Energy Transfer LP (NYSE:ET) (“Energy Transfer” or the
“Partnership”) today reported financial results for the quarter
ended September 30, 2024.
Energy Transfer reported net income attributable to partners for
the three months ended September 30, 2024 of $1.18 billion. For the
three months ended September 30, 2024, net income per common unit
(basic) was $0.33.
Adjusted EBITDA for the three months ended September 30, 2024
was $3.96 billion compared to $3.54 billion for the three months
ended September 30, 2023.
Distributable Cash Flow attributable to partners, as adjusted,
for the three months ended September 30, 2024 was $1.99 billion, an
increase of $4 million from the three months ended September 30,
2023.
Growth capital expenditures in the third quarter of 2024 were
$724 million, while maintenance capital expenditures were $359
million.
Operational Highlights
- With the addition of new organic growth projects and
acquisitions, volumes on Energy Transfer’s assets continued to
increase during the third quarter of 2024.
- Crude oil transportation volumes were up 25%, setting a new
Partnership record.
- Crude oil exports were up 49%.
- Midstream gathered volumes and produced volumes were up 6% and
26%, respectively, setting new Partnership records.
- NGL fractionation volumes were up 12%, setting a new
Partnership record.
- NGL transportation volumes were up 4%, setting a new
Partnership record.
- The Partnership recently completed a 50 MMcf/d expansion to the
Orla East processing plant in the Permian Basin.
- The Partnership also recently completed construction of a
30-mile crude oil pipeline that allows Energy Transfer to transport
approximately 100,000 Bbls/d of crude oil from its terminals in
Midland, Texas to Cushing, Oklahoma.
- Energy Transfer recently approved construction of its ninth
fractionator at Mont Belvieu, which will have a capacity of 165,000
Bbls/d. Frac IX is expected to be in service in the fourth quarter
of 2026 and will increase the Partnership’s total fractionation
capacity at Mont Belvieu to more than 1.3 million Bbls/d.
Strategic Highlights
- In July 2024, Energy Transfer completed the acquisition of WTG
Midstream Holdings LLC (“WTG Midstream”), which added approximately
6,000 miles of complementary gas gathering pipelines and extended
Energy Transfer’s network in the Midland Basin. The transaction
also added nine gas processing plants with a total capacity of
approximately 1.5 Bcf/d, and an additional 200 MMcf/d processing
plant is currently under construction.
- In July 2024, Energy Transfer and Sunoco LP formed a joint
venture combining their respective crude oil and produced water
gathering assets in the Permian Basin. Energy Transfer serves as
the operator of the joint venture.
- With forecasts suggesting that natural gas fueled power demand
will increase significantly in the future, Energy Transfer is
seeing increasing opportunities to provide natural gas to power
plants and data centers spread across its natural gas footprint,
from Arizona to Florida and from Texas to Michigan.
Financial Highlights
- In October 2024, Energy Transfer announced a cash distribution
of $0.3225 per common unit ($1.29 annualized) for the quarter ended
September 30, 2024.
- As of September 30, 2024, the Partnership’s revolving credit
facility had $3.34 billion available for future borrowings.
