Energy Transfer LP (NYSE:ET) (“Energy Transfer” or the
“Partnership”) today reported financial results for the quarter and
year ended December 31, 2024.
Energy Transfer reported net income attributable to partners for
the three months ended December 31, 2024 of $1.08 billion. For the
three months ended December 31, 2024, net income per common unit
(basic) was $0.29.
Adjusted EBITDA for the three months ended December 31, 2024 was
$3.88 billion compared to $3.60 billion for the same period last
year, an increase of 8%.
Distributable Cash Flow attributable to partners, as adjusted,
for the three months ended December 31, 2024 was $1.98 billion.
Growth capital expenditures in the fourth quarter of 2024 were
$1.22 billion while maintenance capital expenditures were $309
million.
2025 Outlook
- Energy Transfer expects its 2025 Adjusted EBITDA to range
between $16.1 billion and $16.5 billion.
- For 2025, the Partnership expects its growth capital
expenditures to be approximately $5.0 billion. Maintenance capital
expenditures for 2025 are expected to be approximately $1.1
billion.
Operational Highlights
- Energy Transfer’s volumes continued to grow during the fourth
quarter of 2024.
- Crude oil transportation volumes were up 15%.
- NGL transportation volumes were up 5%.
- NGL exports were up more than 2%.
- Midstream gathered volumes increased 2%.
- Interstate natural gas transportation volumes were up 2%.
- In December 2024, Energy Transfer completed the initial phase
of the Sabina 2 pipeline conversion from Mont Belvieu to Nederland,
which increased the capacity for multiple products from 25,000
barrels per day to 40,000 barrels per day.
- In November 2024, Energy Transfer completed the optimization of
the Grey Wolf processing plant in the Permian Basin, which
increased the capacity of the plant from 200 MMcf/d to 250
MMcf/d.
- Energy Transfer also recently commissioned the first of eight,
10-megawatt natural gas-fired electric generation facilities to
support the Partnership’s operations in Texas.
Strategic Highlights
- Yesterday, Energy Transfer announced that it has entered into a
long-term agreement with Cloudburst Data Centers, Inc.
(“CloudBurst”) to provide natural gas to CloudBurst’s flagship
AI-focused data center development. Per the agreement, Energy
Transfer would utilize its Oasis Pipeline to provide natural gas to
CloudBurst’s Next-Gen Data Center campus in central Texas, subject
to CloudBurst reaching a final investment decision with its
customer.
- In December 2024, Energy Transfer announced that it has reached
a positive final investment decision for the construction of the
Hugh Brinson Pipeline, an intrastate natural gas pipeline
connecting Permian Basin production to premier markets and trading
hubs in Texas.
- In December 2024, Energy Transfer announced a 20-year LNG Sale
and Purchase Agreement (“SPA”) to supply 2.0 million tonnes of LNG
per annum to Chevron U.S.A. Inc. related to its Lake Charles LNG
project.
- In February 2025, the Partnership approved construction of an
additional processing plant in the Midland Basin. The Mustang Draw
plant will have a capacity of approximately 275 MMcf/d and is
expected to be in service in the first half of 2026.
Financial Highlights
- In January 2025, Energy Transfer announced a quarterly cash
distribution of $0.3250 per common unit ($1.30 annualized) for the
quarter ended December 31, 2024, which is an increase of 3.2%
compared to the fourth quarter of 2023.
- As of December 31, 2024, the Partnership’s revolving credit
facility had an aggregate $2.21 billion of available borrowing
capacity.
