Sign In  |  Register  |  About Sunnyvale  |  Contact Us

Sunnyvale, CA
September 01, 2020 10:10am
7-Day Forecast | Traffic
  • Search Hotels in Sunnyvale

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Energy Transfer Reports Third Quarter 2023 Results

Energy Transfer LP (NYSE:ET) (“Energy Transfer” or the “Partnership”) today reported financial results for the quarter ended September 30, 2023.

Energy Transfer reported net income attributable to partners for the three months ended September 30, 2023 of $584 million. For the three months ended September 30, 2023, net income per common unit (basic) was $0.15 per unit.

Adjusted EBITDA for the three months ended September 30, 2023 was $3.54 billion compared to $3.09 billion for the three months ended September 30, 2022.

Distributable Cash Flow attributable to partners, as adjusted, for the three months ended September 30, 2023 was $1.99 billion compared to $1.58 billion for the three months ended September 30, 2022.

Growth capital expenditures in the third quarter of 2023 were $418 million while maintenance capital expenditures were $180 million.

Operational Highlights

  • During the third quarter of 2023, Energy Transfer’s assets continued to reach new milestones, with volumes increasing across most segments compared to the same period last year.
    • NGL fractionation volumes were up 9%, setting a new Partnership record.
    • NGL transportation volumes were up 14%, setting a new Partnership record.
    • NGL exports were up more than 20%, setting a new Partnership record.
    • Midstream gathered volumes increased 4%.
    • Intrastate natural gas transportation volumes were up 2%.
    • Interstate natural gas transportation volumes were up 15%.
    • Crude transportation and terminal volumes were up 23% and 15%, respectively, both of which also set new Partnership records.
  • In August 2023, Energy Transfer placed into service its eighth fractionator at its Mount Belvieu, Texas facility, bringing the Partnership’s total fractionation capacity at Mont Belvieu to over 1.15 million barrels per day.

Strategic Highlights

  • On August 16, 2023, the Partnership announced its entry into a definitive merger agreement to acquire Crestwood Equity Partners LP (“Crestwood”). Under the terms of the merger agreement, Crestwood’s common unitholders will receive 2.07 Energy Transfer common units for each Crestwood common unit. Crestwood owns gathering and processing assets located in the Williston, Delaware and Powder River basins. On October 30, 2023, a majority of Crestwood’s unitholders voted to approve the merger. The transaction is expected to close on November 3, 2023, subject to customary closing conditions.

Financial Highlights

  • Energy Transfer now expects its full-year 2023 Adjusted EBITDA to range between $13.5 billion and $13.6 billion, including the consolidated operations of Crestwood in November and December 2023. The Partnership now expects its 2023 growth capital expenditures to be slightly below its previously announced guidance of $2.0 billion and maintenance capital expenditures to be between $740 million and $790 million, including Crestwood.
  • In August 2023, Energy Transfer’s senior unsecured debt rating was upgraded by Standard and Poor’s to BBB with a Stable outlook.
  • In October 2023, Energy Transfer announced a quarterly cash distribution of $0.3125 per common unit ($1.25 annualized) for the quarter ended September 30, 2023.
  • As of September 30, 2023, the Partnership’s revolving credit facility had an aggregate $2.12 billion of available borrowing capacity. In October 2023, the Partnership used a portion of the proceeds from the sale of $4.00 billion aggregate principal amount of senior notes to repay borrowings on the revolving credit facility.

Energy Transfer benefits from a portfolio of assets with exceptional product and geographic diversity. The Partnership’s multiple segments generate high-quality, balanced earnings with no single segment contributing more than one-third of the Partnership’s consolidated Adjusted EBITDA for the three months ended September 30, 2023. The vast majority of the Partnership’s segment margins are fee-based and therefore have limited commodity price sensitivity.

Conference Call information:

The Partnership has scheduled a conference call for 3:30 p.m. Central Time/4:30 p.m. Eastern Time on Wednesday, November 1, 2023 to discuss its third quarter 2023 results and provide an update on the Partnership. The conference call will be broadcast live via an internet webcast, which can be accessed through www.energytransfer.com and will also be available for replay on the Partnership’s website for a limited time.

Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with nearly 125,000 miles of pipeline and associated energy infrastructure. Energy Transfer’s strategic network spans 41 states with assets in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (“NGL”) and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and approximately 34% of the outstanding common units of Sunoco LP (NYSE: SUN), and the general partner interests and approximately 47% of the outstanding common units of USA Compression Partners, LP (NYSE: USAC). For more information, visit the Energy Transfer LP website at www.energytransfer.com.

Sunoco LP (NYSE: SUN) is a master limited partnership with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers, and distributors located in more than 40 U.S. states and territories, as well as refined product transportation and terminalling assets. For more information, visit the Sunoco LP website at www.sunocolp.com.

USA Compression Partners, LP (NYSE: USAC) is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USAC partners with a broad customer base composed of producers, processors, gatherers and transporters of natural gas and crude oil. USAC focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. For more information, visit the USAC website at www.usacompression.com.

Forward-Looking Statements

This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.

The information contained in this press release is available on our website at www.energytransfer.com.

