Energy Transfer Partners Announces Quarterly Cash Distribution and 2016 Capital Expenditure Update
Fourth quarter distribution of $1.055 per unit, consistent with
No expectation for public debt or equity capital markets issuances
2016 growth capital expenditures to be reduced by at least $750
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.
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
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.
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.
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
The information contained in this press release is available on our web
site at www.energytransfer.com.
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