- For the three months ended December 31, 2024, the Partnership
invested approximately $1.22 billion 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 one-third of the
Partnership’s consolidated Adjusted EBITDA for the three months or
full year ended December 31, 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 Tuesday, February 11, 2025
to discuss its fourth quarter 2024 results and provide an update on
the Partnership, including its outlook for 2025. 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, including Adjusted EBITDA, and impact current
projections, including capital expenditures, 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)
December 31,
2024
December 31,
2023
ASSETS
Current assets
$
14,202
$
12,433
Property, plant and equipment, net
95,212
85,351
Investments in unconsolidated
affiliates
3,266
3,097
Lease right-of-use assets, net
809
826
Other non-current assets, net
2,017
1,733
Intangible assets, net
5,971
6,239
Goodwill
3,903
4,019
Total assets
$
125,380
$
113,698
LIABILITIES AND EQUITY
Current liabilities
$
12,656
$
11,277
Long-term debt, less current
maturities
59,752
51,380
Non-current derivative liabilities
—
4
Non-current operating lease
liabilities
730
778
Deferred income taxes
4,190
3,931
Other non-current liabilities
1,618
1,611
Commitments and contingencies
Redeemable noncontrolling interests
417
778
Equity:
Limited Partners:
Preferred Unitholders
3,852
6,459
Common Unitholders
31,195
30,197
General Partner
(2
)
(2
)
Accumulated other comprehensive income
73
28
Total partners’ capital
35,118
36,682
Noncontrolling interests
10,899
7,257
Total equity
46,017
43,939
Total liabilities and equity
$
125,380
$
113,698
ENERGY
TRANSFER LP AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In millions,
except per unit data) (unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
REVENUES
$
19,541
$
20,532
$
82,671
$
78,586
COSTS AND EXPENSES:
Cost of products sold
14,157
15,780
61,975
60,541
Operating expenses
1,441
1,144
5,164
4,368
Depreciation, depletion and
amortization
1,374
1,158
5,165
4,385
Selling, general and administrative
288
285
1,177
985
Impairment losses and other
2
—
52
12
Total costs and expenses
17,262
18,367
73,533
70,291
OPERATING INCOME
2,279
2,165
9,138
8,295
OTHER INCOME (EXPENSE):
Interest expense, net of interest
capitalized
(807
)
(686
)
(3,125
)
(2,578
)
Equity in earnings of unconsolidated
affiliates
94
97
379
383
Gains on extinguishments of debt
(1
)
2
(12
)
2
Gains (losses) on interest rate
derivatives
—
(11
)
6
36
Non-operating litigation related loss
—
(2
)
—
(627
)
Gain (loss) on sale of Sunoco LP West
Texas assets
(12
)
—
586
—
Other, net
30
49
134
86
INCOME BEFORE INCOME TAX EXPENSE
1,583
1,614
7,106
5,597
Income tax expense
136
47
541
303
NET INCOME
1,447
1,567
6,565
5,294
Less: Net income attributable to
noncontrolling interests
355
219
1,692
1,299
Less: Net income attributable to
redeemable noncontrolling interests
15
21
59
60
NET INCOME ATTRIBUTABLE TO PARTNERS
1,077
1,327
4,814
3,935
General Partner’s interest in net
income
1
1
4
3
Preferred Unitholders’ interest in net
income
68
123
362
463
Loss on redemption of preferred units
—
—
54
—
Common Unitholders’ interest in net
income
$
1,008
$
1,203
$
4,394
$
3,469
NET INCOME PER COMMON UNIT:
Basic
$
0.29
$
0.37
$
1.29
$
1.10
Diluted
$
0.29
$
0.37
$
1.28
$
1.09
WEIGHTED AVERAGE NUMBER OF UNITS
OUTSTANDING:
Basic
3,425.6
3,278.6
3,395.1
3,161.7
Diluted
3,449.9
3,295.3
3,420.6
3,177.2
ENERGY
TRANSFER LP AND SUBSIDIARIES SUPPLEMENTAL INFORMATION (Dollars and units in
millions) (unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Reconciliation of net income to
Adjusted EBITDA and Distributable Cash Flow (a):
Net income
$
1,447
$
1,567
$
6,565
$
5,294
Interest expense, net of interest
capitalized
807
686
3,125
2,578
Impairment losses and other
2
—
52
12
Income tax expense
136
47
541
303
Depreciation, depletion and
amortization
1,374
1,158
5,165
4,385
Non-cash compensation expense
38
31
151
130
(Gains) losses on interest rate
derivatives
—
11
(6
)
(36
)
Unrealized (gains) losses on commodity
risk management activities
6
(185
)
56
(3
)
(Gains) losses on extinguishments of
debt
1
(2
)
12