ENERGY TRANSFER LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

(unaudited)

 

 

September 30,

2023

 

December 31,

2022

ASSETS

Current assets

$

13,423

 

 

$

12,081

 

 

 

 

 

Property, plant and equipment, net

 

80,873

 

 

 

80,311

 

 

 

 

 

Investments in unconsolidated affiliates

 

2,993

 

 

 

2,893

 

Lease right-of-use assets, net

 

820

 

 

 

819

 

Non-current derivative assets

 

4

 

 

 

 

Other non-current assets, net

 

1,690

 

 

 

1,558

 

Intangible assets, net

 

5,204

 

 

 

5,415

 

Goodwill

 

2,564

 

 

 

2,566

 

Total assets

$

107,571

 

 

$

105,643

 

LIABILITIES AND EQUITY

Current liabilities (1)

$

12,755

 

 

$

10,368

 

 

 

 

 

Long-term debt, less current maturities

 

47,075

 

 

 

48,260

 

Non-current derivative liabilities

 

 

 

 

23

 

Non-current operating lease liabilities

 

775

 

 

 

798

 

Deferred income taxes

 

3,891

 

 

 

3,701

 

Other non-current liabilities

 

2,016

 

 

 

1,341

 

 

 

 

 

Commitments and contingencies

 

 

 

Redeemable noncontrolling interests

 

498

 

 

 

493

 

 

 

 

 

Equity:

 

 

 

Limited Partners:

 

 

 

Preferred Unitholders

 

6,083

 

 

 

6,051

 

Common Unitholders

 

27,014

 

 

 

26,960

 

General Partner

 

(2

)

 

 

(2

)

Accumulated other comprehensive income

 

29

 

 

 

16

 

Total partners’ capital

 

33,124

 

 

 

33,025

 

Noncontrolling interests

 

7,437

 

 

 

7,634

 

Total equity

 

40,561

 

 

 

40,659

 

Total liabilities and equity

$

107,571

 

 

$

105,643

 

 

(1)

As of September 30, 2023, current liabilities include $1.00 billion of senior notes issued by the Bakken Pipeline entities, which mature in April 2024. The Partnership’s proportional ownership in the Bakken Pipeline entities is 36.4%.

ENERGY TRANSFER LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars and units in millions, except per unit data)

(unaudited)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2023

 

2022

 

2023

 

2022

REVENUES

$

20,739

 

 

$

22,939

 

 

$

58,054

 

 

$

69,375

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

Cost of products sold

 

16,059

 

 

 

18,516

 

 

 

44,761

 

 

 

56,169

 

Operating expenses

 

1,105

 

 

 

973

 

 

 

3,224

 

 

 

2,982

 

Depreciation, depletion and amortization

 

1,107

 

 

 

1,030

 

 

 

3,227

 

 

 

3,104

 

Selling, general and administrative

 

234

 

 

 

361

 

 

 

700

 

 

 

802

 

Impairment losses and other

 

1

 

 

 

86

 

 

 

12

 

 

 

386

 

Total costs and expenses

 

18,506

 

 

 

20,966

 

 

 

51,924

 

 

 

63,443

 

OPERATING INCOME

 

2,233

 

 

 

1,973

 

 

 

6,130

 

 

 

5,932

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

Interest expense, net of interest capitalized

 

(632

)

 

 

(577

)

 

 

(1,892

)

 

 

(1,714

)

Equity in earnings of unconsolidated affiliates

 

103

 

 

 

68

 

 

 

286

 

 

 

186

 

Gains on interest rate derivatives

 

32

 

 

 

60

 

 

 

47

 

 

 

303

 

Non-operating litigation-related loss

 

(625

)

 

 

 

 

 

(625

)

 

 

 

Other, net

 

13

 

 

 

(120

)

 

 

37

 

 

 

(117

)

INCOME BEFORE INCOME TAX EXPENSE

 

1,124

 

 

 

1,404

 

 

 

3,983

 

 

 

4,590

 

Income tax expense

 

77

 

 

 

82

 

 

 

256

 

 

 

159

 

NET INCOME

 

1,047

 

 

 

1,322

 

 

 

3,727

 

 

 

4,431

 

Less: Net income attributable to noncontrolling interests

 

451

 

 

 

304

 

 

 

1,080

 

 

 

793

 

Less: Net income attributable to redeemable noncontrolling interests

 

12

 

 

 

12

 

 

 

39

 

 

 

37

 

NET INCOME ATTRIBUTABLE TO PARTNERS

 

584

 

 

 

1,006

 

 

 

2,608

 

 

 

3,601

 

General Partner’s interest in net income

 

 

 

 

1

 

 

 

2

 

 

 

3

 

Preferred Unitholders’ interest in net income

 

118

 

 

 

106

 

 

 

340

 

 

 

317

 

Common Unitholders’ interest in net income

$

466

 

 

$

899

 

 

$

2,266

 

 

$

3,281

 

NET INCOME PER COMMON UNIT:

 

 

 

 

 

 

 

Basic

$

0.15

 

 

$

0.29

 

 

$

0.73

 

 

$

1.06

 

Diluted

$

0.15

 

 

$

0.29

 

 

$

0.72

 

 

$

1.06

 

WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING:

 

 

 

 

 

 

 

Basic

 

3,144.0

 

 

 

3,087.6

 

 

 

3,122.3

 

 

 

3,085.6

 