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, 2024. 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 6, 2024
to discuss its third quarter 2024 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 more than 130,000 miles of pipeline and
associated energy infrastructure. Energy Transfer’s strategic
network spans 44 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 21% of the outstanding common units of Sunoco LP
(NYSE: SUN), and the general partner interests and approximately
39% 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 leading energy infrastructure
and fuel distribution master limited partnership operating in over
40 U.S. states, Puerto Rico, Europe, and Mexico. SUN's midstream
operations include an extensive network of approximately 14,000
miles of pipeline and over 100 terminals. This critical
infrastructure complements SUN's fuel distribution operations,
which serve approximately 7,400 Sunoco and partner branded
locations and additional independent dealers and commercial
customers. SUN’s general partner is owned by Energy Transfer LP
(NYSE: ET). 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 (In millions)
(unaudited)
September 30,
2024
December 31,
2023
ASSETS
Current assets
$
13,336
$
12,433
Property, plant and equipment, net
95,012
85,351
Investments in unconsolidated
affiliates
3,268
3,097
Lease right-of-use assets, net
836
826
Other non-current assets, net
1,965
1,733
Intangible assets, net
6,102
6,239
Goodwill
3,910
4,019
Total assets
$
124,429
$
113,698
LIABILITIES AND EQUITY
Current liabilities
$
12,371
$
11,277
Long-term debt, less current
maturities
58,995
51,380
Non-current derivative liabilities
—
4
Non-current operating lease
liabilities
742
778
Deferred income taxes
4,110
3,931
Other non-current liabilities
1,613
1,611
Commitments and contingencies
Redeemable noncontrolling interests
418
778
Equity:
Limited Partners:
Preferred Unitholders
3,892
6,459
Common Unitholders
31,308
30,197
General Partner
(2
)
(2
)
Accumulated other comprehensive income
42
28
Total partners’ capital
35,240
36,682
Noncontrolling interests
10,940
7,257
Total equity
46,180
43,939
Total liabilities and equity
$
124,429
$
113,698
ENERGY
TRANSFER LP AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In millions,
except per unit data) (unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
REVENUES
$
20,772
$
20,739
$
63,130
$
58,054
COSTS AND EXPENSES:
Cost of products sold
15,612
16,059
47,818
44,761
Operating expenses
1,358
1,105
3,723
3,224
Depreciation, depletion and
amortization
1,324
1,107
3,791
3,227
Selling, general and administrative
297
234
889
700
Impairment losses
—
1
50
12
Total costs and expenses
18,591
18,506
56,271
51,924
OPERATING INCOME
2,181
2,233
6,859
6,130
OTHER INCOME (EXPENSE):
Interest expense, net of interest
capitalized
(828
)
(632
)
(2,318
)
(1,892
)
Equity in earnings of unconsolidated
affiliates
102
103
285
286
Loss on extinguishment of debt
—
—
(11
)
—
Gain (loss) on interest rate
derivatives
(6
)
32
6
47
Non-operating litigation-related loss
—
(625
)
—
(625
)
Gain on sale of Sunoco LP West Texas
assets
—
—
598
—
Other, net
74
13
104
37
INCOME BEFORE INCOME TAX EXPENSE
1,523
1,124
5,523
3,983
Income tax expense
89
77
405
256
NET INCOME
1,434
1,047
5,118
3,727
Less: Net income attributable to
noncontrolling interests
238
451
1,337
1,080
Less: Net income attributable to
redeemable noncontrolling interests
13
12
44
39
NET INCOME ATTRIBUTABLE TO PARTNERS
1,183
584
3,737
2,608
General Partner’s interest in net
income
1
—
3
2
Preferred Unitholders’ interest in net
income
67
118
294
340
Loss on redemption of preferred units
—
—
54
—
Common Unitholders’ interest in net
income
$
1,115
$
466
$
3,386
$
2,266
NET INCOME PER COMMON UNIT:
Basic
$
0.33
$
0.15
$
1.00
$
0.73
Diluted
$
0.32
$
0.15
$
0.99
$
0.72
WEIGHTED AVERAGE NUMBER OF UNITS
OUTSTANDING:
Basic
3,415.2
3,144.0
3,384.9
3,122.3
Diluted
3,441.2
3,167.7
3,410.7
3,145.9
ENERGY
TRANSFER LP AND SUBSIDIARIES SUPPLEMENTAL INFORMATION (Dollars and units in
millions) (unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Reconciliation of net income to
Adjusted EBITDA and Distributable Cash Flow(a):
Net income
$
1,434
$
1,047
$
5,118
$
3,727
Interest expense, net of interest
capitalized
828
632
2,318
1,892
Impairment losses
—
1
50
12
Income tax expense
89
77
405
256
Depreciation, depletion and
amortization
1,324
1,107
3,791
3,227
Non-cash compensation expense
37
35
113
99
(Gain) loss on interest rate
derivatives
6
(32
)
(6
)
(47
)
Unrealized (gain) loss on commodity risk
management activities
(53
)
107
50
182
Loss on extinguishment of debt
—
—
11
—
Inventory valuation adjustments (Sunoco
LP)
197
(141
)
99
(113
)
Equity in earnings of unconsolidated
affiliates
(102
)
(103
)
(285
)
(286
)
Adjusted EBITDA related to unconsolidated
affiliates
181
182
522
514
Non-operating litigation-related
