Energy Transfer Partners LP (NYSE:ETP) reported that its new distribution reinvestment program is now open for registration for owners of its common units. This program became effective with ETP’s submission of its Form S-3 registration statement with the U.S. SEC on July 11, 2017.
Energy Transfer reported that both beneficial holders of ETP’s common units and unitholders of record may participate. Beneficial owners may contribute by having their broker partake on their behalf. If required, additional common units may be bought by reinvesting a portion or all of the cash distributions compensated on the common units.
Common units bought through the program will be at a discount of around 0% to 5%, currently fixed at 2.50% and a shareholder will not compensate any brokerage trading fees, service fees or other charges. If shareholders participate in the program through their brokers, they need to check with their brokers as they may ask a service fee for partaking on their behalf.
Participation in the program is voluntary and if a holder of common units elects to partake in the Plan, the holder may terminate her or his participation in the program at any time. An owner should go through carefully the prospectus defining the program before determining to participate in the plan.
Units of Energy Transfer dropped around 7% in June, after numerous concerns plagued the firm last month. The company began the month with promising news, reporting its Bakken Pipeline had finally started commercial service and was shipping oil to the Gulf Coast from the Bakken Shale as well as points in between. This channel would save funds for refiners as there would be then no requirement to utilize more expensive trucks or rail to get low-priced Bakken oil to their refineries.
However, the problems began when a Reuters report disclosed that regulators identified indications of diesel in a drilling fluid taster collected from a spill that was near Rover gas pipeline project in Ohio in April. The problem is that this spill is resulting in delays for the pipeline, which Energy Transfer had planned to complete later this year.