Energy Transfer says BIS rescinds license requirement for ethane exports to China

Published 02/07/2025, 23:24
Energy Transfer says BIS rescinds license requirement for ethane exports to China

Energy Transfer LP (NYSE:ET), a prominent player in the Oil, Gas & Consumable Fuels industry with a market capitalization of $61.36 billion, reported Wednesday that the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce has rescinded a license requirement for certain ethane exports involving China. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates, with strong financial metrics including a healthy 7.3% dividend yield. The company stated in a press release that, effective immediately, it is no longer required to obtain a BIS license for the export, reexport, or in-country transfer of ethane classified under U.S. Census Bureau Schedule B code 2901.10.1010 when a party to the transaction is located in China or is a Chinese military end user. With annual revenues exceeding $82 billion and a strong return on equity of 15%, Energy Transfer maintains a robust position in the global energy market. For detailed insights and 8 additional key ProTips about Energy Transfer’s performance, visit InvestingPro.

This update follows a previous BIS notification, dated June 3, 2025, which had required Energy Transfer to secure a license for such transactions. The initial requirement was set to remain in effect until BIS issued a revision or rescinded the directive, or until new regulations were implemented.

According to the filing, Energy Transfer owns and operates marine export terminals that handle natural gas liquids, including the ethane products covered by the BIS communications.

The information is based on a statement included in a press release and disclosed in the company’s SEC filing.

In other recent news, Energy Transfer reported its first-quarter 2025 financial results, showing a net income increase to $1.32 billion, up from $1.24 billion the previous year. Despite this increase, the company’s revenue of $21.02 billion fell short of the expected $22.42 billion. Energy Transfer’s earnings per share (EPS) matched analyst expectations at $0.36, though the company internally reported an EPS of $0.37, exceeding forecasts. Additionally, the company announced a quarterly cash distribution increase of over 3% compared to the previous year. Energy Transfer’s operational activities included the commissioning of a natural gas-fired facility in Texas and the start of construction on the Hugh Brinson Pipeline. The company also entered into a joint development agreement for the Lake Charles LNG project. In related developments, Enbridge (NYSE:ENB) and Energy Transfer plan to upgrade pipeline capacity in Illinois to boost oil flows to the U.S. Gulf Coast, responding to industry demand.

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