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Corporate merger Energy Transfer Partners and Sunoco Logistics Partners Quicken 2017

Leslie Charmatz
Leslie Charmatz Member ✭✭
edited May 2018 in Investing (Windows)
On 5/1/17 Energy Transfer Partners acquired Sunoco Logistics Partners and also issued 1.5 shares of of Energy Transfer Partners under the same symbol as previous entity Energy Transfers Prtnrs LP Unit LTD Partn  (ETP)  Since I owned the old partnership how to account for the incr in ETP shares (specifically from 612 to 918 shs) reported by my broker Oppenheimer & Co. Secondly received equal no. of shares in ETP for all previously exiting shs of Sunoco Logistics Partners (SXL) (specifically 2,523 shs out of SXL and into ETP).  Are both treated as corporate acquisitions in Quicken, one with 1:1 and second with 1:1:5 shares and the elimination of the old ETP and SXL shares.

Comments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited May 2018
    Reference this information (source: http://ir.energytransfer.com/phoenix.zhtml?c=106094&p=irol-IRHome):
    On April 28, 2017, Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) closed on their previously announced merger, in which SXL acquired ETP. Upon closing of the merger, SXL changed its name to Energy Transfer Partners, L.P. and applied to list its common units on the NYSE under the ticker symbol “ETP.” Effective with the opening of market on April 28, 2017, ETP ceased to be a publicly traded company and its common units previously listed on the NYSE under the ticker symbol “ETP” have been de-listed. Effective with the opening of market on May 1, 2017, SXL common units are expected to begin trading on the NYSE under the new symbol “ETP.” This change is now reflected in the ETP stock price.
    So I gather you started 4/28 with 612 units of ETP and 1335 units of SXL (2253-918).  In Quicken, I would start with a Corporate Acquisition transaction with SXL acquiring ETP at a 1.5 share ratio.  That should generate a Remove Shares of the 618 ETP and a set of Add Shares (total 918 shares) for SXL bringing your SXL holdings to 2253.  

    Step 2 is sort of your choice:
    1. Existing ETP acquires SXL at 1:1, or 
    2. You change ticker from ETP to ETP(old) or similar (deleting old prices) and create a new security (Energy Transfer (new)) with ticker ETP, then have that new security acquire SXL, or 
    3. You change ticker from ETP to ETP(old) or similar (deleting old prices) and then edit existing SXL to be a new name (Energy Transfers (new)) with a new ticker (ETP).  
    You should backup first, then you can try the various approaches.  I would bias to 2 although 3 is slightly more accurate.  I think the criteria should consider how the older prices mesh with the newer prices and how such valuations are maintained.  #2 should offer a clear history of how you acquired SXL and how its prices changed after that.  #3 will show you buying ETP(new) when you really had bought Sunoco, but the prices should all flow correctly.  While #1 is simple, it tends to misrepresent the transition from historical ETP to the new ETP/Sunuco  

    After all that is done, you may need to undo the match to online security for the old ETP and create a new match for the new ETP to your brokers info.  

    HTH  
  • Leslie Charmatz
    Leslie Charmatz Member ✭✭
    edited May 2017
    q.lurker said:

    Reference this information (source: http://ir.energytransfer.com/phoenix.zhtml?c=106094&p=irol-IRHome):

    On April 28, 2017, Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) closed on their previously announced merger, in which SXL acquired ETP. Upon closing of the merger, SXL changed its name to Energy Transfer Partners, L.P. and applied to list its common units on the NYSE under the ticker symbol “ETP.” Effective with the opening of market on April 28, 2017, ETP ceased to be a publicly traded company and its common units previously listed on the NYSE under the ticker symbol “ETP” have been de-listed. Effective with the opening of market on May 1, 2017, SXL common units are expected to begin trading on the NYSE under the new symbol “ETP.” This change is now reflected in the ETP stock price.
    So I gather you started 4/28 with 612 units of ETP and 1335 units of SXL (2253-918).  In Quicken, I would start with a Corporate Acquisition transaction with SXL acquiring ETP at a 1.5 share ratio.  That should generate a Remove Shares of the 618 ETP and a set of Add Shares (total 918 shares) for SXL bringing your SXL holdings to 2253.  