Diluted

 

3,167.7

 

 

 

3,108.6

 

 

 

3,145.9

 

 

 

3,106.4

 

ENERGY TRANSFER LP AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

(Dollars and units in millions)

(unaudited)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2023

 

2022

 

2023

 

2022

Reconciliation of net income to Adjusted EBITDA and Distributable Cash Flow(a):

 

 

 

 

 

 

 

Net income

$

1,047

 

 

$

1,322

 

 

$

3,727

 

 

$

4,431

 

Interest expense, net of interest capitalized

 

632

 

 

 

577

 

 

 

1,892

 

 

 

1,714

 

Impairment losses and other

 

1

 

 

 

86

 

 

 

12

 

 

 

386

 

Income tax expense

 

77

 

 

 

82

 

 

 

256

 

 

 

159

 

Depreciation, depletion and amortization

 

1,107

 

 

 

1,030

 

 

 

3,227

 

 

 

3,104

 

Non-cash compensation expense

 

35

 

 

 

27

 

 

 

99

 

 

 

88

 

Gains on interest rate derivatives

 

(32

)

 

 

(60

)

 

 

(47

)

 

 

(303

)

Unrealized (gains) losses on commodity risk management activities

 

107

 

 

 

(76

)

 

 

182

 

 

 

(130

)

Inventory valuation adjustments (Sunoco LP)

 

(141

)

 

 

40

 

 

 

(113

)

 

 

(81

)

Equity in earnings of unconsolidated affiliates

 

(103

)

 

 

(68

)

 

 

(286

)

 

 

(186

)

Adjusted EBITDA related to unconsolidated affiliates

 

182

 

 

 

147

 

 

 

514

 

 

 

409

 

Non-operating litigation-related loss(b)

 

625

 

 

 

 

 

 

625

 

 

 

 

Other, net

 

4

 

 

 

(19

)

 

 

8

 

 

 

65

 

Adjusted EBITDA (consolidated)

 

3,541

 

 

 

3,088

 

 

 

10,096

 

 

 

9,656

 

Adjusted EBITDA related to unconsolidated affiliates

 

(182

)

 

 

(147

)

 

 

(514

)

 

 

(409

)

Distributable cash flow from unconsolidated affiliates

 

131

 

 

 

102

 

 

 

364

 

 

 

270

 

Interest expense, net of interest capitalized

 

(632

)

 

 

(577

)

 

 

(1,892

)

 

 

(1,714

)

Preferred unitholders’ distributions

 

(129

)

 

 

(118

)

 

 

(376

)

 

 

(353

)

Current income tax expense

 

(25

)

 

 

(31

)

 

 

(69

)

 

 

(1

)

Transaction-related income taxes(c)

 

 

 

 

 

 

 

 

 

 

(42

)

Maintenance capital expenditures

 

(202

)

 

 

(247

)

 

 

(601

)

 

 

(527

)

Other, net

 

11

 

 

 

5

 

 

 

21

 

 

 

17

 

Distributable Cash Flow (consolidated)

 

2,513

 

 

 

2,075

 

 

 

7,029

 

 

 

6,897

 

Distributable Cash Flow attributable to Sunoco LP (100%)

 

(181

)

 

 

(195

)

 

 

(514

)

 

 

(496

)

Distributions from Sunoco LP

 

43

 

 

 

41

 

 

 

130

 

 

 

124

 

Distributable Cash Flow attributable to USAC (100%)

 

(71

)

 

 

(55

)

 

 

(201

)

 

 

(161

)

Distributions from USAC

 

25

 

 

 

25

 

 

 

73

 

 

 

73

 

Distributable Cash Flow attributable to noncontrolling interests in other non-wholly-owned consolidated subsidiaries

 

(345

)

 

 

(315

)

 

 

(983

)

 

 

(926

)

Distributable Cash Flow attributable to the partners of Energy Transfer

 

1,984

 

 

 

1,576

 

 

 

5,534

 

 

 

5,511

 

Transaction-related adjustments

 

2

 

 

 

5

 

 

 

14

 

 

 

26

 

Distributable Cash Flow attributable to the partners of Energy Transfer, as adjusted

$

1,986

 

 

$

1,581

 

 

$

5,548

 

 

$

5,537

 

Distributions to partners:

 

 

 

 

 

 

 

Limited Partners

$

983

 

 

$

818

 

 

$

2,923

 

 

 

2,145

 

General Partner

 

1

 

 

 

1

 

 

 

3

 

 

 

2

 

Total distributions to be paid to partners

$

984

 

 

$

819

 

 

$

2,926

 

 

$

2,147

 

Common Units outstanding – end of period

 

3,145.1

 

 

 

3,088.0

 

 

 

3,145.1

 

 

 

3,088.0

 

(a)

Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures used by industry analysts, investors, lenders and rating agencies to assess the financial performance and the operating results of Energy Transfer’s fundamental business activities and should not be considered in isolation or as a substitute for net income, income from operations, cash flows from operating activities or other GAAP measures.

 

 

There are material limitations to using measures such as Adjusted EBITDA and Distributable Cash Flow, including the difficulty associated with using any such measure as the sole measure to compare the results of one company to another, and the inability to analyze certain significant items that directly affect a company’s net income or loss or cash flows. In addition, our calculations of Adjusted EBITDA and Distributable Cash Flow may not be consistent with similarly titled measures of other companies and should be viewed in conjunction with measures that are computed in accordance with GAAP, such as operating income, net income and cash flow from operating activities.

