Energy Transfer LP to Acquire SemGroup's Stake for $1.3B
Ticker: ET-PI · Form: 8-K · Filed: Jun 17, 2024 · CIK: 1276187
Sentiment: neutral
Topics: acquisition, midstream, consolidation
TL;DR
ET buying out SemGroup's stake in ET Terminals for $1.3B, closing Q3.
AI Summary
On June 17, 2024, Energy Transfer LP announced a definitive agreement to acquire the remaining 50% interest in Energy Transfer Terminals LLC from SemGroup Corporation for approximately $1.3 billion. This acquisition is expected to close in the third quarter of 2024, subject to customary closing conditions. The transaction will result in Energy Transfer LP owning 100% of Energy Transfer Terminals LLC.
Why It Matters
This acquisition consolidates Energy Transfer's ownership of a key asset, potentially streamlining operations and enhancing its integrated midstream business. It also represents a significant capital deployment for the company.
Risk Assessment
Risk Level: medium — The acquisition is subject to customary closing conditions and regulatory approvals, which could delay or prevent its completion.
Key Numbers
- $1.3B — Acquisition Price (Total cost for the remaining 50% interest in Energy Transfer Terminals LLC)
- 50% — Ownership Stake (Percentage of Energy Transfer Terminals LLC being acquired)
- Q3 2024 — Expected Closing (Anticipated timeframe for the transaction to be finalized)
Key Players & Entities
- Energy Transfer LP (company) — Acquiring entity
- SemGroup Corporation (company) — Selling entity
- Energy Transfer Terminals LLC (company) — Acquired asset
- $1.3 billion (dollar_amount) — Acquisition price
- June 17, 2024 (date) — Announcement date
- third quarter of 2024 (date) — Expected closing period
FAQ
What is the specific name of the entity being acquired?
Energy Transfer LP is acquiring the remaining 50% interest in Energy Transfer Terminals LLC.
Who is the seller in this transaction?
SemGroup Corporation is selling its 50% interest in Energy Transfer Terminals LLC.
What is the total value of the transaction?
The acquisition is valued at approximately $1.3 billion.
When is the transaction expected to close?
The acquisition is expected to close in the third quarter of 2024.
What will be Energy Transfer LP's ownership percentage after the acquisition?
After the acquisition, Energy Transfer LP will own 100% of Energy Transfer Terminals LLC.
Filing Stats: 687 words · 3 min read · ~2 pages · Grade level 11.7 · Accepted 2024-06-17 16:10:29
Filing Documents
- et-20240617.htm (8-K) — 26KB
- 0001276187-24-000056.txt ( ) — 202KB
- et-20240617.xsd (EX-101.SCH) — 4KB
- et-20240617_def.xml (EX-101.DEF) — 17KB
- et-20240617_lab.xml (EX-101.LAB) — 31KB
- et-20240617_pre.xml (EX-101.PRE) — 18KB
- et-20240617_htm.xml (XML) — 4KB
01. Regulation FD Disclosure
Item 7.01. Regulation FD Disclosure. In accordance with General Instruction B.2. of Form 8-K, the following information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. Members of management of Energy Transfer LP (NYSE: ET) (the "Partnership") will hold meetings and informational sessions with investors and analysts at the 2024 J.P. Morgan Energy, Power & Renewables Conference being held June 17-18, 2024 in New York, New York. In the meetings, which are scheduled to begin at 6:30 p.m. Eastern time (5:30 p.m. Central time) on Monday, June 17th, management anticipates providing an overview of the Partnership's business, including an update on its growth projects and announced transactions. Prior to the meetings, interested parties will be able to view the prepared materials by visiting our website at: http://www.energytransfer.com under "Investor Relations – Presentations & Webcasts". The Partnership does not undertake to update the information as posted on its website; however, it may post additional information included in future press releases and Current Reports on Form 8-K, as well as posting its periodic Exchange Act reports. This report 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, Quarterly Reports on Form 10-Q, and other documents filed from time to time with the Securiti
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ENERGY TRANSFER LP By: LE GP, LLC, its general partner Date: June 17, 2024 /s/ Dylan A. Bramhall Dylan A. Bramhall Executive Vice President & Group Chief Financial Officer