Energy Transfer, the pipeline operator led by Kelcy Warren, is preparing to move its primary stock listing to the Texas Stock Exchange. The move would mark the first major corporate listing for the nascent bourse, which launched last year to challenge New York’s dominance in capital markets.
The company is in advanced talks to shift its listing from the New York Stock Exchange, according to people familiar with the matter. An announcement could come in the coming weeks, though the timing is not final and plans could still change.
Energy Transfer, which has a market value of roughly $70 billion, would be the largest company to call the Texas exchange home. Its listing would provide a significant credibility boost for the upstart venue, which has yet to attract any major public companies.
The Texas Stock Exchange was founded with the backing of influential investors and business leaders who argued that traditional exchanges impose costly and burdensome regulations. Its leadership has promoted a more streamlined approach to compliance and governance.
The exchange has spent the past year building infrastructure and securing regulatory approvals. While it has signed up market makers and trading firms, recruiting public companies has proven slower than organizers initially projected.
Energy Transfer’s potential departure from the NYSE follows a broader trend of corporate relocations to Texas. Several large firms, including Tesla and Hewlett Packard Enterprise, have moved their headquarters to the state in recent years, citing its business climate and lower taxes.
Shifting a stock listing, however, involves more than changing an address. Companies must meet the new exchange’s listing standards, coordinate with clearinghouses, and ensure that major index providers recognize the move for inclusion purposes.
Analysts say Energy Transfer’s decision could open the door for other companies to follow. If the Texas exchange can secure a handful of large listings, it may begin to chip away at the duopoly long held by the NYSE and Nasdaq.
Spokespeople for Energy Transfer and the Texas Stock Exchange declined to comment on the discussions. The deal is not yet finalized, and it remains possible that the company will stay on its current exchange.
