According to the company’s website press release on May 2, 2023, Energy Transfer LP (NYSE:ET) (“Energy Transfer” or the “Partnership”) reported financial results for the quarter ended March 31, 2023.
Energy Transfer reported net income attributable to partners for the three months ended March 31, 2023 of $1.11 billion. For the three months ended March 31, 2023, net income per common unit (basic and diluted) was $0.32 per unit.
Adjusted EBITDA for the three months ended March 31, 2023 was $3.43 billion compared to $3.34 billion for the three months ended March 31, 2022.
Distributable Cash Flow attributable to partners, as adjusted, for the three months ended March 31, 2023 was $2.01 billion compared to $2.08 billion for the three months ended March 31, 2022.
Growth capital expenditures in the first quarter of 2023 were $407 million while maintenance capital expenditures were $149 million.
2023 Outlook Update
- Given Energy Transfer’s acquisition of Lotus Midstream Operations, LLC, as well as continued increasing demand, the Partnership now expects Adjusted EBITDA for the full year 2023 to be between $13.05 billion and $13.45 billion (previously $12.9 billion to $13.3 billion). The Partnership expects its 2023 growth capital expenditures to be approximately $2.0 billion.
Operational Highlights
- During the first quarter of 2023, Energy Transfer’s assets continued to reach new milestones, with volumes increasing across all segments compared to the same period last year.
- NGL fractionation volumes were up 18%.
- NGL transportation volumes were up 13%, setting a new Partnership record.
- Midstream gathered volumes increased 14%, setting a new Partnership record.
- Intrastate natural gas transportation volumes were up 5%.
- Interstate natural gas transportation volumes were up 11%, setting a new Partnership record.
- Crude terminal volumes were up 6%.
- Energy Transfer exported record NGL volumes out of the Nederland Terminal and record ethane volumes out of the Marcus Hook Terminal in the first quarter.
- During the first quarter, Energy Transfer completed the optimization project on Oasis Pipeline, adding more than 60,000 Mcf/d of natural gas takeaway capacity out of the Permian Basin.
Strategic Highlights
- Today, the Partnership completed the acquisition of Lotus Midstream Operations, LLC for total consideration of $900 million in cash and approximately 44.5 million newly issued common units.
- The acquired assets add approximately 3,000 miles of crude oil gathering and transportation pipelines that extend from Southeast New Mexico across the Permian Basin of West Texas to Cushing, Oklahoma.
- Integration of operations and assets is now underway, including the construction of a 30-mile pipeline and terminal optimization project that is expected to enhance connectivity within the Permian Basin and provide a direct link between Midland and Cushing.
Financial Highlights
- In April 2023, Energy Transfer announced a quarterly cash distribution of $0.3075 per common unit ($1.23 annualized) for the quarter ended March 31, 2023.
- Increased 2023 outlook for Adjusted EBITDA and capital investments to reflect addition of Lotus Midstream and growing strategic asset base.
- In the first quarter of 2023, the Partnership redeemed $2.15 billion aggregate principal amount of its senior notes. For the quarter, Energy Transfer reduced its long-term debt by approximately $1.0 billion.
- As of March 31, 2023, the Partnership’s revolving credit facility had an aggregate $3.01 billion of available borrowing capacity.
- For the three months ended March 31, 2023, the Partnership invested approximately $407 million on growth capital expenditures.
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 30% of the Partnership’s consolidated Adjusted EBITDA for the three months ended March 31, 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 Tuesday, May 2, 2023 to discuss its first 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 approximately 120,000 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 a growth-oriented Delaware limited partnership that 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 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
Investor Relations:
Bill Baerg, Brent Ratliff, Lyndsay Hannah, 214-981-0795
or
Media Relations:
Vicki Granado, 214-840-5820