 

 

Definition of Adjusted EBITDA

 

 

We define Adjusted EBITDA as total partnership earnings before interest, taxes, depreciation, depletion, amortization and other non-cash items, such as non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, inventory valuation adjustments, non-cash impairment charges, losses on extinguishments of debt and other non-operating income or expense items, as well as certain non-recurring gains and losses. Inventory adjustments that are excluded from the calculation of Adjusted EBITDA represent only the changes in lower of cost or market reserves on inventory that is carried at last-in, first-out (“LIFO”). These amounts are unrealized valuation adjustments applied to Sunoco LP’s fuel volumes remaining in inventory at the end of the period.

 

 

Adjusted EBITDA reflects amounts for unconsolidated affiliates based on the same recognition and measurement methods used to record equity in earnings of unconsolidated affiliates. Adjusted EBITDA related to unconsolidated affiliates excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliates, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliates. We do not control our unconsolidated affiliates; therefore, we do not control the earnings or cash flows of such affiliates. The use of Adjusted EBITDA or Adjusted EBITDA related to unconsolidated affiliates as an analytical tool should be limited accordingly.

 

 

Adjusted EBITDA is used by management to determine our operating performance and, along with other financial and volumetric data, as internal measures for setting annual operating budgets, assessing financial performance of our numerous business locations, as a measure for evaluating targeted businesses for acquisition and as a measurement component of incentive compensation.

 

 

Definition of Distributable Cash Flow

 

 

We define Distributable Cash Flow as net income, adjusted for certain non-cash items, less distributions to preferred unitholders and maintenance capital expenditures. Non-cash items include depreciation, depletion and amortization, non-cash compensation expense, amortization included in interest expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, inventory valuation adjustments, non-cash impairment charges, losses on extinguishments of debt, and deferred income taxes. For unconsolidated affiliates, Distributable Cash Flow reflects the Partnership’s proportionate share of the investee’s distributable cash flow.

 

 

Distributable Cash Flow is used by management to evaluate our overall performance. Our partnership agreement requires us to distribute all available cash, and Distributable Cash Flow is calculated to evaluate our ability to fund distributions through cash generated by our operations.

 

 

On a consolidated basis, Distributable Cash Flow includes 100% of the Distributable Cash Flow of Energy Transfer’s consolidated subsidiaries. However, to the extent that noncontrolling interests exist among our subsidiaries, the Distributable Cash Flow generated by our subsidiaries may not be available to be distributed to our partners. In order to reflect the cash flows available for distributions to our partners, we have reported Distributable Cash Flow attributable to partners, which is calculated by adjusting Distributable Cash Flow (consolidated), as follows:

 

 

  • For subsidiaries with publicly traded equity interests, Distributable Cash Flow (consolidated) includes 100% of Distributable Cash Flow attributable to such subsidiary, and Distributable Cash Flow attributable to our partners includes distributions to be received by the parent company with respect to the periods presented.
  • For consolidated joint ventures or similar entities, where the noncontrolling interest is not publicly traded, Distributable Cash Flow (consolidated) includes 100% of Distributable Cash Flow attributable to such subsidiaries, but Distributable Cash Flow attributable to partners reflects only the amount of Distributable Cash Flow of such subsidiaries that is attributable to our ownership interest.

 

 

For Distributable Cash Flow attributable to partners, as adjusted, certain transaction-related adjustments and non-recurring expenses that are included in net income are excluded.

 

(b)

Non-operating litigation-related loss recognized in the three and nine months ended September 30, 2023 represents the estimated contingent loss associated with a recent adverse ruling. This non-recurring, non-operating loss has been excluded from the Partnership’s calculation of Adjusted EBITDA.

 

(c)

For the three months ended September 30, 2022, the amount reflected for transaction-related income taxes was related to an amended return from a previous transaction.

ENERGY TRANSFER LP AND SUBSIDIARIES

SUMMARY ANALYSIS OF QUARTERLY RESULTS BY SEGMENT

(Tabular dollar amounts in millions)

(unaudited)

 

 

Three Months Ended

September 30,

 

2023

 

2022

Segment Adjusted EBITDA:

 

 

 

Intrastate transportation and storage

$

244

 

$

301

Interstate transportation and storage

 

491

 

 

409

Midstream

 

631

 

 

868

NGL and refined products transportation and services

 

1,076

 

 

634

Crude oil transportation and services

 

706

 

 

461

Investment in Sunoco LP

 

257

 

 

276

Investment in USAC

 

130

 

 

109

All other

 

6

 

 

30

Adjusted EBITDA (consolidated)

$

3,541

 

$

3,088

The following analysis of segment operating results includes a measure of segment margin. Segment margin is a non-GAAP financial measure and is presented herein to assist in the analysis of segment operating results and particularly to facilitate an understanding of the impacts that changes in sales revenues have on the segment performance measure of Segment Adjusted EBITDA. Segment margin is similar to the GAAP measure of gross margin, except that segment margin excludes charges for depreciation, depletion and amortization. Among the GAAP measures reported by the Partnership, the most directly comparable measure to segment margin is Segment Adjusted EBITDA; a reconciliation of segment margin to Segment Adjusted EBITDA is included in the following tables for each segment where segment margin is presented.