loss(b)
—
625
—
625
Gain on sale of Sunoco LP West Texas
assets
—
—
(598
)
—
Other, net
18
4
11
8
Adjusted EBITDA (consolidated)
3,959
3,541
11,599
10,096
Adjusted EBITDA related to unconsolidated
affiliates(c)
(181
)
(182
)
(522
)
(514
)
Distributable cash flow from
unconsolidated affiliates(c)
127
131
373
364
Interest expense, net of interest
capitalized
(828
)
(632
)
(2,318
)
(1,892
)
Preferred unitholders’ distributions
(72
)
(129
)
(290
)
(376
)
Current income tax expense
20
(25
)
(241
)
(69
)
Transaction-related income taxes(d)
(18
)
—
181
—
Maintenance capital expenditures
(392
)
(202
)
(785
)
(601
)
Other, net
16
11
72
21
Distributable Cash Flow (consolidated)
2,631
2,513
8,069
7,029
Distributable Cash Flow attributable to
Sunoco LP(c)
(290
)
(181
)
(647
)
(514
)
Distributions from Sunoco LP
60
43
182
130
Distributable Cash Flow attributable to
USAC (100%)
(87
)
(71
)
(259
)
(201
)
Distributions from USAC
25
25
73
73
Distributable Cash Flow attributable to
noncontrolling interests in other non-wholly owned consolidated
subsidiaries
(364
)
(345
)
(1,052
)
(983
)
Distributable Cash Flow attributable to
the partners of Energy Transfer
1,975
1,984
6,366
5,534
Transaction-related adjustments
15
2
19
14
Distributable Cash Flow attributable to
the partners of Energy Transfer, as adjusted
$
1,990
$
1,986
$
6,385
$
5,548
Distributions to partners:
Limited Partners
$
1,104
$
983
$
3,269
$
2,923
General Partner
1
1
3
3
Total distributions to be paid to
partners
$
1,105
$
984
$
3,272
$
2,926
Common Units outstanding – end of
period
3,423.7
3,145.1
3,423.7
3,145.1
(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 either 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
flows 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. Inventory valuation 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 investees’ 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 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)
These amounts exclude Sunoco LP’s Adjusted
EBITDA and distributable cash flow related to its investment in the
Permian joint venture, which amounts are eliminated in the Energy
Transfer consolidation.
(d)
For the three and nine months ended
September 30, 2024, the amount reflected for transaction-related
income taxes reflects current income tax expense recognized by
Sunoco LP in connection with its April 2024 sale of convenience
stores in West Texas, New Mexico and Oklahoma.
ENERGY
TRANSFER LP AND SUBSIDIARIES SUMMARY ANALYSIS OF QUARTERLY RESULTS
BY SEGMENT (Tabular dollar amounts in millions)
(unaudited)
Three Months Ended
September 30,
2024
2023
Segment Adjusted EBITDA:
Intrastate transportation and storage
$
329
$
244
Interstate transportation and storage
460
491
Midstream
816
631
NGL and refined products transportation
and services
1,012
1,076
Crude oil transportation and services
768
706
Investment in Sunoco LP
456
257
Investment in USAC
146
130
All other
(28
)
6
Adjusted EBITDA (consolidated)
$
3,959
$
3,541
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.
Intrastate Transportation and
Storage
Three Months Ended
September 30,
2024
2023
Natural gas transported (BBtu/d)
13,214
15,123
Withdrawals from storage natural gas
inventory (BBtu)
2,325
—
Revenues
$
678
$
973
Cost of products sold
272
664
Segment margin
406
309
Unrealized (gains) losses on commodity
risk management activities
(11
)
14
Operating expenses, excluding non-cash
compensation expense
(61
)
(71
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(11
)
(13
)
Adjusted EBITDA related to unconsolidated
affiliates
6
6
Other
—
(1
)
Segment Adjusted EBITDA
$
329
$
244
Transported volumes of gas on our Texas
intrastate pipelines decreased primarily due to less third-party
transportation and decreased gas production from the Haynesville
area. Transported volumes reported above exclude volumes
attributable to purchases and sales of gas for our pipelines’ own
accounts and the optimization of any unused capacity.
Segment Adjusted EBITDA. For the three
months ended September 30, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our intrastate
transportation and storage segment increased due to the net impact
of the following:
- an increase of $100 million in realized natural gas sales and
other primarily due to higher pipeline optimization from physical
sales; and
- a decrease of $10 million in operating expenses primarily due
to a change related to fuel consumption that is offset in cost of
products sold in 2024; partially offset by
- a decrease of $13 million in storage margin primarily due to
the timing of financial gains;
- a decrease of $11 million in retained fuel margin primarily due
to a change related to fuel consumption that is offset in operating
expenses in 2024; and
- a decrease of $4 million in transportation fees primarily due
to a contract expiration on our Louisiana system.