(2
)
Inventory valuation adjustments (Sunoco
LP)
(13
)
227
86
114
Equity in earnings of unconsolidated
affiliates
(94
)
(97
)
(379
)
(383
)
Adjusted EBITDA related to unconsolidated
affiliates
170
177
692
691
Non-operating litigation related loss
—
2
—
627
Gain on sale of Sunoco LP West Texas
assets
12
—
(586
)
—
Other, net
(2
)
(20
)
9
(12
)
Adjusted EBITDA (consolidated)
3,884
3,602
15,483
13,698
Adjusted EBITDA related to unconsolidated
affiliates (b)
(170
)
(177
)
(692
)
(691
)
Distributable cash flow from
unconsolidated affiliates (b)
113
121
486
485
Interest expense, net of interest
capitalized
(807
)
(686
)
(3,125
)
(2,578
)
Preferred unitholders’ distributions
(71
)
(135
)
(361
)
(511
)
Current income tax expense
(24
)
(31
)
(265
)
(100
)
Transaction-related income taxes (c)
(2
)
—
179
—
Maintenance capital expenditures
(376
)
(259
)
(1,161
)
(860
)
Other, net
16
20
90
41
Distributable Cash Flow (consolidated)
2,563
2,455
10,634
9,484
Distributable Cash Flow attributable to
Sunoco LP
(254
)
(145
)
(946
)
(659
)
Distributions from Sunoco LP
63
43
245
173
Distributable Cash Flow attributable to
USAC (100%)
(96
)
(80
)
(355
)
(281
)
Distributions from USAC
24
24
97
97
Distributable Cash Flow attributable to
noncontrolling interests in other non-wholly owned consolidated
subsidiaries
(326
)
(369
)
(1,335
)
(1,352
)
Distributable Cash Flow attributable to
the partners of Energy Transfer
1,974
1,928
8,340
7,462
Transaction-related adjustments (d)
4
102
23
116
Distributable Cash Flow attributable to
the partners of Energy Transfer, as adjusted
$
1,978
$
2,030
$
8,363
$
7,578
Distributions to partners:
Limited Partners
$
1,115
$
1,061
$
4,384
$
3,984
General Partner
1
1
4
3
Total distributions to be paid to
partners
$
1,116
$
1,062
$
4,388
$
3,987
Common Units outstanding – end of
period
3,431.1
3,367.5
3,431.1
3,367.5
(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)
These amounts exclude Sunoco LP’s Adjusted
EBITDA and distributable cash flow related to its investment in the
ET-S Permian joint venture, which amounts are eliminated in the
Energy Transfer consolidation.
(c)
For the year ended December 31, 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.
(d)
For the three months and year ended
December 31, 2023, transaction-related adjustments includes $49
million of Distributable Cash Flow attributable to the operations
of Crestwood for October 1, 2023 through the acquisition date,
which represents amounts distributable to Energy Transfer’s common
unitholders (including the holders of the common units issued in
the Crestwood acquisition) with respect to the fourth quarter 2023
distribution.
ENERGY
TRANSFER LP AND SUBSIDIARIES SUMMARY
ANALYSIS OF QUARTERLY RESULTS BY SEGMENT (Tabular dollar
amounts in millions) (unaudited)
Three Months Ended
December 31,
2024
2023
Segment Adjusted EBITDA:
Intrastate transportation and storage
$
263
$
242
Interstate transportation and storage
493
541
Midstream
705
674
NGL and refined products transportation
and services
1,108
1,042
Crude oil transportation and services
760
775
Investment in Sunoco LP
439
236
Investment in USAC
155
139
All other
(39
)
(47
)
Adjusted EBITDA (consolidated)
$
3,884
$
3,602
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
December 31,
2024
2023
Natural gas transported (BBtu/d)
13,145
14,229
Withdrawals from storage natural gas
inventory (BBtu)
10,350
6,440
Revenues
$
820
$
892
Cost of products sold
426
497
Segment margin
394
395
Unrealized gains on commodity risk
management activities
(59
)
(78
)
Operating expenses, excluding non-cash
compensation expense
(66
)
(72
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(13
)
(13
)
Adjusted EBITDA related to unconsolidated
affiliates
6
6
Other
1
4
Segment Adjusted EBITDA
$
263
$
242
Transported volumes of gas on our Texas
and Oklahoma 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 December 31, 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 $13 million in realized natural gas sales and
other primarily due to higher pipeline optimization from physical
sales; and
- an increase of $11 million in storage margin primarily due to
the timing of physical and financial gains.
