Energy Transfer Announces $2 Billion Notes Offering for Debt Management and Strategic Purposes

Energy Transfer LP has priced a $2 billion public offering of junior subordinated notes, with proceeds to repay borrowings under its revolving credit facility and for general partnership purposes. The most recent analyst rating on ET stock is a Buy with a $23.00 price target. The company's overall stock score reflects solid financial health and attractive dividend yield, but high leverage and adjusted guidance temper the outlook. Technical indicators suggest a neutral market sentiment.

Energy Transfer LP (NYSE: ET) has priced a $2 billion public offering of junior subordinated notes. The offering consists of $1.2 billion in Series 2025A junior subordinated notes due 2056 and $800 million in Series 2025B junior subordinated notes due 2056, each priced at 100.00% of their face value [1]. The notes will bear interest at annual rates of 6.500% for Series 2025A and 6.750% for Series 2025B.

The sale of the junior subordinated notes is expected to settle on August 25, 2025, subject to customary closing conditions [1]. Energy Transfer intends to use the net proceeds of approximately $1,980,000,000 from the offering to repay borrowings under its revolving credit facility and for general partnership purposes [1]. The company's most recent analyst rating on ET stock is a Buy with a $23.00 price target [4].

The company's overall stock score reflects solid financial health, with an attractive dividend yield of 7.17% driven by fee-based midstream infrastructure and a $1.96B Q2 2025 distributable cash flow [4]. However, high leverage and adjusted guidance temper the outlook. Technical indicators suggest a neutral market sentiment [4].

The offering is being managed by J.P. Morgan Securities LLC, PNC Capital Markets LLC, TD Securities LLC, Truist Securities, Inc., and Wells Fargo Securities, LLC [1]. The offering is being made pursuant to an effective shelf registration statement and prospectus filed with the Securities and Exchange Commission (SEC) [1]. Latham & Watkins LLP advised Energy Transfer LP in the transaction [2].

References:
[1] https://ir.energytransfer.com/news-releases/news-release-details/energy-transfer-lp-announces-pricing-20-billion-junior
[2] https://www.lw.com/en/news/2025/08/latham-watkins-advises-energy-transfer-lp-in-offering-of-us2-billion-junior-subordinated-notes
[3] https://www.okenergytoday.com/2025/08/energy-transfer-announces-offering-of-2-billion-in-notes/
[4] https://www.ainvest.com/news/energy-transfer-high-yield-energy-play-infrastructure-driven-dividend-resilience-2508/