Interstate Transportation and
Storage
Three Months Ended
September 30,
2024
2023
Natural gas transported (BBtu/d)
16,616
16,237
Natural gas sold (BBtu/d)
39
40
Revenues
$
575
$
571
Cost of products sold
3
2
Segment margin
572
569
Operating expenses, excluding non-cash
compensation, amortization, accretion and other non-cash
expenses
(203
)
(178
)
Selling, general and administrative
expenses, excluding non-cash compensation, amortization and
accretion expenses
(34
)
(30
)
Adjusted EBITDA related to unconsolidated
affiliates
125
129
Other
—
1
Segment Adjusted EBITDA
$
460
$
491
Transported volumes increased primarily
due to more capacity sold and higher utilization on our Panhandle,
Trunkline and Gulf Run systems due to increased demand.
Segment Adjusted EBITDA. For the three
months ended September 30, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our interstate
transportation and storage segment decreased due to the net impact
of the following:
- an increase of $25 million in operating expenses primarily due
to a $10 million one-time benefit recorded in the third quarter of
2023 which reduced operating expense, a $6 million increase in
maintenance project costs, a $3 million increase from the
revaluation of system gas and an aggregate increase of $5 million
in employee costs and office expense;
- an increase of $4 million in selling, general and
administrative expenses primarily due to higher professional fees
and higher overhead costs; and
- a decrease of $4 million in Adjusted EBITDA related to
unconsolidated affiliates primarily due to lower revenue on our
Midcontinent Express Pipeline joint venture; partially offset
by
- an increase of $3 million in segment margin primarily due to a
$23 million increase resulting from a rate adjustment in 2023
related to the conclusion of a rate case on our Panhandle system,
partially offset by an $11 million decrease due to lower
interruptible utilization, a $7 million decrease in transportation
revenue from several of our interstate pipeline systems due to
lower contracted volumes at lower rates and a $5 million decrease
due to lower market prices on the sale of operational gas.
Midstream
Three Months Ended
September 30,
2024
2023
Gathered volumes (BBtu/d)
21,027
19,825
NGLs produced (MBbls/d)
1,094
869
Equity NGLs (MBbls/d)
65
42
Revenues
$
2,758
$
2,777
Cost of products sold
1,551
1,808
Segment margin
1,207
969
Operating expenses, excluding non-cash
compensation expense
(411
)
(294
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(57
)
(50
)
Adjusted EBITDA related to unconsolidated
affiliates
6
5
Other
71
1
Segment Adjusted EBITDA
$
816
$
631
Gathered volumes increased primarily due
to recently acquired assets and higher volumes in the Permian
region. NGL production increased primarily due to recently acquired
assets and increased Permian plant utilization.
Segment Adjusted EBITDA. For the three
months ended September 30, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our midstream segment
increased due to the net impact of the following:
- an increase of $254 million in segment margin primarily due to
recently acquired assets and higher volumes in the Permian region;
and
- an increase of $70 million in other income due to the
recognition of proceeds from a business interruption claim;
partially offset by
- an increase of $117 million in operating expenses primarily due
to a $108 million increase related to recent acquisitions and
assets placed in service and a $9 million increase in employee
costs;
- a decrease of $16 million in segment margin due to lower
natural gas prices; and
- an increase of $7 million in selling, general and
administrative expenses primarily due to higher insurance
expenses.
NGL and Refined Products Transportation
and Services
Three Months Ended
September 30,
2024
2023
NGL transportation volumes (MBbls/d)
2,237
2,161
Refined products transportation volumes
(MBbls/d)
574
551
NGL and refined products terminal volumes
(MBbls/d)
1,505
1,475
NGL fractionation volumes (MBbls/d)
1,152
1,029
Revenues
$
5,853
$
5,260
Cost of products sold
4,527
4,034
Segment margin
1,326
1,226
Unrealized (gains) losses on commodity
risk management activities
(64
)
84
Operating expenses, excluding non-cash
compensation expense
(243
)
(235
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(42
)
(33
)
Adjusted EBITDA related to unconsolidated
affiliates
35
34
Segment Adjusted EBITDA
$
1,012
$
1,076
NGL transportation volumes increased
primarily due to higher volumes from the Permian region, on our
Mariner East pipeline system and on our Gulf Coast export
pipelines.