Interstate Transportation and
Storage
Three Months Ended
December 31,
2024
2023
Natural gas transported (BBtu/d)
17,026
16,651
Natural gas sold (BBtu/d)
46
31
Revenues
$
600
$
620
Cost of products sold
3
1
Segment margin
597
619
Operating expenses, excluding non-cash
compensation, amortization, accretion and other non-cash
expenses
(191
)
(179
)
Selling, general and administrative
expenses, excluding non-cash compensation, amortization and
accretion expenses
(30
)
(26
)
Adjusted EBITDA related to unconsolidated
affiliates
116
122
Other
1
5
Segment Adjusted EBITDA
$
493
$
541
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 December 31, 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:
- a decrease of $22 million in segment margin primarily due to a
$13 million decrease in parking revenue and a $5 million decrease
in interruptible utilization;
- an increase of $12 million in operating expenses primarily due
to an aggregate $8 million increase in employee related costs,
outside services, materials and office expense, a $3 million
increase in maintenance project costs and a $2 million increase in
ad valorem taxes and revaluation of system gas;
- an increase of $4 million in selling, general and
administrative expenses primarily due to higher professional fees
and higher allocated costs;
- a decrease of $6 million in Adjusted EBITDA related to
unconsolidated affiliates primarily due to a $7 million decrease
from our Citrus joint venture due to higher operating expenses,
partially offset by a $3 million increase from our Southeast Supply
Header joint venture due to higher contracted volumes; and
- a decrease of $4 million in other primarily due to the prior
period recognition of certain amounts related to a shipper
bankruptcy.
Midstream
Three Months Ended
December 31,
2024
2023
Gathered volumes (BBtu/d)
20,690
20,322
NGLs produced (MBbls/d)
1,134
976
Equity NGLs (MBbls/d)
59
49
Revenues
$
3,160
$
2,407
Cost of products sold
1,910
1,379
Segment margin
1,250
1,028
Operating expenses, excluding non-cash
compensation expense
(495
)
(314
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(55
)
(47
)
Adjusted EBITDA related to unconsolidated
affiliates
5
6
Other
—
1
Segment Adjusted EBITDA
$
705
$
674
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 December 31, 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 $228 million in segment margin primarily due to
recently acquired assets and higher volumes in the Permian region;
partially offset by
- a decrease of $6 million in segment margin due to lower natural
gas prices of $7 million, partially offset by higher NGL prices of
$1 million;
- an increase of $181 million in operating expenses primarily due
to a $138 million increase related to recent acquisitions and
assets placed in service, a $15 million increase in environmental
reserves, a $12 million increase in ad valorem and prior period
sales taxes accruals and a $12 million increase in materials and
projects;
- an increase of $8 million in selling, general and
administrative expenses primarily due to higher corporate
allocations, insurance claims and recently acquired assets;
and
- a decrease of $1 million in Adjusted EBITDA related to
unconsolidated affiliates due to the impact of the Partnership’s
consolidation of Aqua-ETC Water Services, LLC, which previously had
been an equity method investment until October 2024.
