Energy Transfer LP priced a $3 billion senior notes offering on January 12, 2026, issuing three tranches of $1 billion each. The 4.550% notes due 2031 were priced at 99.830% of face value, the 5.350% notes due 2036 at 99.933%, and the 6.300% notes due 2056 at 99.842%.
The sale is expected to settle on January 27, 2026, and the offering is being book‑run by BofA Securities, Deutsche Bank Securities, Mizuho, MUFG, and SMBC Nikko. Net proceeds are projected to be approximately $2.97 billion after offering expenses.
The proceeds will be used to refinance existing indebtedness, including commercial paper and borrowings under the company’s revolving credit facility, and for general partnership purposes. The refinancing aligns with Energy Transfer’s 2026 capital‑allocation strategy, which targets $5.0 billion to $5.5 billion in growth capital expenditures, primarily for natural‑gas pipeline and processing projects.
By extending the maturity profile of its debt and replacing higher‑cost short‑term borrowings, the company aims to lower interest expense and improve leverage ratios. The move also frees cash that can be directed toward pipeline expansion and other growth initiatives, supporting the company’s outlook for consolidated adjusted EBITDA of $17.3 billion to $17.7 billion in 2026.
Energy Transfer operates a vast midstream network of roughly 140,000 miles of pipelines across 44 states, handling natural gas, NGLs, crude oil, and refined products. Recent strategic projects include the Nederland Flexport NGL expansion, Mustang Draw I and II processing plants, and natural‑gas pipelines serving data‑center hubs. The company has also suspended its Lake Charles LNG project, reallocating capital to other infrastructure opportunities.
The $3 billion senior notes offering represents a significant capital‑structure decision, reinforcing Energy Transfer’s ability to access capital markets and fund its growth agenda while managing debt maturity and cost profiles.
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