    Step 2 is sort of your choice:
    1. Existing ETP acquires SXL at 1:1, or 
    2. You change ticker from ETP to ETP(old) or similar (deleting old prices) and create a new security (Energy Transfer (new)) with ticker ETP, then have that new security acquire SXL, or 
    3. You change ticker from ETP to ETP(old) or similar (deleting old prices) and then edit existing SXL to be a new name (Energy Transfers (new)) with a new ticker (ETP).  
    You should backup first, then you can try the various approaches.  I would bias to 2 although 3 is slightly more accurate.  I think the criteria should consider how the older prices mesh with the newer prices and how such valuations are maintained.  #2 should offer a clear history of how you acquired SXL and how its prices changed after that.  #3 will show you buying ETP(new) when you really had bought Sunoco, but the prices should all flow correctly.  While #1 is simple, it tends to misrepresent the transition from historical ETP to the new ETP/Sunuco  

    After all that is done, you may need to undo the match to online security for the old ETP and create a new match for the new ETP to your brokers info.  

    HTH  Thx for your comments.  Actually prior to the closing (4/28) of this merger I had 612 shs of old ETP and 2,523 shs of SXL.  These agree with my broker statement as of end of April.The 918 shs of ETP comes form the 1:1.5 conversion of the old ETP partnership interest to the new ETP shs. There were actually 2,523 shs converted from SXL to new ETP.  So when all is converted I will end up with 918+2,523=3,441 new ETP and zero old ETP and zero SXL.  I was planning to use Corporate Acquisition first for the 1:1.5 conversion of old ETP to new ETP and secondly using 1:1 conversion.  This total ETP shs agrees with my current holdings as of today on Oppenheimer website.
  • mtn_living
    mtn_living Member ✭✭
    edited May 2017
    q.lurker said:

    Reference this information (source: http://ir.energytransfer.com/phoenix.zhtml?c=106094&p=irol-IRHome):

    On April 28, 2017, Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) closed on their previously announced merger, in which SXL acquired ETP. Upon closing of the merger, SXL changed its name to Energy Transfer Partners, L.P. and applied to list its common units on the NYSE under the ticker symbol “ETP.” Effective with the opening of market on April 28, 2017, ETP ceased to be a publicly traded company and its common units previously listed on the NYSE under the ticker symbol “ETP” have been de-listed. Effective with the opening of market on May 1, 2017, SXL common units are expected to begin trading on the NYSE under the new symbol “ETP.” This change is now reflected in the ETP stock price.
    So I gather you started 4/28 with 612 units of ETP and 1335 units of SXL (2253-918).  In Quicken, I would start with a Corporate Acquisition transaction with SXL acquiring ETP at a 1.5 share ratio.  That should generate a Remove Shares of the 618 ETP and a set of Add Shares (total 918 shares) for SXL bringing your SXL holdings to 2253.  

    Step 2 is sort of your choice:
    1. Existing ETP acquires SXL at 1:1, or 
    2. You change ticker from ETP to ETP(old) or similar (deleting old prices) and create a new security (Energy Transfer (new)) with ticker ETP, then have that new security acquire SXL, or 
    3. You change ticker from ETP to ETP(old) or similar (deleting old prices) and then edit existing SXL to be a new name (Energy Transfers (new)) with a new ticker (ETP).  
    You should backup first, then you can try the various approaches.  I would bias to 2 although 3 is slightly more accurate.  I think the criteria should consider how the older prices mesh with the newer prices and how such valuations are maintained.  #2 should offer a clear history of how you acquired SXL and how its prices changed after that.  #3 will show you buying ETP(new) when you really had bought Sunoco, but the prices should all flow correctly.  While #1 is simple, it tends to misrepresent the transition from historical ETP to the new ETP/Sunuco  

    After all that is done, you may need to undo the match to online security for the old ETP and create a new match for the new ETP to your brokers info.  

