On April 28, 2017, Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) closed on their previously announced merger. The combined company is now called Energy Transfer Partners.
For current information, and more details on the ETP and SXL merger, please click (here).
Many of our investors and potential investors have similar questions about Sunoco Logistics, Energy Transfer, our affiliates and other more specific financial information. We have created this section to provide easy-to-access answers to the most common of those questions.
If you do not find an answer to a question you have, or would like more information than we have provided, please contact us and we will provide all the details we can.
To make this section easier to navigate, just click on any of the individual questions articulated below:
- What is a Master Limited Partnership (MLP)?
- Who owns Energy Transfer Partners?
- What is a distribution payment?
- When will the distribution be paid?
- What are the tax implications of the distribution?
- What information will I receive for income tax reporting purposes?
- Does Energy Transfer Partners have a Distribution Reinvestment Plan?
- How can I buy units of Energy Transfer Partners?
- Who is Energy Transfer Partners' transfer agent and how does a registered unitholder contact the agent for account information?
- How can I communicate directly with Energy Transfer Partners?
1. What is a Master Limited Partnership (MLP)?
An Master Limited Partnership (MLP) is a publicly traded partnership. The nature of the partnership provides for the "pass through" of income to its partners. This essentially avoids double corporate taxation on profits. Ownership interests in MLPs are referred to as "units." Investors who own MLP units are considered limited partners of the partnership.
For more information on Master Limited Partnerships, please visit: naptp.org
2. Who owns Energy Transfer Partners?
On April 28, 2017, Energy Transfer Partners L.P. (ETP) and Sunoco Logistics Partners L.P. (SXL) closed on their previously announced merger. The combined company is now called Energy Transfer Partners.
Energy Transfer Equity (ETE) owns ETP through its ownership of the general partner of ETP. . ETE also owns approximately 27.5 million Limited Partner units of ETP. Individual unitholders own the remaining Limited Partner units outstanding.
3. What is a distribution payment?
A distribution is similar to a dividend that you would receive from a corporation. A distribution represents the cash payment made to unitholders on a quarterly basis. See Sunoco Logistics Partners distribution history for past distribution payments made. As a result of the recent merger between ETP and SXL, future distribution payments will be made by Energy Transfer. For more information on ETP’s distributions, please click here.
4. When will the distribution be paid?
Distributions are typically paid approximately 45 days after the end of each calendar quarter, and therefore are estimated to be paid in mid- May, August, November, and February of each year
5. What are the tax implications of the distribution?
ETP and ETE will not pay any federal income tax. This allows for a higher potential cash flow payout to unitholders. Instead, each unitholder will be required to report on his or her income tax return his or her share of our income, gains, losses, and deductions without regard to whether corresponding cash distributions are received. As a result, a unitholder’s share of taxable income, and possibly the income tax payable by the unitholder with respect to that income, may exceed the cash actually distributed to the unitholder. Since MLPs generally pay more cash distributions than the amount of taxable income allocated, the tax basis of the unitholder is decreased by the difference between total cash received and taxable income reported. Cash distributions will become taxable if the unitholder’s cost basis is reduced to zero. It is the responsibility of each unitholder to investigate the legal and tax consequences under the law of pertinent states and localities of his or her investment in Energy Transfer.
6. What information will I receive for income tax reporting purposes?
Sunoco Logistics and Energy Transfer Partners will provide its unitholders with a Schedule K-1 during the latter part of February for the prior tax year.
7. Does Energy Transfer Partners have a Distribution Reinvestment Plan?
Upon closing of the merger between Sunoco Logistics and Energy Transfer Partners, ETP’s DRIP program was terminated; therefore, ETP does not currently offer a DRIP.
8. How can I buy units of Energy Transfer Partners?
Due to the merger of ETP and SXL, SXL has changed its name to Energy Transfer Partners, and SXL units are now listed on the NYSE under the ticker symbol ETP. For information on how to purchase ETP units, click here.
9. Who is Energy Transfer Partners' transfer agent and how does a registered unitholder contact the agent for account information?
Due to the merger of ETP and SXL, information related to the transfer agent of the merged company can be found here.
10. How can I communicate directly with Energy Transfer Partners?
Energy Transfer Partners encourages questions and discussions with all of its unitholders and potential investors, particularly as it relates to the merger of ETP and SXL. Please contact us at your convenience.
If you have any other questions, please contact Investor Relations.