Energy Transfer LP (ET)

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Warren defends Energy Transfer's MLP structure

Feb. 5, 2020 6:32 PM ET|About: Energy Transfer LP (ET)|By: Carl Surran, SA News Editor

Energy Transfer (NYSE:ET) CEO Kelcy Warren says he could eventually consider shaking up the partnership's corporate structure even as he touts the benefits of the out-of-favor MLP model.

"We may do an up-C, and we probably will do that," Warren told the Argus Americas Crude Summit in Houston today. "We probably will have an alternative currency for our unitholders to look at, but MLPs are just too good of an instrument. They're just too efficient not to attract people back at some point."

"There are not many of us left," Warren conceded, but "do I think MLPs are dead? Absolutely not."

Warren also defended his penchant for big acquisitions, including the deal to buy SemGroup that pushed the company's units lower, saying "Sometimes you need to be defensive. To run an MLP correctly, you must have a mix of M&A and organic growth."