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 NGL
Complex.
Segment Adjusted EBITDA. For the three
months ended September 30, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our NGL and refined
products transportation and services segment decreased due to the
net impact of the following:
- a decrease of $70 million in marketing margin (excluding
unrealized gains and losses on commodity risk management
activities) primarily due to $100 million in gains recorded in the
third quarter of 2023 from the optimization of hedged NGL and
refined product inventories compared to $30 million in gains
recorded for the third quarter of 2024. This decrease also included
a $2 million decrease in intrasegment margin which is fully offset
within our transportation margin;
- a decrease of $12 million in fractionators and refinery
services margin resulting from a $27 million increase due to higher
volumes and a $2 million increase from our refinery services
business, offset by a $41 million decrease in rates, primarily from
our midstream segment due to lower gas prices and the restructuring
of certain affiliate fractionation agreements;
- an increase of $8 million in operating expenses primarily due
to a $6 million increase in employee costs, a $4 million increase
in ad valorem taxes, a $4 million increase in outside services
expenses and increases totaling $6 million from various other
operating expenses. These increases were partially offset by an $11
million decrease in gas and power utility costs; and
- an increase of $9 million in selling, general and
administrative expenses primarily due to increased costs from
recently acquired assets; partially offset by
- an increase of $25 million in terminal services margin
primarily due to a $15 million increase from higher export volumes
loaded at our Nederland Terminal, an $8 million increase from our
Marcus Hook Terminal due to higher throughput and contractual rate
escalations and a $3 million increase due to higher throughput and
storage at our refined product terminals; and
- an increase of $8 million in transportation margin primarily
due to higher throughput and contractual rate escalations of $19
million on our Mariner East pipeline system and intrasegment
charges of $7 million and $2 million which were fully offset within
our fractionators and marketing margins, respectively. These
increases were partially offset by decreased revenue on our Texas
y-grade pipeline system, despite higher volumes, primarily due to
the restructuring of certain affiliate transportation
agreements.
Crude Oil Transportation and
Services
Three Months Ended
September 30,
2024
2023
Crude oil transportation volumes
(MBbls/d)
7,025
5,640
Crude oil terminal volumes (MBbls/d)
3,533
3,548
Revenues
$
7,309
$
7,289
Cost of products sold
6,297
6,392
Segment margin
1,012
897
Unrealized losses on commodity risk
management activities
20
14
Operating expenses, excluding non-cash
compensation expense
(231
)
(183
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(39
)
(29
)
Adjusted EBITDA related to unconsolidated
affiliates
6
6
Other
—
1
Segment Adjusted EBITDA
$
768
$
706
Crude oil transportation volumes were
higher due to continued growth on our gathering systems and
contributions from recently acquired assets. Crude terminal volumes
were lower due to lower refinery-driven throughput at our Gulf
Coast terminals, partially offset by higher export
volumes.
Segment Adjusted EBITDA. For the three
months ended September 30, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our crude oil
transportation and services segment increased due to the net impact
of the following:
- an increase of $121 million in segment margin (excluding
unrealized gains and losses on commodity risk management
activities) primarily due to a $150 million increase from recently
acquired assets and contributions from the recently formed Permian
joint venture with Sunoco LP; this increase was partially offset by
a $21 million decrease from our crude oil acquisition and marketing
business primarily due to lower refined product prices and an $11
million decrease from existing pipeline assets; partially offset
by
- an increase of $48 million in operating expenses from recently
acquired and contributed assets, as well as increases in ad valorem
taxes, employee costs, outside services and various volume-driven
expenses; and
- an increase of $10 million in selling, general and
administrative expenses primarily due to an increase of $7 million
from recently acquired assets and related corporate allocations,
and higher employee expenses.
Investment in Sunoco LP
Three Months Ended
September 30,
2024
2023
Revenues
$
5,751
$
6,320
Cost of products sold
5,327
5,793
Segment margin
424
527
Unrealized (gains) losses on commodity
risk management activities
1
(1
)
Operating expenses, excluding non-cash
compensation expense
(168
)
(110
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(52
)
(28
)
Adjusted EBITDA related to unconsolidated
affiliates
47
2
Inventory fair value adjustments
197
(141
)
Other, net
7
8
Segment Adjusted EBITDA
$
456
$
257
The Investment in Sunoco LP segment
reflects the consolidated results of Sunoco LP.