NGL and Refined Products Transportation
and Services
Three Months Ended
December 31,
2024
2023
NGL transportation volumes (MBbls/d)
2,262
2,162
Refined products transportation volumes
(MBbls/d)
570
552
NGL and refined products terminal volumes
(MBbls/d)
1,465
1,446
NGL fractionation volumes (MBbls/d)
1,141
1,137
Revenues
$
6,356
$
6,039
Cost of products sold
5,048
4,684
Segment margin
1,308
1,355
Unrealized (gains) losses on commodity
risk management activities
60
(72
)
Operating expenses, excluding non-cash
compensation expense
(254
)
(225
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(42
)
(51
)
Adjusted EBITDA related to unconsolidated
affiliates
36
34
Other
—
1
Segment Adjusted EBITDA
$
1,108
$
1,042
NGL transportation and terminal 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 December 31, 2024 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 impact of the following:
- an increase of $45 million in transportation margin primarily
due to higher throughput and contractual rate escalations on our
Gulf Coast and Mariner East pipeline systems. These increases were
partially offset by a $5 million decrease from the timing of
third-party deficiency payments on our Northeast region
pipelines;
- an increase of $38 million in terminal services margin
primarily due to a $34 million increase in fees from loading
volumes for export at our Nederland and Marcus Hook terminals and a
$3 million increase due to higher throughput and storage at our
refined product terminals;
- an increase of $18 million in marketing margin (excluding
unrealized gains and losses on commodity risk management
activities) primarily due to higher gains during 2024 from the
optimization of hedged NGL and refined product inventories;
and
- a decrease of $9 million in selling, general and administrative
expenses primarily due to a one-time charge related to regulatory
expenses in the prior period; partially offset by
- an increase of $29 million in operating expenses primarily due
to an $8 million increase in outside services expenses, a $7
million increase in ad valorem taxes, a $6 million increase in
employee costs, a $5 million increase resulting from the timing of
project related expenses, a $3 million increase in office expenses
and increases totaling $6 million from various other operating
expenses. These increases were partially offset by a $7 million
decrease in gas and power utility costs;
- a decrease of $10 million in fractionators and refinery
services margin resulting from a decrease in rates, primarily from
our midstream segment due to the restructuring of certain affiliate
fractionation agreements; and
- a decrease of $5 million in storage margin primarily due to the
timing of third-party deficiency payments.
Crude Oil Transportation and
Services
Three Months Ended
December 31,
2024
2023
Crude oil transportation volumes
(MBbls/d)
6,831
5,949
Crude oil terminal volumes (MBbls/d)
3,316
3,430
Revenues
$
6,220
$
7,214
Cost of products sold
5,207
6,213
Segment margin
1,013
1,001
Unrealized gains on commodity risk
management activities
(4
)
(13
)
Operating expenses, excluding non-cash
compensation expense
(217
)
(191
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(38
)
(30
)
Adjusted EBITDA related to unconsolidated
affiliates
6
7
Other
—
1
Segment Adjusted EBITDA
$
760
$
775
Crude oil transportation volumes were
higher due to continued growth on our gathering systems, as well as
contributions from recently acquired assets and from assets
contributed upon the recent formation of the ET-S Permian joint
venture with Sunoco LP, partially offset by lower volumes on our
Bakken Pipeline.
Adjusted EBITDA. For the three months
ended December 31, 2024 compared to the same period last year,
Segment Adjusted EBITDA related to our crude oil transportation and
services segment decreased due to the net impact of the
following:
- an increase of $21 million in segment margin (excluding
unrealized gains and losses on commodity risk management
activities) primarily due to a $99 million increase from recently
acquired assets and assets contributed upon the recent formation of
the ET-S Permian joint venture, partially offset by a $52 million
decrease in transportation revenues from existing assets and a $25
million decrease from our crude oil acquisition and marketing
activities; partially offset by
- an increase of $26 million in operating expenses primarily due
to a $21 million increase from recently acquired assets and assets
contributed upon the recent formation of the ET-S Permian joint
venture, a $3 million increase in outside services, a $2 million
increase in ad valorem taxes, a $2 million increase in employee
costs and various increases in volume-driven expenses; and
- an increase of $8 million in selling, general and
administrative expenses primarily due to an $11 million increase
from recently acquired assets and assets contributed upon the
recent formation of the ET-S Permian joint venture, as well as
higher employee costs.
Investment in Sunoco LP
Three Months Ended
December 31,
2024
2023
Revenues
$
5,269
$
5,641
Cost of products sold
4,644
5,492
Segment margin
625
149
Unrealized (gains) losses on commodity
risk management activities
4
(10
)
Operating expenses, excluding non-cash
compensation expense
(188
)
(110
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(50
)
(30
)
Adjusted EBITDA related to unconsolidated
affiliates
48
2
Inventory fair value adjustments
(13
)
227
Other, net
13
8
Segment Adjusted EBITDA
$
439
$
236
The Investment in Sunoco LP segment
reflects the consolidated results of Sunoco LP.
