Energy Transfer LP has recently released its 10-K report, providing an in-depth look into its business operations. The company, headquartered in Dallas, Texas, engages in a wide range of energy-related services. It owns and operates extensive natural gas transportation pipelines and storage facilities in Texas and Oklahoma, totaling approximately 20,090 miles of interstate natural gas pipeline. Additionally, the company is involved in natural gas gathering, processing, and treating facilities in multiple states, as well as NGL pipeline, fractionation, and storage services. It also provides crude oil transportation, terminalling, acquisition, and marketing activities, along with natural gas compression services and managing coal and natural resources properties.
In terms of recent developments, Energy Transfer LP completed the acquisition of 100% of the membership interest in WTG Midstream for $2.28 billion in cash and approximately 50.8 million newly issued Energy Transfer common units. This acquisition included approximately 6,000 miles of gas gathering pipelines and eight gas processing plants with a total capacity of approximately 1.3 Bcf/d. Moreover, Sunoco LP, in which Energy Transfer LP holds investments, completed the acquisition of NuStar, adding approximately 9,500 miles of pipeline and 63 terminal and storage facilities. Sunoco LP also acquired liquid fuels terminals in Europe and a terminal in Portland, Maine, while divesting 204 convenience stores in West Texas, New Mexico, and Oklahoma to 7-Eleven, Inc.
The company's primary objective is to increase its distributable cash flow to its Unitholders over time by pursuing a business strategy focused on growing its subsidiaries' natural gas and liquids businesses. Energy Transfer LP's reportable segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USAC, and all other.
The report also discusses the impact of the 2017 Tax Cuts and Jobs Act on the company's regulated entity rates and the FERC's Revised Policy Statement on Treatment of Income Taxes. The FERC's establishment of just and reasonable rates is based on various components, including ROE and tax-related components, which may affect the company's determination of just and reasonable cost-of-service rates. Energy Transfer LP's revenues from natural gas transportation services may decrease in the future as a result of changes to FERC policies and the reduced federal income tax rate established in the Tax Act.
The 10-K report provides a comprehensive overview of Energy Transfer LP's financial condition, recent developments, and regulatory updates, offering valuable insights into the company's operations and strategic initiatives. The market has reacted to these announcements by moving the company's shares 0.8% to a price of $19.98. If you want to know more, read the company's complete 10-K report here.
