Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
Current ETP Stock Info

ETP’s first deal since 2013

Energy Transfer Partners (ticker: ETP) announced the pricing of $3.0 billion in senior notes this week. The company announced the pricing of $650 million aggregate principal amount of its 2.50% senior notes due 2018, $350 million aggregate principal amount of its 4.150% senior notes due 2020, $1.0 billion aggregate principal amount of its 4.750% senior notes due 2026, and $1.0 billion aggregate principal amount of its 6.125% senior notes due 2045, at a price to the public of 99.946%, 103.113% (plus accrued interest from April 1, 2015), 99.275% and 99.619%, respectively, of their face value, according to a company press release.

The sale of the senior notes is expected to settle on June 23, 2015. ETOP intends to use the approximately $2.98 billion in proceeds from the offering to repay borrowings outstanding under the company’s revolving credit facility, to fund growth capital expenditures and for general partnership purposes.

The last time Energy Transfer Partners made an offering was in March 2013 when the company offered 12 million units in order to pay off debt on its revolving credit facility and for general partnership purposes.

In EnerCom’s MLP Weekly, ETP has an above average yield at 7.4% compared to a group median of 6.7%. The company has a slightly below average dividend coverage ratio with of 0.6x, compared to a group median of 0.7x.

Energy Transfer Partners has approximately 33,000 miles of natural gas pipelines, 154 Bcf of storage capacity, and 29 natural gas storage facilities. The company also has 2,300 miles of NGL transportation pipeline, 5,400 miles of crude oil and refined product pipelines and approximately 5,000 retail gas locations through its subsidiary Sunoco Logistics.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.