.
The $750 million reduction in 2016 growth capital funding, along
with other related asset sales, is expected to eliminate the need
for ETP common equity issuances in 2016.
Together with Energy Transfer Equity, L.P.’s (NYSE: ETE) recent
agreement to extend the $95 million annual management fee paid to
ETP through 2016, these actions are fully consistent with
maintaining ETP’s investment grade ratings. ETP also continues to
foresee significant EBITDA growth in 2017 from the completion of
its project backlog.
Earnings Release and Earnings Call Dates
ETP expects to release earnings for the fourth quarter of 2015
on Wednesday, February 24, 2016, after the market closes. ETP and
ETE, which owns the general partner of ETP, will conduct a joint
conference call on Thursday, February 25, 2016, at 8:00 a.m.
Central Time to discuss their quarterly results. The conference
call will be broadcast live via an internet web cast, which can be
accessed through www.energytransfer.com. The call will also be
available for replay on Energy Transfer’s web site for a limited
time.
Energy Transfer Equity, L.P. (NYSE: ETE) is a master
limited partnership which owns the general partner and 100% of the
incentive distribution rights (IDRs) of Energy Transfer
Partners, L.P. (NYSE: ETP) and Sunoco LP (NYSE: SUN) and
approximately 2.6 million ETP Common Units, approximately 81.0
million ETP Class H Units, which track 90% of the underlying
economics of the general partner interest and the IDRs
of Sunoco Logistics Partners L.P. (NYSE: SXL), and 100
ETP Class I Units. On a consolidated basis, ETE’s family of
companies owns and operates approximately 71,000 miles of natural
gas, natural gas liquids, refined products, and crude oil
pipelines. For more information, visit the Energy Transfer
Equity, L.P. web site at www.energytransfer.com.
Energy Transfer Partners, L.P. (NYSE: ETP) is a
master limited partnership owning and operating one of the largest
and most diversified portfolios of energy assets in the United
States. ETP’s subsidiaries include Panhandle Eastern Pipe Line
Company, LP (the successor of Southern Union Company)
and Lone Star NGL LLC, which owns and operates natural gas
liquids storage, fractionation and transportation assets. In total,
ETP currently owns and operates more than 62,500 miles of natural
gas and natural gas liquids pipelines. ETP also owns the general
partner, 100% of the incentive distribution rights, and
approximately 67.1 million common units in Sunoco Logistics
Partners L.P. (NYSE: SXL), which operates a geographically
diverse portfolio of crude oil and refined products pipelines,
terminalling and crude oil acquisition and marketing assets.
Additionally, ETP owns fuel distribution and retail marketing
assets and approximately 50.8% of the limited partner interests
in Sunoco LP (formerly Susser Petroleum Partners LP)
(NYSE: SUN), a wholesale fuel distributor and convenience store
operator. ETP’s general partner is owned by Energy Transfer
Equity, L.P. (NYSE: ETE). For more information, visit
the Energy Transfer Partners, L.P. web site
at www.energytransfer.com.
Forward-Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management’s control. An extensive list of factors that can affect
future results are discussed in the Partnership’s Annual Report on
Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. The Partnership undertakes no
obligation to update or revise any forward-looking statement to
reflect new information or events.
This release serves as qualified notice to nominees as provided
for under Treasury Regulation section 1.1446-4(b)(4) and (d).
Please note that 100 percent of Energy Transfer Partners, L.P.’s
distributions to foreign investors are attributable to income that
is effectively connected with a United States trade or business.
Accordingly, all of Energy Transfer Partners, L.P.’s distributions
to foreign investors are subject to federal tax withholding at the
highest applicable effective tax rate. Nominees are treated as
withholding agents responsible for withholding distributions
received by them on behalf of foreign investors.
The information contained in this press release is available on
our web site at www.energytransfer.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160127006366/en/
Investor Relations:Energy TransferBrent Ratliff,
214-981-0700orLyndsay Hannah, 214-840-5477orMedia
Relations:Granado Communications GroupVicki Granado,
214-599-8785214-498-9272 (cell)
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