Why Energy Transfer Units Dropped as Much as 10% Today
Units of midstream master limited partnership Energy Transfer (NYSE: ET) were down by as much as 10% in early afternoon trading on Oct. 27. There was no particular news out today that put investors in a selling mood, but an update after the close on Oct. 26 was definitely not good reading.
At 5:30 p.m. EDT yesterday, Energy Transfer, in a very short news release, let investors know that it was going to release earnings on Nov. 4. And that it was going to pay a third-quarter distribution of $0.1525 per unit. That got investors a little upset, given that the previous quarter's distribution was $0.305 per unit. Effectively, Energy Transfer has cut its distribution by a whopping 50%. Not surprisingly, investors were displeased with that news.
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Source Fool.com
