{"data":{"id":"sw_5b097001c712d5f75a9f","slug":"energy-transfer-s-9-25-convertible-preferred-trades-near-20-above-par","title":"Energy Transfer's 9.25% Convertible Preferred Trades Near 20% Above Par","subheadline":"ET'I, Energy Transfer LP's Series I convertible preferred, stands out as one of the few preferreds priced well above liquidation value while most peers trade at steep discounts.","summary":"Energy Transfer's 9.25% Series I convertible preferred (ET'I) trades near $10.80, about 19.75% above its $9 par value, a rare premium in a preferred market where most issues sit at discounts of 20% or more.","body":"Energy Transfer LP's 9.25% cumulative convertible perpetual preferred stock, known by tickers including ET'I and ET-PRI, is trading at roughly $10.80 as of October 7, 2026, a level that puts it about 19.75 percent above its $9 liquidation preference. That premium, equal to roughly $1.80 per share over par, stands out in a preferred market where the typical issue trades at a discount rather than a premium.\n\nThe structure of ET'I helps explain the gap. Issued in November 2023, the security carries a 9.25 percent original coupon on a $9 liquidation preference, translating to an annual dividend of $0.8443 per share and a current yield of 7.72 percent at the recent price. It is cumulative, meaning any skipped dividend must eventually be paid, and it is perpetual with no stated maturity and no call date, so it cannot be redeemed early by the issuer. Its distinguishing feature is convertibility: holders can convert into Energy Transfer common units at a conversion price of $44.09, a ratio of 0.2070 common units per preferred share. With Energy Transfer's common units (ET) last trading at $20.48, down 1.25 percent on the day, the conversion option is well out of the money, meaning the embedded option is not currently the dominant driver of the preferred's price. Instead, the combination of a high stated coupon, cumulative protection and perpetual structure appears to be what investors are paying up for.\n\nThe premium may matter to investors because it runs counter to the broader trend in the preferred sector. Among a basket of 33 preferred issues with a current yield, the average pricing sits at roughly a 20.6 percent discount to par, according to data reviewed alongside ET'I. That means ET'I's nearly 20 percent premium represents a swing of roughly 40 percentage points relative to the group average, a gap that first stood out in data tracked on Preferred Stock AI, a Madison Labs research site. Whether that spread reflects confidence in Energy Transfer's credit profile, scarcity value tied to the security's above-market coupon, or simply thinner trading in a smaller issue is a question for individual investors and analysts to weigh, not a conclusion this article draws.\n\nBackground on the issuer adds context. Energy Transfer LP is a Delaware-based master limited partnership operating one of the largest midstream energy networks in the United States, spanning natural gas gathering, interstate and intrastate transportation and storage, and crude oil, NGL and refined products logistics. It also holds stakes in Sunoco LP and USA Compression Partners. News flow around the common stock has been active this week: on October 6, 2026, the company announced it would pay $2.625 billion to acquire Vaquero Midstream, expanding its gas gathering and processing footprint in the Delaware Basin, according to coverage from Benzinga and other outlets. The common unit's 52 week range of $16.18 to $21.84 shows it has been volatile even as the acquisition news circulated, trading at $20.48 against a 52 week high of $21.84.\n\nThe preferred's own trading range over the past year, between $10.75 and $12.28, is narrower in percentage terms than the common's swings, consistent with its fixed income like characteristics even though it carries a conversion feature. Volume in the preferred on October 7 was 70,897 shares, far below the common's 10,066,130 shares, underscoring that this remains a thinly traded instrument relative to the underlying stock.\n\nThe broader market backdrop on the day included declines in several large industrial and technology names, with Caterpillar down 5.7 percent and Deere down 3.8 percent, alongside a 4.1 percent gain in Micron Technology, illustrating a mixed tape for risk assets generally. Cryptocurrency markets were also softer, with Bitcoin down 1.4 percent and Ethereum down 1.1 percent over 24 hours. None of these moves are directly tied to Energy Transfer's preferred, but they reflect a market environment in which income oriented instruments like ET'I are being priced alongside broader swings in equity and digital asset sentiment.\n\nInvestors and analysts following ET'I are likely to watch several developments next: how the market digests the Vaquero Midstream acquisition and its effect on Energy Transfer's balance sheet and distribution capacity, whether the common unit's price moves closer to or further from the $44.09 conversion price, and whether the preferred's premium to par persists or narrows as the next ex-dividend date, scheduled for November 2026 based on the quarterly schedule, approaches. Because ET'I is not callable and its yield to call and yield to worst are not applicable given its convertible, perpetual structure, its pricing will likely continue to hinge on the interplay between its fixed coupon appeal and the trajectory of Energy Transfer's common units, rather than on any near term redemption dynamics.","source":{"name":"Preferred Stock AI","slug":"preferredstock-ai"},"category":"Preferred Stocks","article_type":"Data Story","license":"Free to republish, in full or in part, with attribution to Capital Data Wire and a link to the original article. No fees, registration, or permission required.","quality_score":84,"human_reviewed":false,"original_url":"https://preferredstock.ai/symbol/ET-P-I","featured_image":null,"published_at":"2026-10-08T11:26:40.335910+00:00","updated_at":"2026-10-08T11:26:40.335910+00:00","is_demo":false,"attribution":"Via Capital Data Wire. Discovered via Preferred Stock AI.","attribution_html":"Via Capital Data Wire. Discovered via Preferred Stock AI."},"meta":{"demo_data":false}}