Segment Adjusted EBITDA. For the three
months ended December 31, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our investment in Sunoco
LP increased due to the net impact of the following:
- an increase of $250 million in segment margin (excluding
unrealized gains and losses on commodity risk management activities
and inventory valuation adjustments) primarily due to the
acquisitions of NuStar and Zenith European terminals; and
- an increase of $46 million in Adjusted EBITDA related to
unconsolidated affiliates due to the formation of the ET-S Permian
joint venture; partially offset by
- an increase of $78 million in operating expenses and $20
million in selling, general and administrative expenses primarily
due to the acquisitions of NuStar and Zenith European
terminals.
Investment in USAC
Three Months Ended
December 31,
2024
2023
Revenues
$
245
$
225
Cost of products sold
36
33
Segment margin
209
192
Operating expenses, excluding non-cash
compensation expense
(41
)
(40
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(12
)
(14
)
Other, net
(1
)
1
Segment Adjusted EBITDA
$
155
$
139
The Investment in USAC segment reflects
the consolidated results of USAC.
Segment Adjusted EBITDA. For the three
months ended December 31, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our investment in USAC
increased 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.
All Other
Three Months Ended
December 31,
2024
2023
Revenues
$
607
$
411
Cost of products sold
602
386
Segment margin
5
25
Unrealized (gains) losses on commodity
risk management activities
5
(11
)
Operating expenses, excluding non-cash
compensation expense
8
(22
)
Selling, general and administrative
expenses, excluding non-cash compensation expense
(19
)
(52
)
Adjusted EBITDA related to unconsolidated
affiliates
2
1
Other and eliminations
(40
)
12
Segment Adjusted EBITDA
$
(39
)
$
(47
)
Segment Adjusted EBITDA. For the three
months ended December 31, 2024 compared to the same period last
year, Segment Adjusted EBITDA related to our all other segment
increased due to the net impact of the following:
- an increase of $48 million due to higher M&A expenses in
the prior period; and
- an increase of $15 million in our natural gas marketing
business due to increased sales following the WTG Midstream
acquisition; partially offset by
- a decrease of $45 million primarily due to intersegment
eliminations of Sunoco LP’s 32.5% share of the ET-S 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;
- a decrease of $5 million in our dual drive compression business
due to lower gas prices in 2024; and
- a decrease of $3 million from the timing of our compressor
sales in our compressor 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
December 31, 2024
Maturity Date
Five-Year Revolving Credit Facility
$
5,000
$
2,211
April 11, 2027
(1)
(1)
Following the Partnership’s exercise of
its option to extend the maturity date on December 18, 2024, the
credit facility allows for unsecured borrowings up to $4.84 billion
until April 11, 2029.
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
December 31,
2024
2023
Equity in earnings of unconsolidated
affiliates:
Citrus
$
31
$
36
MEP
16
19
White Cliffs
5
5
Explorer
8
10
SESH
13
9
Other
21
18
Total equity in earnings of unconsolidated
affiliates
$
94
$
97
Adjusted EBITDA related to
unconsolidated affiliates:
Citrus
$
77
$
85
MEP
25
27
White Cliffs
10
10
Explorer
12
15
SESH
14
13
Other
32
27
Total Adjusted EBITDA related to
unconsolidated affiliates
$
170
$
177
Distributions received from
unconsolidated affiliates:
Citrus
$
35
$
12
MEP
23
26
White Cliffs
8
7
Explorer
7
9
SESH
12
8
Other
23
23
Total distributions received from
unconsolidated affiliates
$
108
$
85
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,
as well as Sunoco LP’s 32.5% interest in the ET-S Permian joint
venture.
Three Months Ended
December 31,
2024
2023
Adjusted EBITDA of non-wholly owned
subsidiaries (100%) (a)
$
634
$
709
Our proportionate share of Adjusted EBITDA
of non-wholly owned subsidiaries (b)
305
334
Distributable Cash Flow of non-wholly
owned subsidiaries (100%) (c)
$
614
$
682
Our proportionate share of Distributable
Cash Flow of non-wholly owned subsidiaries (d)
288
313
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/20250211500994/en/
Investor Relations: Bill Baerg, Brent Ratliff, Lyndsay
Hannah, 214-981-0795
Media Relations: Vicki Granado, 214-840-5820
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