Segment Adjusted EBITDA. For the three
months ended September 30, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our investment in Sunoco
LP segment increased primarily due to the net impact of the
following:
- an increase in segment margin (excluding unrealized gains and
losses on commodity risk management activities and inventory
valuation adjustments) of $237 million primarily related to the
acquisitions of NuStar and Zenith European terminals; and
- a $45 million increase in Adjusted EBITDA related to
unconsolidated affiliates due to the formation of the Permian joint
venture; partially offset by
- a $58 million increase in operating expenses and a $24 million
increase in selling, general and administrative expenses primarily
related to the acquisitions of NuStar and Zenith European
terminals.
Investment in USAC
Three Months Ended
September 30,
2024
2023
Revenues
$
240
$
217
Cost of products sold
38
35
Segment margin
202
182
Operating expenses, excluding non-cash
compensation expense
(43
)
(39
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(13
)
(13
)
Segment Adjusted EBITDA
$
146
$
130
The Investment in USAC segment reflects
the consolidated results of USAC.
Segment Adjusted EBITDA. For the three
months ended September 30, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our investment in USAC
segment increased due to the net impact of the following:
- an increase of $20 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 $4 million in operating expenses primarily due
to an increase in employee costs associated with increased
revenue-generating horsepower.
All Other
Three Months Ended
September 30,
2024
2023
Revenues
$
379
$
444
Cost of products sold
369
457
Segment margin
10
(13
)
Unrealized (gains) losses on commodity
risk management activities
1
(4
)
Operating expenses, excluding non-cash
compensation expense
(20
)
(8
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(23
)
(13
)
Adjusted EBITDA related to unconsolidated
affiliates
2
2
Other and eliminations
2
42
Segment Adjusted EBITDA
$
(28
)
$
6
Segment Adjusted EBITDA. For the three
months ended September 30, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our all other segment
decreased due to the net impact of the following:
- a decrease of $49 million related to intersegment eliminations
primarily driven by the formation of the Permian joint venture,
which is consolidated in our crude oil transportation and services
segment and also reflected as an unconsolidated affiliate in our
investment in Sunoco LP segment; partially offset by
- an increase of $11 million in our natural gas marketing
business due to higher gains from gas trading and storage
positions; and
- an increase of $7 million from our compressor packaging
business.
ENERGY
TRANSFER LP AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ON LIQUIDITY (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, 2024
Maturity Date
Five-Year Revolving Credit Facility
$ 5,000
$ 3,336
April 11, 2027
ENERGY
TRANSFER LP AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ON UNCONSOLIDATED
AFFILIATES (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,
2024
2023
Equity in earnings of unconsolidated
affiliates:
Citrus
$
41
$
39
MEP
16
21
White Cliffs
4
2
Explorer
11
10
SESH
12
8
Other
18
23
Total equity in earnings of unconsolidated
affiliates
$
102
$
103
Adjusted EBITDA related to
unconsolidated affiliates:
Citrus
$
89
$
86
MEP
25
30
White Cliffs
9
7
Explorer
17
16
SESH
13
12
Other
28
31
Total Adjusted EBITDA related to
unconsolidated affiliates
$
181
$
182
Distributions received from
unconsolidated affiliates:
Citrus
$
—
$
53
MEP
16
25
White Cliffs
9
7
Explorer
11
10
SESH
15
8
Other
20
19
Total distributions received from
unconsolidated affiliates
$
71
$
122
ENERGY
TRANSFER LP AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ON NON-WHOLLY OWNED JOINT
VENTURE SUBSIDIARIES (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,
2024
2023
Adjusted EBITDA of non-wholly owned
subsidiaries (100%) (a)
$
764
$
679
Our proportionate share of Adjusted EBITDA
of non-wholly owned subsidiaries (b)
400
326
Distributable Cash Flow of non-wholly
owned subsidiaries (100%) (c)
$
745
$
653
Our proportionate share of Distributable
Cash Flow of non-wholly owned subsidiaries (d)
381
308
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106197626/en/
Energy Transfer Investor Relations: Bill Baerg,
Brent Ratliff, Lyndsay Hannah, 214-981-0795 or Media
Relations: Vicki Granado, 214-840-5820
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