In addition, for certain segments, the following sections include information on the components of segment margin by sales type, which components are included in order to provide additional disaggregated information to facilitate the analysis of segment margin and Segment Adjusted EBITDA. For example, these components include transportation margin, storage margin and other margin. These components of segment margin are calculated consistent with the calculation of segment margin; therefore, these components also exclude charges for depreciation, depletion and amortization.

Intrastate Transportation and Storage

 

 

Three Months Ended

September 30,

 

2023

 

2022

Natural gas transported (BBtu/d)

 

15,123

 

 

 

14,878

 

Revenues

$

973

 

 

$

2,383

 

Cost of products sold

 

664

 

 

 

1,994

 

Segment margin

 

309

 

 

 

389

 

Unrealized losses on commodity risk management activities

 

14

 

 

 

12

 

Operating expenses, excluding non-cash compensation expense

 

(71

)

 

 

(93

)

Selling, general and administrative expenses, excluding non-cash compensation expense

 

(13

)

 

 

(12

)

Adjusted EBITDA related to unconsolidated affiliates

 

6

 

 

 

5

 

Other

 

(1

)

 

 

 

Segment Adjusted EBITDA

$

244

 

 

$

301

 

Transported volumes increased primarily due to increased utilization on our Texas intrastate assets.

Segment Adjusted EBITDA. For the three months ended September 30, 2023 compared to the same period last year, Segment Adjusted EBITDA related to our intrastate transportation and storage segment decreased due to the net impacts of the following:

  • a decrease of $74 million in realized natural gas sales and other primarily due to lower pipeline optimization; and
  • a decrease of $40 million in retained fuel revenues related to lower natural gas prices; partially offset by
  • an increase of $28 million in storage margin primarily due to favorable storage optimization;
  • a decrease of $22 million in operating expenses primarily due to a $21 million decrease in cost of fuel consumption from lower natural gas prices and a $2 million decrease due to lower utility pricing; and
  • an increase of $9 million in transportation fees primarily due to new contracts on our Texas system and Haynesville assets.

Interstate Transportation and Storage

 

 

Three Months Ended

September 30,

 

2023

 

2022

Natural gas transported (BBtu/d)

 

16,237

 

 

 

14,157

 

Natural gas sold (BBtu/d)

 

40

 

 

 

28

 

Revenues

$

571

 

 

$

549

 

Cost of products sold

 

2

 

 

 

3

 

Segment margin

 

569

 

 

 

546

 

Operating expenses, excluding non-cash compensation, amortization, accretion and other non-cash expenses

 

(178

)

 

 

(219

)

Selling, general and administrative expenses, excluding non-cash compensation, amortization and accretion expenses

 

(30

)

 

 

(37

)

Adjusted EBITDA related to unconsolidated affiliates

 

129

 

 

 

106

 

Other

 

1

 

 

 

13

 

Segment Adjusted EBITDA

$

491

 

 

$

409

 

Transported volumes increased primarily due to our Gulf Run system being placed in service in December 2022, as well as more capacity sold and higher utilization on our Transwestern, Rover, Panhandle and Trunkline systems due to increased demand.

Segment Adjusted EBITDA. For the three months ended September 30, 2023 compared to the same period last year, Segment Adjusted EBITDA related to our interstate transportation and storage segment increased due to the net impacts of the following:

  • an increase of $23 million in segment margin primarily due to a $44 million increase resulting from our Gulf Run system being placed in service in December 2022, as well as a $28 million increase in transportation revenue from several of our interstate pipelines due to higher contracted volumes and higher interruptible utilization. These increases were partially offset by a $23 million decrease due to lower rates on our Panhandle system resulting from a FERC order in a rate case and a $27 million decrease primarily due to lower operational gas sales resulting from lower prices;
  • a decrease of $41 million in operating expenses primarily due to a decrease from the revaluation of system gas;
  • a decrease of $7 million in selling, general and administrative expenses primarily due to lower employee-related costs and professional fees; and
  • an increase of $23 million in Adjusted EBITDA related to unconsolidated affiliates primarily due to an increase from our Midcontinent Express Pipeline joint venture due to capacity sold at higher rates; partially offset by
  • a decrease of $12 million in other items primarily due to the recognition in the prior period of amounts related to a shipper bankruptcy.

Midstream

 

 

Three Months Ended

September 30,

 

2023

 

2022

Gathered volumes (BBtu/d)

 

19,825

 

 

 

19,107

 

NGLs produced (MBbls/d)

 

869

 

 

 

814

 

Equity NGLs (MBbls/d)

 

42

 

 

 

43

 

Revenues

$

2,777

 

 

$

4,871

 

Cost of products sold

 

1,808

 

 

 

3,678

 

Segment margin

 

969

 

 

 

1,193

 

Operating expenses, excluding non-cash compensation expense

 

(294

)

 

 

(275

)

Selling, general and administrative expenses, excluding non-cash compensation expense

 

(50

)

 

 

(55

)

Adjusted EBITDA related to unconsolidated affiliates

 

5

 

 

 

5

 

Other

 

1

 

 

 

 

Segment Adjusted EBITDA

$

631

 

 

$

868

 

Gathered volumes and NGL production increased primarily due to increased producer activity in most regions.

