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Research Update: Energy Transfer LP 'BBB-' Ratings Affirmed On Its Agreement To Acquire SemGroup Corp.; Outlook Stable

Published Sep 16, 2019

7 pages (2755 words) — Published Sep 16, 2019

Price US$ 225.00 | Buy this Report Now

About This Report

Abstract:

Dallas-based midstream energy partnership Energy Transfer LP (ET) has executed a definitive agreement to acquire SemGroup Corp. (SEMG) for $17 per share. The merger consideration of about $5 billion consists of 40% cash ($6.80 per SEMG share) and 60% ET common units. We expect that the SEMG assets will go to Energy Transfer Operating LP (ETO) at transaction close, in the first quarter of 2020. We are affirming our 'BBB-' issuer credit ratings on ET. We are also affirming the 'BBB-' issuer credit ratings and senior unsecured issue-level ratings on operating subsidiaries ETO, ETP Legacy LP, Sunoco Logistics Partners Operations LP, Panhandle Eastern Pipe Line Co. LP, and Regency Energy Partners LP. The stable outlook on ET reflects our belief

Brief Excerpt:

...- Dallas-based midstream energy partnership Energy Transfer LP (ET) has executed a definitive agreement to acquire SemGroup Corp. (SEMG) for $17 per share. The merger consideration of about $5 billion consists of 40% cash ($6.80 per SEMG share) and 60% ET common units. - We expect that the SEMG assets will go to Energy Transfer Operating LP (ETO) at transaction close, in the first quarter of 2020. - We are affirming our '###-' issuer credit ratings on ET. - We are also affirming the '###-' issuer credit ratings and senior unsecured issue-level ratings on operating subsidiaries ETO, ETP Legacy LP, Sunoco Logistics Partners Operations LP, Panhandle Eastern Pipe Line Co. LP, and Regency Energy Partners LP. - The stable outlook on ET reflects our belief that the combined company's credit measures will be acceptable for the rating, and that the robust distribution coverage ratios of almost 2x will provide the partnership with financial flexibility and funding certainty and help strengthen the...

Report Type:

Research Update

Ticker

ETE

Issuer

Energy Transfer LP

GICS

Oil & Gas Storage & Transportation (10102040)

Sector

Global Issuers

Country

United States

Region

United States

Format:

PDF

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Cite this Report


MLA:	S&P Global Ratings’ Credit Research. "Research Update: Energy Transfer LP 'BBB-' Ratings Affirmed On Its Agreement To Acquire SemGroup Corp.; Outlook Stable" Sep 16, 2019. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Energy-Transfer-LP-BBB-Ratings-Affirmed-On-Its-Agreement-To-Acquire-SemGroup-Corp-Outlook-Stable-2300356>

APA:	S&P Global Ratings’ Credit Research. (). Research Update: Energy Transfer LP 'BBB-' Ratings Affirmed On Its Agreement To Acquire SemGroup Corp.; Outlook Stable Sep 16, 2019. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Energy-Transfer-LP-BBB-Ratings-Affirmed-On-Its-Agreement-To-Acquire-SemGroup-Corp-Outlook-Stable-2300356>

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