Energy Transfer LP issues $3 billion in senior notes

Energy Transfer LP (NYSE:ET), a Dallas-based natural gas transmission company with a market capitalization of $63.5 billion, has successfully completed an underwritten public offering of $3 billion in senior notes, the company disclosed today in a filing with the U.S. Securities and Exchange Commission (SEC). According to InvestingPro data, the company maintains a strong financial position with $14.4 billion in EBITDA for the last twelve months. The offering, completed on Monday, includes three tranches of senior notes with varying maturities and interest rates.

The first tranche consists of $650 million aggregate principal amount of 5.200% Senior Notes due 2030. The second tranche includes $1.25 billion aggregate principal amount of 5.700% Senior Notes due 2035. The final tranche comprises $1.1 billion aggregate principal amount of 6.200% Senior Notes due 2055.

These notes were issued under an existing indenture dated December 14, 2022, with U.S. Bank Trust Company, National Association, serving as trustee. The offering was registered under the Securities Act of 1933, following a Registration Statement on Form S-3ASR, which became effective on June 6, 2024. The terms of the offering were outlined in a Prospectus Supplement filed on February 20, 2025.

The legal opinion related to the issuance of the notes is included in the SEC filing as Exhibit 5.1. The terms and conditions of the notes, as well as the Seventh Supplemental Indenture dated March 4, 2025, are detailed in the Prospectus Supplement and are incorporated by reference into the 8-K filing.

This offering represents a significant financial move for Energy Transfer LP, which operates under the name 01 Energy & Transportation. The newly raised capital may be used for general corporate purposes, which could include debt repayment, capital expenditures, or other business investments.

Investors and market watchers can find further details about the senior notes and the terms of the offering in the exhibits attached to the 8-K filing, which provide additional legal and financial context for the transaction. The information presented in this article is based on the press release statement provided by Energy Transfer LP.

In other recent news, Energy Transfer reported fourth-quarter earnings that fell short of analyst expectations, with adjusted earnings per share at $0.29 compared to the anticipated $0.37. Revenue also missed the mark, coming in at $19.54 billion against the forecasted $21.68 billion. Despite these results, Energy Transfer achieved record financial and operating performance for the full year 2024, with a net income of $874 million and adjusted EBITDA of $1.56 billion. Looking forward, the company projects 2025 adjusted EBITDA to range between $16.1 billion and $16.5 billion, with growth capital expenditures of approximately $5 billion.

In related developments, Citi has maintained a Buy rating on Energy Transfer and raised its price target from $20.00 to $22.00, citing a robust growth outlook and substantial capital investments. Stifel also increased its price target for Energy Transfer to $23.00, highlighting the company’s strong project pipeline and its recent entry into supplying natural gas to data centers. Energy Transfer announced a significant natural gas supply contract with Cloudburst, marking its first venture into the data center supply sector.

The company’s diversification into new markets and strategic expansion plans have been positively received by analysts. Energy Transfer’s management has projected mid-teen returns on new projects, with cash flows expected to begin in 2026. These developments reflect the company’s strategic direction and potential for future growth, as noted by analysts at both Citi and Stifel.

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