ET - Energy Transfer Debt Leverage Downgrade And Distributions
The issue of Energy Transfer's (ET) significant debt, leverage and outsized distribution is an old topic. Recently, an S&P Global investment grade credit affirmation, but including a negative outlook has entered the fray.
Therefore, it's time to roll up our sleeves and try to unpack the situation to see how it impacts us LP investors.
In this article we will detail:
Parent/subsidiary debt and other liabilities
Debt-to-EBITDA leverage ratio calculations/methodology
S&P “negative outlook” implications
Potential remedies and impact upon the cash distribution
Financial data sources include Energy Transfer SEC filings and website investor