Energy Transfer LP (NYSE: ET) officially changed its state of formation from Delaware to Texas on July 6, 2026. This redomiciliation was approved by the board of directors of the general partner, relying partly on the recommendation of the Conflicts Committee. This shift means that Energy Transfer's affairs are now governed by the Texas Business Organizations Code, replacing the Delaware Revised Uniform Limited Partnership Act. The move did not change the company's CUSIP, trading symbol (ET), federal tax identification number, or materially alter its business, offices, assets, liabilities, obligations, or net worth, and its principal executive offices remain in Dallas, Texas.
Energy Transfer was not alone in this move; Sunoco LP (NYSE: SUN), SunocoCorp LLC (NYSE: SUNC), and USA Compression Partners, LP (NYSE: USAC) also redomiciled to Texas on the same date. While the legal change was effective on July 6, 2026, the redomiciliations were considered effective for market purposes on July 13, 2026, according to NYSE guidelines. The economic and governance rights of unitholders for all these entities were preserved, with each common unit converting from a Delaware-based unit to a Texas-based unit.
This move by Energy Transfer and its affiliates is part of a growing trend of companies, dubbed the "DExit" movement, relocating their legal homes from Delaware to other states like Texas and Nevada. Nearly half of the publicly traded corporations proposing to move out of Delaware in the first half of 2026 chose Texas as their destination. Texas has enhanced its laws to be more management-friendly, including measures allowing companies to ban investor proposals and certain lawsuits from smaller shareholders, a factor that is attracting businesses. Major companies like Tesla and Dell have also reincorporated in Texas, with many headquartered in the state being prime candidates for such reincorporation. Katherine Frank, a partner at Vinson & Elkins LLP, noted the "eagerness to consolidate in a state that’s perceived as business friendly."
Despite the increasing number of companies leaving Delaware, the state's overall corporate numbers continue to grow, reporting 425,765 corporations in 2025, a 6% increase from 2024. However, Texas is actively pitching its home companies on paying franchise taxes in the same state where they operate, which is proving effective. Energy Transfer operates an extensive energy infrastructure across 44 states, with approximately 140,000 miles of pipeline. It also holds significant interests in Sunoco LP and USA Compression Partners, LP, owning approximately 15% and 32% of their common units, respectively.