    HTH  This was very helpful, I'm in same boat, went with #2. I also had ETP (old) I had to "acquire" by SXL then acquire by ETP (new) as well as having SXL that needed to be acquired by ETP (new).
  • Leslie Charmatz
    Leslie Charmatz Member ✭✭
    edited May 2017
    q.lurker said:

    Reference this information (source: http://ir.energytransfer.com/phoenix.zhtml?c=106094&p=irol-IRHome):

    On April 28, 2017, Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) closed on their previously announced merger, in which SXL acquired ETP. Upon closing of the merger, SXL changed its name to Energy Transfer Partners, L.P. and applied to list its common units on the NYSE under the ticker symbol “ETP.” Effective with the opening of market on April 28, 2017, ETP ceased to be a publicly traded company and its common units previously listed on the NYSE under the ticker symbol “ETP” have been de-listed. Effective with the opening of market on May 1, 2017, SXL common units are expected to begin trading on the NYSE under the new symbol “ETP.” This change is now reflected in the ETP stock price.
    So I gather you started 4/28 with 612 units of ETP and 1335 units of SXL (2253-918).  In Quicken, I would start with a Corporate Acquisition transaction with SXL acquiring ETP at a 1.5 share ratio.  That should generate a Remove Shares of the 618 ETP and a set of Add Shares (total 918 shares) for SXL bringing your SXL holdings to 2253.  

    Step 2 is sort of your choice:
    1. Existing ETP acquires SXL at 1:1, or 
    2. You change ticker from ETP to ETP(old) or similar (deleting old prices) and create a new security (Energy Transfer (new)) with ticker ETP, then have that new security acquire SXL, or 
    3. You change ticker from ETP to ETP(old) or similar (deleting old prices) and then edit existing SXL to be a new name (Energy Transfers (new)) with a new ticker (ETP).  
    You should backup first, then you can try the various approaches.  I would bias to 2 although 3 is slightly more accurate.  I think the criteria should consider how the older prices mesh with the newer prices and how such valuations are maintained.  #2 should offer a clear history of how you acquired SXL and how its prices changed after that.  #3 will show you buying ETP(new) when you really had bought Sunoco, but the prices should all flow correctly.  While #1 is simple, it tends to misrepresent the transition from historical ETP to the new ETP/Sunuco  

    After all that is done, you may need to undo the match to online security for the old ETP and create a new match for the new ETP to your brokers info.  

    HTH  If you do step 1 to acquire ETP Old by SXL what price would you use for the value after acquisition?  Same question for acquisition of SXL by ETP New?
  • mtn_living
    mtn_living Member ✭✭
    edited May 2017
    q.lurker said:

    Reference this information (source: http://ir.energytransfer.com/phoenix.zhtml?c=106094&p=irol-IRHome):

    On April 28, 2017, Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) closed on their previously announced merger, in which SXL acquired ETP. Upon closing of the merger, SXL changed its name to Energy Transfer Partners, L.P. and applied to list its common units on the NYSE under the ticker symbol “ETP.” Effective with the opening of market on April 28, 2017, ETP ceased to be a publicly traded company and its common units previously listed on the NYSE under the ticker symbol “ETP” have been de-listed. Effective with the opening of market on May 1, 2017, SXL common units are expected to begin trading on the NYSE under the new symbol “ETP.” This change is now reflected in the ETP stock price.
    So I gather you started 4/28 with 612 units of ETP and 1335 units of SXL (2253-918).  In Quicken, I would start with a Corporate Acquisition transaction with SXL acquiring ETP at a 1.5 share ratio.  That should generate a Remove Shares of the 618 ETP and a set of Add Shares (total 918 shares) for SXL bringing your SXL holdings to 2253.  

