Energy Transfer LP

Energy Transfer LP is a Delaware limited partnership with common units publicly traded on the NYSE under the ticker symbol “ET.”

The primary activities in which we are engaged, which are located in the United States, are as follows: • natural gas operations, including the following: • natural gas midstream and intrastate transportation and storage; • interstate natural gas transportation and storage; and • crude oil, NGL and refined products transportation, terminalling and acquisition and marketing activities as well as NGL storage and fractionation services.

In addition, we own investments in other businesses, including Sunoco LP and USAC, both of which are master limited partnerships. Energy Transfer derives cash flows from distributions related to its investment in its subsidiaries, including Sunoco LP and USAC.

The amount of cash that our subsidiaries distribute to us is based on earnings from their respective business activities and the amount of available cash. Energy Transfer’s primary cash requirements are for distributions to its partners, general and administrative expenses and debt service requirements. Energy Transfer distributes its available cash remaining after satisfaction of the aforementioned cash requirements to its Unitholders on a quarterly basis

ET is a partnership, not a C-corporation like most stocks are. When you buy units of ET you are buying a portion of the partnership. Partnerships do not pay tax on their income, instead they send a K-1 to the partners with their allocable share of the income based on ownership percentage. What this means for you is you have to wait until April at the earliest and maybe later before you get your K-1 in the mail and then you have to report that income on your return. For most people the K-1 is too complex and they need a tax preparer at that point.

Seems like an interesting buy and hold, relatively defensive energy stock. With increasing energy requirements from AI and a favorable Trump admin, might be a good time to buy in as a way to store cash. Some complexity from their dividends being a partnership; I don't fully understand the tax implications of this.

Shareholders seem to be quite happy with its performance and dividend to date.