Debt Obligations |
6 Months Ended |
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Jun. 30, 2025 | |
| Debt Obligations [Abstract] | |
| Debt Obligations | DEBT OBLIGATIONS Recent Transactions Energy Transfer Senior Notes Issuance and Redemptions In March 2025, the Partnership issued $650 million aggregate principal amount of 5.20% senior notes due April 2030, $1.25 billion aggregate principal amount of 5.70% senior notes due April 2035 and $1.10 billion aggregate principal amount of 6.20% senior notes due April 2055. The Partnership used the net proceeds to refinance existing indebtedness, including to repay commercial paper and borrowings under its Five-Year Credit Facility (described below), and for general partnership purposes. In March 2025, the Partnership redeemed its $1.00 billion aggregate principal amount of 4.05% senior notes due March 2025 using cash on hand and commercial paper borrowings. In May 2025, the Partnership redeemed its $1.00 billion aggregate principal amount of 2.90% senior notes due May 2025 using cash on hand and commercial paper borrowings. Sunoco LP Senior Notes Issuance and Redemption In March 2025, Sunoco LP issued $1.00 billion aggregate principal amount of 6.25% senior notes due 2033 in a private offering. These notes will mature on July 1, 2033 and interest is payable semi-annually on January 1 and July 1 of each year. Sunoco LP used the net proceeds from the private offering to repay its $600 million aggregate principal amount of 5.75% senior notes due 2025 and to repay a portion of the outstanding borrowings under its revolving credit facility. Sunoco LP GoZone Bonds Repurchase NuStar Logistics L.P., a wholly owned subsidiary of Sunoco LP, has obligations which include revenue bonds issued by the Parish of St. James, Louisiana pursuant to the Gulf Opportunity Zone Act of 2005 (the “GoZone Bonds”). Previously outstanding $75 million principal amount of Series 2011 GoZone Bonds were repurchased on the mandatory purchase date of June 1, 2025 but were not remarketed. Credit Facilities and Commercial Paper Five-Year Credit Facility The Partnership’s revolving credit facility (the “Five-Year Credit Facility”) allows for unsecured borrowings up to $5.00 billion until April 11, 2027, and up to $4.84 billion until April 11, 2029. The Five-Year Credit Facility contains an accordion feature, under which the total aggregate commitment may be increased up to $7.00 billion under certain conditions. As of June 30, 2025, the Five-Year Credit Facility had $2.47 billion of outstanding borrowings, $1.65 billion of which consisted of commercial paper. The amount available for future borrowings was $2.51 billion after accounting for outstanding letters of credit in the amount of $22 million. The weighted average interest rate on the total amount outstanding as of June 30, 2025 was 4.92%. Sunoco LP Credit Facilities Sunoco LP’s $1.50 billion credit facility, which shall be increased to approximately $2.46 billion upon and subject to the Parkland acquisition closing date, matures in June 2030, which date may be extended in accordance with the terms of Sunoco LP’s credit facility. Sunoco LP’s credit facility can be increased from time to time upon Sunoco LP’s written request, subject to certain conditions, up to an aggregate amount of $2.00 billion, or, on and after the Parkland acquisition closing date, $3.50 billion. As of June 30, 2025, Sunoco LP’s revolving credit facility had $206 million of outstanding borrowings and $51 million in standby letters of credit outstanding. The unused availability on Sunoco LP’s credit facility as of June 30, 2025 was $1.24 billion. The weighted average interest rate on the total amount outstanding as of June 30, 2025 was 6.42%. Upon the closing of Sunoco LP’s acquisition of NuStar, the commitments under NuStar’s receivables financing agreement were reduced to zero during a suspension period, for which the period end has not been determined. As of June 30, 2025, this facility had no outstanding borrowings. USAC Credit Facility As of June 30, 2025, USAC’s credit facility, which matures in December 2026, had $771 million of outstanding borrowings and $1 million outstanding letters of credit. As of June 30, 2025, USAC’s credit facility had $829 million of remaining unused availability of which, due to restrictions related to compliance with the applicable financial covenants, $735 million was available to be drawn. The weighted average interest rate on the total amount outstanding as of June 30, 2025 was 6.98%. Compliance with our Covenants We and our subsidiaries were in compliance with all requirements, tests, limitations and covenants related to our debt agreements as of June 30, 2025. For the quarter ended June 30, 2025, the Partnership’s leverage ratio, as calculated pursuant to the covenant related to its Five-Year Credit Facility, was 3.27x.
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