    Step 2 is sort of your choice:
    1. Existing ETP acquires SXL at 1:1, or 
    2. You change ticker from ETP to ETP(old) or similar (deleting old prices) and create a new security (Energy Transfer (new)) with ticker ETP, then have that new security acquire SXL, or 
    3. You change ticker from ETP to ETP(old) or similar (deleting old prices) and then edit existing SXL to be a new name (Energy Transfers (new)) with a new ticker (ETP).  
    You should backup first, then you can try the various approaches.  I would bias to 2 although 3 is slightly more accurate.  I think the criteria should consider how the older prices mesh with the newer prices and how such valuations are maintained.  #2 should offer a clear history of how you acquired SXL and how its prices changed after that.  #3 will show you buying ETP(new) when you really had bought Sunoco, but the prices should all flow correctly.  While #1 is simple, it tends to misrepresent the transition from historical ETP to the new ETP/Sunuco  

    After all that is done, you may need to undo the match to online security for the old ETP and create a new match for the new ETP to your brokers info.  

    HTH  I just used the opening price for the new ETP on May 1 for everything. Not sure that's correct but everything looks ok and my cost basis looks right in the results. I never really understand that entry in these situations but that's what seemed right,
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited May 2017
    q.lurker said:

    Reference this information (source: http://ir.energytransfer.com/phoenix.zhtml?c=106094&p=irol-IRHome):

    On April 28, 2017, Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) closed on their previously announced merger, in which SXL acquired ETP. Upon closing of the merger, SXL changed its name to Energy Transfer Partners, L.P. and applied to list its common units on the NYSE under the ticker symbol “ETP.” Effective with the opening of market on April 28, 2017, ETP ceased to be a publicly traded company and its common units previously listed on the NYSE under the ticker symbol “ETP” have been de-listed. Effective with the opening of market on May 1, 2017, SXL common units are expected to begin trading on the NYSE under the new symbol “ETP.” This change is now reflected in the ETP stock price.
    So I gather you started 4/28 with 612 units of ETP and 1335 units of SXL (2253-918).  In Quicken, I would start with a Corporate Acquisition transaction with SXL acquiring ETP at a 1.5 share ratio.  That should generate a Remove Shares of the 618 ETP and a set of Add Shares (total 918 shares) for SXL bringing your SXL holdings to 2253.  

    Step 2 is sort of your choice:
    1. Existing ETP acquires SXL at 1:1, or 
    2. You change ticker from ETP to ETP(old) or similar (deleting old prices) and create a new security (Energy Transfer (new)) with ticker ETP, then have that new security acquire SXL, or 
    3. You change ticker from ETP to ETP(old) or similar (deleting old prices) and then edit existing SXL to be a new name (Energy Transfers (new)) with a new ticker (ETP).  
    You should backup first, then you can try the various approaches.  I would bias to 2 although 3 is slightly more accurate.  I think the criteria should consider how the older prices mesh with the newer prices and how such valuations are maintained.  #2 should offer a clear history of how you acquired SXL and how its prices changed after that.  #3 will show you buying ETP(new) when you really had bought Sunoco, but the prices should all flow correctly.  While #1 is simple, it tends to misrepresent the transition from historical ETP to the new ETP/Sunuco  

    After all that is done, you may need to undo the match to online security for the old ETP and create a new match for the new ETP to your brokers info.  

    HTH  
    If you do step 1 to acquire ETP Old by SXL what price would you use for the value after acquisition?  Same question for acquisition of SXL by ETP New?
    Exactly the proper question as it speaks to the difference between ETP-old and ETP-New.  That is where I think you need to be cautious so that your historical info meshes with the future data.  

    Yahoo Finance shows SXL as closing in the $24 range with a 4/28 close of 23.94.  For ETP, they show the late April closings in the $36 range with a 35.93 close on 4/28 and then $24 prices in May with 5/1 closing of 23.42.  

    For the SXL acquiring ETP-Old, I would use the 4/28 close of SXL at 23.94.  YOu had 612 old shares valued at about 36; now you have 50% more shares valued at 2/3.  No real change.  

    For the second step going the ETP-New acquiring SXL route, that is not a 'real' transaction (the real transaction is a name change), so you would use SXL/ETP-New values - the 23.94 4/28 valuation or the 23.42 5/1 valuation.  The ETP-New prices should reflect the old SXL prices (consistent $24/share range).  The ETP-Old prices should range in the $36 territory with no data after 4/28.    
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