Segment Adjusted EBITDA. For the three months ended September 30, 2023 compared to the same period last year, Segment Adjusted EBITDA related to our midstream segment decreased due to the net impacts of the following:

  • a decrease of $224 million in non-fee-based margin due to lower natural gas prices of $157 million and lower NGL prices of $68 million; and
  • an increase of $19 million in operating expenses due to a $9 million increase in employee costs, a $7 million increase in maintenance, repairs and projects, including trucking and compression needs coupled with pricing increases, and a $6 million increase in ad valorem taxes due to growth and acquisitions; partially offset by
  • a decrease of $5 million in selling, general and administrative expenses primarily due to lower insurance costs.

NGL and Refined Products Transportation and Services

 

 

Three Months Ended

September 30,

 

2023

 

2022

NGL transportation volumes (MBbls/d)

 

2,161

 

 

 

1,892

 

Refined products transportation volumes (MBbls/d)

 

551

 

 

 

543

 

NGL and refined products terminal volumes (MBbls/d)

 

1,475

 

 

 

1,287

 

NGL fractionation volumes (MBbls/d)

 

1,029

 

 

 

940

 

Revenues

$

5,260

 

 

$

6,075

 

Cost of products sold

 

4,034

 

 

 

5,044

 

Segment margin

 

1,226

 

 

 

1,031

 

Unrealized (gains) losses on commodity risk management activities

 

84

 

 

 

(126

)

Operating expenses, excluding non-cash compensation expense

 

(235

)

 

 

(265

)

Selling, general and administrative expenses, excluding non-cash compensation expense

 

(33

)

 

 

(33

)

Adjusted EBITDA related to unconsolidated affiliates

 

34

 

 

 

27

 

Segment Adjusted EBITDA

$

1,076

 

 

$

634

 

NGL transportation and terminal volumes increased primarily due to higher volumes from the Permian region, on our Mariner East pipeline system and on our export pipelines into our Nederland Terminal.

The increase in transportation volumes and the commissioning of our eighth fractionator in August 2023 also led to higher fractionated volumes at our Mont Belvieu, Texas fractionation facility.

Segment Adjusted EBITDA. For the three months ended September 30, 2023 compared to the same period last year, Segment Adjusted EBITDA related to our NGL and refined products transportation and services segment increased due to the net impacts of the following:

  • an increase of $233 million in marketing margin (excluding unrealized gains and losses on commodity risk management activities) primarily due to gains during the 2023 period from the optimization of hedged NGL and refined product inventories as compared to losses from this activity during the 2022 period. Marketing margin also benefited from intrasegment charges of $7 million which are fully offset within our transportation margin;
  • an increase of $86 million in transportation margin primarily due to a $41 million increase resulting from higher y-grade throughput and contractual rate escalations on our Texas pipeline system, a $26 million increase resulting from higher throughput on our Mariner East pipeline system, a $15 million increase from higher exported volumes feeding into our Nederland Terminal, a $13 million increase from higher throughput and contractual rate escalations on our refined product pipelines and a $2 million increase from higher throughput on our Mariner West pipeline. These increases were partially offset by intrasegment charges of $7 million and $6 million which are fully offset within our marketing and fractionation margins, respectively;
  • an increase of $56 million in terminal services margin primarily due to a $34 million increase from our Marcus Hook Terminal due to contractual rate escalations and higher throughput, an $18 million increase from higher export volumes loaded at our Nederland Terminal and a $3 million increase due to increased tank leases at our Eagle Point terminal;
  • a decrease of $30 million in operating expenses primarily due to a decrease in gas and power utility costs;
  • an increase of $24 million in fractionators and refinery services margin due to a $17 million increase resulting from higher volumes, a $6 million intrasegment charge which is fully offset in our transportation margin and a $2 million increase from a more favorable pricing environment impacting our refinery services business;
  • an increase of $7 million in Adjusted EBITDA related to unconsolidated affiliates primarily due to higher volumes from certain joint venture pipelines; and
  • an increase of $6 million in storage margin primarily due to a $10 million increase in fees generated from exported volumes. This increase was partially offset by a $3 million decrease from the timing of cavern withdrawals.

Crude Oil Transportation and Services

 

Three Months Ended

September 30,

 

2023

 

2022

Crude transportation volumes (MBbls/d)

 

5,640

 

 

 

4,575

 

Crude terminal volumes (MBbls/d)

 

3,548

 

 

 

3,088

 

Revenues

$

7,289

 

 

$

6,416

 

Cost of products sold

 

6,392

 

 

 

5,627

 

Segment margin

 

897

 

 

 

789

 

Unrealized losses on commodity risk management activities

 

14

 

 

 

2

 

Operating expenses, excluding non-cash compensation expense

 

(183

)

 

 

(176

)

Selling, general and administrative expenses, excluding non-cash compensation expense

 

(29

)

 

 

(155

)

Adjusted EBITDA related to unconsolidated affiliates

 

6

 

 

 

1

 

Other

 

1

 

 

 

 

Segment Adjusted EBITDA

$

706

 

 

$

461

 

Crude transportation volumes were higher on our Texas pipeline system due to higher Permian crude oil production, higher gathered volumes and contributions from assets acquired in 2023. Volumes on our Bakken Pipeline were also higher, driven by continuing crude oil production growth in the Bakken. Volumes on our Bayou Bridge Pipeline were relatively consistent due to continuing strong Gulf Coast refinery demand. Crude terminal volumes were higher due to growth in Permian and Bakken volumes, stronger Gulf Coast refinery utilization and contributions from assets acquired in 2023.

