Energy Transfer LP

7. REDEEMABLE NONCONTROLLING INTERESTS:

Certain redeemable noncontrolling interests in the Partnership’s subsidiaries are reflected as mezzanine equity on the consolidated balance sheets.

Redeemable noncontrolling interests consisted of the following:

(1) Relates to noncontrolling interest holders in one of the Partnership’s consolidated subsidiaries that have the option to sell their interests to the Partnership.

USAC Series A Preferred Units

On June 3, 2025, the holders of USAC preferred units elected to convert 100,000 preferred units into 4,997,126 common units. On December 2, 2025, the holders of USAC preferred units elected to convert the remaining 80,000 preferred units into 3,997,700 common units. As of December 31, 2025, all of USAC preferred units had been converted to common units.

Niobrara Preferred Units

Crestwood Niobrara LLC (“Crestwood Niobrara”), a subsidiary acquired in the Crestwood acquisition in November 2023, has outstanding two series of preferred units (collectively, the “Niobrara Preferred Units”) held by a third-party. The Niobrara Preferred Units are redeemable by the Partnership or the preferred interest holder and are also convertible by the preferred interest holder into Crestwood Niobrara common units. The preferred interest holder also has the option to contribute additional capital to Crestwood Niobrara to increase their common ownership percentage in Crestwood Niobrara to 50% upon the conversion.

On February 23, 2024, the Partnership paid approximately $37 million in cash to redeem a portion of the outstanding Crestwood Niobrara LLC preferred units.