Energy Transfer Partners (ETP) Declares $1.055 Quarterly Dividend; Sees ~$750M of CapEx Reduction for FY16

Energy Transfer Partners (NYSE: ETP) declared a quarterly dividend of $1.055 per share, or $4.22 annualized.

The dividend will be payable on February 16, 2016, to stockholders of record on February 8, 2016, with an ex-dividend date of February 4, 2016.

The annual yield on the dividend is 14.9 percent.

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 meetings.

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.

Financing Update

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.

For a dividend history and other dividend-related data on Energy Transfer Partners (ETP) click here.

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