Segment Adjusted EBITDA. For the three months ended September 30, 2023 compared to the same period last year, Segment Adjusted EBITDA related to our crude oil transportation and services segment increased primarily due to the net impacts of the following:

  • an increase of $120 million in segment margin (excluding unrealized gains and losses on commodity risk management activities) primarily due to an $81 million increase from recently acquired assets, a $36 million increase from higher volumes on our Bakken Pipeline and a $33 million increase from higher volumes on our Texas crude pipeline system, partially offset by a $20 million decrease at our Gulf Coast terminals due to timing of oil gain sales in the prior period as well as a $9 million decrease from our crude oil acquisition and marketing business primarily due to lower refined product sales margins and higher affiliate fees paid due to higher volumes transported;
  • a decrease of $126 million in selling, general and administrative expenses primarily due to a charge related to a legal matter in the prior period; and
  • an increase of $5 million in Adjusted EBITDA related to unconsolidated affiliates due to assets acquired; partially offset by
  • an increase of $7 million in operating expenses primarily due to a $21 million increase from assets acquired, partially offset by a $9 million decrease in ad valorem taxes.

Investment in Sunoco LP

 

 

Three Months Ended

September 30,

 

2023

 

2022

Revenues

$

6,320

 

 

$

6,594

 

Cost of products sold

 

5,793

 

 

 

6,261

 

Segment margin

 

527

 

 

 

333

 

Unrealized (gains) losses on commodity risk management activities

 

(1

)

 

 

23

 

Operating expenses, excluding non-cash compensation expense

 

(110

)

 

 

(98

)

Selling, general and administrative, excluding non-cash compensation expense

 

(28

)

 

 

(29

)

Adjusted EBITDA related to unconsolidated affiliates

 

2

 

 

 

2

 

Inventory fair value adjustments

 

(141

)

 

 

40

 

Other, net

 

8

 

 

 

5

 

Segment Adjusted EBITDA

$

257

 

 

$

276

 

The Investment in Sunoco LP segment reflects the consolidated results of Sunoco LP.

Segment Adjusted EBITDA. For the three months ended September 30, 2023 compared to the same period last year, Segment Adjusted EBITDA related to our investment in Sunoco LP segment decreased primarily due to the net impacts of the following:

  • a decrease in the profit on motor fuel sales of $22 million primarily due to a 7% decrease in profit per gallon sold, partially offset by an increase in gallons sold; and
  • an increase in operating costs of $11 million, including other operating expense, general and administrative expense and lease expense, primarily due to higher costs as a result of acquisitions of refined product terminals and the transmix processing and terminal facility; partially offset by
  • an increase in non-motor fuel sales and lease profit of $12 million primarily due to increased throughput and storage margin from recent acquisitions and increased rental income.

Investment in USAC

 

 

Three Months Ended

September 30,

 

2023

 

2022

Revenues

$

217

 

 

$

179

 

Cost of products sold

 

35

 

 

 

28

 

Segment margin

 

182

 

 

 

151

 

Operating expenses, excluding non-cash compensation expense

 

(39

)

 

 

(31

)

Selling, general and administrative expenses, excluding non-cash compensation expense

 

(13

)

 

 

(11

)

Segment Adjusted EBITDA

$

130

 

 

$

109

 

The Investment in USAC segment reflects the consolidated results of USAC.

Segment Adjusted EBITDA. For the three months ended September 30, 2023 compared to the same period last year, Segment Adjusted EBITDA related to our investment in USAC segment increased primarily due to the net impacts of the following:

  • an increase of $31 million in segment margin primarily due to higher revenue-generating horsepower as a result of increased demand for compression services, higher market-based rates on newly deployed and redeployed compression units and higher average rates on existing customer contracts; partially offset by
  • an increase of $8 million in operating expenses primarily due to higher employee costs associated with increased revenue-generating horsepower as well as higher parts and service costs.

All Other

 

 

Three Months Ended

September 30,

 

2023

 

2022

Revenues

$

444

 

 

$

1,084

 

Cost of products sold

 

457

 

 

 

1,052

 

Segment margin

 

(13

)

 

 

32

 

Unrealized (gains) losses on commodity risk management activities

 

(4

)

 

 

13

 

Operating expenses, excluding non-cash compensation expense

 

(8

)

 

 

(17

)

Selling, general and administrative expenses, excluding non-cash compensation expense

 

(13

)

 

 

(11

)

Adjusted EBITDA related to unconsolidated affiliates

 

2

 

 

 

2

 

Other and eliminations

 

42

 

 

 

11

 

Segment Adjusted EBITDA

$

6

 

 

$

30

 

For the three months ended September 30, 2023 compared to the same period last year, Segment Adjusted EBITDA related to our all other segment decreased primarily due to the net impacts of the following:

  • a decrease of $11 million due to the sale of Energy Transfer Canada in 2022;
  • a decrease of $10 million due to less favorable power trading market conditions; and
  • a decrease of $7 million from our dual drive compression business due to lower gas prices and increased competition; partially offset by
  • an increase of $5 million due to higher margin from sales in our compressor business.

