|What is a Master Limited Partnership (MLP)?|
| ||A Master Limited Partnership (MLP) is a publicly traded partnership. The nature of the partnership provides for the “pass through” of income to its partners. This essentially avoids double corporate taxation on profits. Ownership interests in MLPs are referred to as “units.” Investors who own MLP units are considered limited partners of the partnership. |
For more information on Master Limited Partnerships, please visit: mlpassociation.org
|How do I purchase Energy Transfer units?|
| ||ET units are traded on the New York Stock Exchange (NYSE: ET), and can be purchased through your banker, broker or other financial institution or brokerage house. Energy Transfer does not have a direct purchase plan.|
|Do MLPs pay a dividend?|
MLPs are required to pay out all earnings not needed for current operations and maintenance of capital assets to their unitholders in the form of a cash distribution. Typically, MLPs – including ET – make distributions to their limited partners on a quarterly basis. For Distribution History information, please visit our webpage: Distribution History page.
- Energy Transfer L.P. (ET) - Distributions are typically paid approximately 50 days after the end of each quarter. Quarterly distributions are estimated to be on or about February 19, May 19, August 19, and November 19.
|When do I have to purchase units to receive the distribution?|
The distribution is paid to unitholders of record on the specified record date. To be a unitholder of record on the record date you must purchase units prior to the Ex-Dividend date. Following is the New York Stock Exchange’s definition of the Ex-Dividend.
Ex-Dividend: A synonym for "without dividend." The buyer of an ex-dividend stock is not entitled to the next dividend payment. Dividends are paid on a set date to all those shareholders recorded on the books of the company as of a previous date of record.
|What is the difference between a distribution and a dividend?|
ET is a publicly traded master limited partnership. Unitholders are limited partners in the Partnership and receive cash distributions. A partnership generally is not subject to federal or state income tax. The annual income, gains, losses, deductions, and credits of the Partnership flow through to the Unitholders, who are required to report their allocated share of these amounts on their individual tax returns as though the Unitholder had received these items directly. You will receive a K-1 tax package summarizing your allocated share of the Partnership’s reportable tax items for the tax year. We estimate that Schedule K-1 tax packages will be distributed to Unitholders of record in March for the proceeding calendar year.
If you should have questions regarding the Schedule K-1, contact our K-1 Tax Support Center at:
- ETP K-1 Tax Support Center: 800-792-7904 Monday-Friday 8am–5pm (CST)
- ETE K-1 Tax Support Center: 800-617-7736 Monday-Friday 8am–5pm (CST)
|What are the tax implications of the distribution?|
ET will not pay any federal income tax. This allows for a higher potential cash flow payout to unitholders. Instead, each unitholder will be required to report on his or her income tax return his or her share of our income, gains, losses, and deductions without regard to whether corresponding cash distributions are received. As a result, a unitholder’s share of taxable income, and possibly the income tax payable by the unithholder with respect to that income, may exceed the cash actually distributed to the unitholder. Since MLPs generally pay more cash distributions than the amount of taxable income allocated, the tax basis of the unitholder is decreased by the difference between total cash received and taxable income reported. Cash distributions will become taxable if the unitholders’s cost basis is reduced to zero. It is the responsibility of each unitholder to investigate the legal and tax consequences under the law of pertinent states and localities of his or her investment in Energy Transfer.
|How do I obtain a copy of Energy Transfer and/or Energy Transfer Equity annual report?|
To request an annual report, please visit the Information Request page on our website or you may also request a copy by phone at 214.981.0795.