Preferred Equity
ET PREFERRED UNITS
On April 1, 2021, Energy Transfer Operating, L.P. merged with a wholly-owned subsidiary of ET. Pursuant to the terms of the merger, at closing, each issued and outstanding preferred unit representing a limited partner interest in ETO was converted into the right to receive one newly-created unit representing a limited partner interest in ET with substantially equivalent preferences, rights, powers, duties and obligations as the ETO preferred unit for which it was exchanged. Following that merger, ETO was merged into ET, with ET as the surviving entity. For additional information related to this transaction, please click here.
Energy Transfer (or its subsidiary, Energy Transfer Operating, L.P.) has issued multiple series of preferred units. Our Series I preferred units are listed on the NYSE under the ticker symbol ETprI. As stated below, the Series C and D preferred units were redeemed on February 9, 2024, the Series E preferred units were redeemed on May 15, 2024, and the Series A preferred units were redeemed on June 21, 2024.
For information regarding the preferred units, please see below:
TREASURY REGULATION QUALIFIED NOTICES REGARDING EFFECTIVELY CONNECTED INCOME AND CUMULATIVE NET INCOME
The following serves as qualified notice to nominees as provided for under Treasury Regulation section 1.1446:
Pursuant to Treasury Regulation section 1.1446-4(b)(4) and (d), please note that 100 percent of Energy Transfer LP’s distributions (including distributions on Series A, B, C, D, E, F, G, H and I perpetual preferred units) to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Energy Transfer LP’s distributions to foreign investors are subject to federal tax withholding at the highest applicable effective tax rate. Nominees, and not Energy Transfer LP are treated as withholding agents responsible for withholding distributions received by them on behalf of foreign investors. Pursuant to Treasury Regulation section 1.1446(f)-4(c)(2)(iii), 100 percent of the distributions on the Series A, B, C, D, E, F, G, H and I perpetual preferred units are expected to be from amounts in excess of Energy Transfer LP’s cumulative net income.
Redemption of Energy Transfer LP Series A Preferred Units on June 21, 2024
On June 6, 2024, Energy Transfer issued a notice to redeem all of its outstanding Series A preferred units at a redemption price per unit of $1,009.87899, which is equal to $1,000 per unit plus unpaid distributions to, but excluding, June 21, 2024. Please see the Notice of Full Redemption found here.
Redemption of Energy Transfer LP Series C and Series D Preferred Units on February 9, 2024
On January 10, 2024, Energy Transfer issued a notice to redeem all of its outstanding (i) Series C preferred units at a redemption price per unit of $25.607454, which is equal to $25.00 per unit plus unpaid distributions to, but excluding, February 9, 2024 (the “Redemption Date”), and (ii) Series D preferred units at a redemption price per unit of $25.619877, which is equal to $25.00 per unit plus unpaid distributions to, but excluding, the Redemption Date. Pertaining to this redemption, please see the January 22, 2024 Energy Transfer press release shown here.
Redemption of Energy Transfer LP Series E Preferred Units on May 15, 2024
On March 20, 2024, Energy Transfer issued a notice to redeem all of its outstanding Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Units”) on May 15, 2024 at a redemption price per Unit of $25.00. Holders of Units as of May 1, 2024, the record date for quarterly distributions on the Units, will separately receive accrued distributions to, but excluding, May 15, 2024, in an amount of $0.4750 per Unit. Pertaining to this redemption, please see the March 20, 2024 Energy Transfer press release shown here.
Historical distribution information for the Series C, D and E Preferred Units can be found at the following links:
Series C Preferred Units Distribution History
Series D Preferred Units Distribution History
Series E Preferred Units Distribution History