Mar. 13 at 10:34 AM
$ET A plan to release and refill the SPR
The U.S. plans to release 172 million barrels from the SPR, which it expects will take 120 days based on the planned discharge rate. These volumes will likely flow through Energy Transfer's vast oil network, including its Nederland and Houston terminals. As a result, it should see higher earnings over the next couple of quarters as the U.S. releases these volumes.
Additionally, the U.S. plans to rapidly refill the SPR following this release. It has already arranged to replenish its strategic reserves with about 200 million barrels of oil over the next year, or 20% more than it expects to draw down. Energy Transfer is also a likely beneficiary of the rapid replenishment of the SPR, given the critical role its infrastructure plays in supporting this stockpile.
