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Energy Transfer's Kelcy Warren buys $47 million in company units

Published 08/13/2024, 04:50 PM
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Energy Transfer LP (NYSE:ET) director Kelcy Warren has made a significant purchase of the company's common units, according to a recent filing with the Securities and Exchange Commission. Warren acquired 3 million units at a price of $15.68 per unit, totaling an investment of $47 million.

The transaction, dated August 12, 2024, increased Warren's direct and indirect holdings in the company. Following the purchase, Warren's direct holdings in Energy Transfer LP common units amount to 67,178,477. Additionally, through various partnerships and entities, Warren has indirect ownership of 100,577,803 units with Kelcy Warren Partners III, LLC, 10,224,429 units with Kelcy Warren Partners II, LP, 328,383 units with ET Company, Ltd., and 601,076 units with LE GP, LLC. It should be noted that Warren disclaims beneficial ownership of these reported units except to the extent of his pecuniary interest therein, as indicated in the footnotes of the filing.

Warren's acquisition is noteworthy, as insider transactions are often seen as a strong signal of the executive's confidence in the company's future prospects. Energy Transfer LP, a Dallas-based company with a focus on natural gas transmission, has been a significant player in the energy sector, and this move by a top insider could be interpreted as a reaffirmation of the company's stability and growth potential.

Investors and market watchers typically pay close attention to insider transactions like these for insights into company performance and strategic direction. With this latest purchase, Warren's total direct and indirect interest in Energy Transfer LP now stands at a substantial number of units, reflecting a deep commitment to the company's success.

Energy Transfer LP's shares are publicly traded on the New York Stock Exchange under the ticker symbol ET.

In other recent news, Energy Transfer LP has been making significant strides in its financial and operational endeavors. The company recently reported an impressive increase in its adjusted EBITDA for the second quarter of 2024, rising from $3.1 billion in the same quarter of the previous year to $3.76 billion. This growth was primarily driven by record volumes in crude oil and natural gas liquids pipelines, along with robust NGL exports.

In addition to its financial growth, Energy Transfer has also been active in expanding its operations. The company completed the acquisition of WTG Midstream Holdings LLC, a move expected to enhance its access to natural gas and natural gas liquids in the Permian Basin. Furthermore, Energy Transfer and Sunoco LP have formed a joint venture, merging their crude oil and produced water gathering operations in the Permian Basin.

Moreover, Energy Transfer initiated a secondary public offering of 38,755,996 of its common units, with Barclays acting as the underwriter. The proceeds from this offering will go entirely to the Selling Unitholders, namely WTG Midstream LLC and an affiliate of Stonepeak. Energy Transfer will not receive any proceeds from this sale as it is not selling any units in this transaction.

These are among the recent developments that reflect Energy Transfer's strategic moves to grow its core business and position itself for future opportunities in the energy sector.

InvestingPro Insights

Following the recent insider purchase by Energy Transfer LP (NYSE:ET) director Kelcy Warren, investors might seek additional context to understand the company's financial health and market performance. According to InvestingPro data, Energy Transfer LP boasts a market capitalization of $53.15 billion and a P/E ratio of 12.97, reflecting investor valuation of its earnings. Notably, the company has demonstrated consistent shareholder returns, maintaining dividend payments for 19 consecutive years, with a current dividend yield of 8.23%—a significant figure that underscores its commitment to returning value to shareholders.

Energy Transfer LP's revenue growth over the last twelve months as of Q2 2024 stands at 3.56%, indicating steady business expansion. Moreover, the company's gross profit margin during the same period is 18.05%, which, despite being considered weak by some standards, is part of the broader financial landscape that analysts predict will lead to profitability this year. This aligns with the company's status as a prominent player in the Oil, Gas & Consumable Fuels industry, as highlighted by one of the InvestingPro Tips.

As Energy Transfer LP trades near its 52-week high, with the price at 94.36% of this peak, it showcases the confidence investors have in its market position. For those seeking deeper insights, InvestingPro offers additional tips, with a total of 7 tips available on the platform, including analysis on stock price volatility and industry comparisons. These insights can be further explored at InvestingPro's dedicated page for Energy Transfer LP (https://www.investing.com/pro/ET), providing valuable information for investors considering the company's stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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