ENERGY TRANSFER LP AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION ON LIQUIDITY

(Dollars in millions)

(unaudited)

The table below provides information on our revolving credit facility. We also have consolidated subsidiaries with revolving credit facilities which are not included in this table.

 

 

Facility Size

 

Funds Available at

September 30, 2023

 

Maturity Date

Five-Year Revolving Credit Facility

$

5,000

 

$

2,121

 

April 11, 2027

In October 2023, we repaid borrowings on our revolving credit facility with proceeds from the sale of senior notes, as discussed in “Financial Highlights” above.

ENERGY TRANSFER LP AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION ON UNCONSOLIDATED AFFILIATES

(Dollars in millions)

(unaudited)

The table below provides information on an aggregated basis for our unconsolidated affiliates, which are accounted for as equity method investments in the Partnership’s financial statements for the periods presented.

 

 

Three Months Ended

September 30,

 

2023

 

2022

Equity in earnings (losses) of unconsolidated affiliates:

 

 

 

Citrus

$

39

 

$

36

 

MEP

 

21

 

 

(1

)

White Cliffs

 

2

 

 

 

Explorer

 

10

 

 

8

 

Other

 

31

 

 

25

 

Total equity in earnings of unconsolidated affiliates

$

103

 

$

68

 

 

 

 

 

Adjusted EBITDA related to unconsolidated affiliates:

 

 

 

Citrus

$

86

 

$

86

 

MEP

 

30

 

 

8

 

White Cliffs

 

7

 

 

5

 

Explorer

 

16

 

 

12

 

Other

 

43

 

 

36

 

Total Adjusted EBITDA related to unconsolidated affiliates

$

182

 

$

147

 

 

 

 

 

Distributions received from unconsolidated affiliates:

 

 

 

Citrus

$

53

 

$

52

 

MEP

 

25

 

 

4

 

White Cliffs

 

7

 

 

5

 

Explorer

 

10

 

 

6

 

Other

 

27

 

 

27

 

Total distributions received from unconsolidated affiliates

$

122

 

$

94

 

ENERGY TRANSFER LP AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION ON NON-WHOLLY-OWNED JOINT VENTURE SUBSIDIARIES

(Dollars in millions)

(unaudited)

The table below provides information on an aggregated basis for our non-wholly-owned joint venture subsidiaries, which are reflected on a consolidated basis in our financial statements. The table below excludes Sunoco LP and USAC, which are non-wholly-owned subsidiaries that are publicly traded.

 

 

Three Months Ended

September 30,

 

2023

 

2022

Adjusted EBITDA of non-wholly-owned subsidiaries (100%) (a)

$

679

 

$

622

Our proportionate share of Adjusted EBITDA of non-wholly-owned subsidiaries (b)

 

326

 

 

297

 

 

 

 

Distributable Cash Flow of non-wholly-owned subsidiaries (100%) (c)

$

653

 

$

593

Our proportionate share of Distributable Cash Flow of non-wholly-owned subsidiaries (d)

 

308

 

 

278

Below is our ownership percentage of certain non-wholly-owned subsidiaries:

Non-wholly-owned subsidiary:

Energy Transfer Percentage

Ownership (e)

Bakken Pipeline

36.4 %

Bayou Bridge

60.0 %

Maurepas

51.0 %

Ohio River System

75.0 %

Permian Express Partners

87.7 %

Red Bluff Express

70.0 %

Rover

32.6 %

Others

various

(a)

Adjusted EBITDA of non-wholly-owned subsidiaries reflects the total Adjusted EBITDA of our non-wholly-owned subsidiaries on an aggregated basis. This is the amount included in our consolidated non-GAAP measure of Adjusted EBITDA.

(b)

Our proportionate share of Adjusted EBITDA of non-wholly-owned subsidiaries reflects the amount of Adjusted EBITDA of such subsidiaries (on an aggregated basis) that is attributable to our ownership interest.

(c)

Distributable Cash Flow of non-wholly-owned subsidiaries reflects the total Distributable Cash Flow of our non-wholly-owned subsidiaries on an aggregated basis.

(d)

Our proportionate share of Distributable Cash Flow of non-wholly-owned subsidiaries reflects the amount of Distributable Cash Flow of such subsidiaries (on an aggregated basis) that is attributable to our ownership interest. This is the amount included in our consolidated non-GAAP measure of Distributable Cash Flow attributable to the partners of Energy Transfer.

(e)

Our ownership reflects the total economic interest held by us and our subsidiaries. In some cases, this percentage comprises ownership interests held in (or by) multiple entities. In addition to the ownership reflected in the table above, the Partnership also owned a 51% interest in Energy Transfer Canada until August 2022.

 

Contacts

Energy Transfer

Investor Relations:

Bill Baerg, Brent Ratliff, Lyndsay Hannah, 214-981-0795

or

Media Relations:

Vicki Granado, 214-840-5820

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Sunnyvale.com & California Media Partners, LLC. All rights reserved.