Energy Transfer Reports Fourth Quarter 2021 Results
DALLAS–(BUSINESS WIRE)–Energy Transfer LP (NYSE:ET) (“Energy Transfer” or the “Partnership”) today reported financial results for the quarter and year ended December 31, 2021.
Energy Transfer reported net income attributable to partners for the three months ended December 31, 2021 of $921 million, an increase of $412 million compared to the same period last year. For the three months ended December 31, 2021, net income per limited partner unit (basic and diluted) was $0.29 per unit.
Adjusted EBITDA for the three months ended December 31, 2021 was $2.81 billion compared to $2.59 billion for the same period last year. The improved results were primarily driven by increased NGL transportation and export volumes, higher realized commodity prices, and the Enable acquisition. Energy Transfer’s NGL business also had record transportation and fractionation volumes in the fourth quarter.
Distributable Cash Flow attributable to partners, as adjusted, for the three months ended December 31, 2021 was $1.60 billion compared to $1.36 billion for the same period last year.
Growth capital expenditures in 2021 were $1.40 billion, which was $200 million less than expected due to project deferrals into 2022. Maintenance capital expenditures were $522 million. Looking ahead, Energy Transfer is updating its 2022 growth and maintenance capital expenditures outlook as a result of the recently closed Enable acquisition and rapidly growing demand for midstream infrastructure. The Partnership expects its 2022 growth capital expenditures to range from $1.6 billion to $1.9 billion, which includes the addition of several new capital projects expected to be completed by year end. Maintenance capital expenditures are expected to range between $615 million and $665 million for 2022. Energy Transfer is also providing an outlook for 2022 Adjusted EBITDA which is expected to range between $11.8 billion and $12.2 billion.
Key accomplishments and recent developments:
Operational
- In February 2022, construction of the final phase of the Mariner East project was completed and commissioning is in progress. Energy Transfer’s Mariner East franchise will now include multiple pipelines across Pennsylvania connecting the prolific Marcellus/Utica Basins in the west to markets throughout the state and the broader region, including Energy Transfer’s Marcus Hook terminal on the east coast.
- During the first quarter 2022, construction began on the Gulf Run Pipeline project. The 42-inch pipeline with 1.65 Bcf/d of capacity is expected to be completed by year-end and will provide natural gas transportation between the Haynesville Shale Basin and the gulf coast.
- During the fourth quarter 2021, Phase II of the Cushing South Pipeline project was launched and is expected to nearly double the project’s oil pipeline capacity to 120,000 barrels per day. This project primarily utilizes existing facilities to provide additional connectivity across Energy Transfer’s mid-continent and gulf coast crude oil network.
- In October 2021, Energy Transfer brought online a three million barrel high-rate storage well at its Mont Belvieu facility, which now includes 24 wells with NGL storage capacity of approximately 53 million barrels.
- In the fourth quarter of 2021, Energy Transfer reached its highest ever volume of NGL transportation and fractionation.
- In October 2021, Energy Transfer completed its Permian Bridge project, providing increased connectivity and efficiency between the Partnership’s natural gas gathering and processing assets in the Delaware Basin and its assets in the Midland Basin.
Strategic
- Energy Transfer is evaluating a new Permian Basin natural gas takeaway project that would utilize existing Partnership assets and a new pipeline to connect Permian supply to markets along the gulf coast, including the Houston Ship Channel, Katy, Carthage, and Henry Hub.
- In December 2021, Energy Transfer successfully closed the Enable Midstream Partners, LP (“Enable”) acquisition and integration of combined operations is ongoing. The merger is expected to generate annual run-rate cost efficiencies in excess of $100 million.
- In December 2021, subsequent to the Enable acquisition, the Partnership and its affiliates purchased more than 20 million Energy Transfer common units in connection with a secondary offering executed by one of Enable’s prior sponsors.
- In the fourth quarter of 2021, the Partnership released its Corporate Responsibility Report, which highlights Energy Transfer’s business achievements and safety and risk management and emissions reduction programs.
Financial
- In January 2022, Energy Transfer announced a 15% increase in its quarterly distribution on common units. For the quarter ended December 31, 2021, Energy Transfer will pay a quarterly distribution of $0.175 per common unit ($0.70 annualized). Future increases to the distribution level will be evaluated quarterly with the ultimate goal of returning distributions to the previous level of $0.305 per common unit per quarter ($1.22 annualized) while balancing the Partnership’s leverage target, growth opportunities and unit buybacks.
- During the fourth quarter of 2021, the Partnership reduced outstanding debt by approximately $400 million (excluding debt assumed in the Enable acquisition), utilizing cash from operations. For the full year 2021, Energy Transfer reduced its existing long-term debt by approximately $6.3 billion.
- As of December 31, 2021, the Partnership’s $5.00 billion revolving credit facilities had an aggregate $2.03 billion of available capacity, and the leverage ratio, as defined by its credit agreement, was 3.07x.
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 or full year ended December 31, 2021. 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, February 16, 2022 to discuss its fourth quarter 2021 results and provide an update on the Partnership, including its outlook for 2022. 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 North America, with a strategic footprint 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 28.5 million common units of Sunoco LP (NYSE: SUN), and the general partner interests and 46.1 million 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. 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 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, including future distribution levels and leverage ratio, 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. In addition to the risks and uncertainties previously disclosed, the Partnership has also been, or may in the future be, impacted by new or heightened risks related to the COVID-19 pandemic, and we cannot predict the length and ultimate impact of those risks. 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, 2021 |
|
December 31, 2020 |
||||
|
ASSETS |
|
|
|
||||
|
Current assets |
$ |
10,537 |
|
|
$ |
6,317 |
|
|
|
|
|
|
||||
|
Property, plant and equipment, net |
|
81,607 |
|
|
|
75,107 |
|
|
|
|
|
|
||||
|
Advances to and investments in unconsolidated affiliates |
|
2,947 |
|
|
|
3,060 |
|
|
Lease right-of-use assets, net |
|
838 |
|
|
|
866 |
|
|
Other non-current assets, net |
|
1,645 |
|
|
|
1,657 |
|
|
Intangible assets, net |
|
5,856 |
|
|
|
5,746 |
|
|
Goodwill |
|
2,533 |
|
|
|
2,391 |
|
|
Total assets |
$ |
105,963 |
|
|
$ |
95,144 |
|
|
|
|
|
|
||||
|
LIABILITIES AND EQUITY |
|
|
|
||||
|
Current liabilities (1) |
$ |
10,835 |
|
|
$ |
5,923 |
|
|
|
|
|
|
||||
|
Long-term debt, less current maturities |
|
49,022 |
|
|
|
51,417 |
|
|
Non-current derivative liabilities |
|
193 |
|
|
|
237 |
|
|
Non-current operating lease liabilities |
|
814 |
|
|
|
837 |
|
|
Deferred income taxes |
|
3,648 |
|
|
|
3,428 |
|
|
Other non-current liabilities |
|
1,323 |
|
|
|
1,152 |
|
|
|
|
|
|
||||
|
Commitments and contingencies |
|
|
|
||||
|
Redeemable noncontrolling interests |
|
783 |
|
|
|
762 |
|
|
|
|
|
|
||||
|
Equity: |
|
|
|
||||
|
Limited Partners: |
|
|
|
||||
|
Preferred Unitholders |
|
6,051 |
|
|
|
— |
|
|
Common Unitholders |
|
25,230 |
|
|
|
18,531 |
|
|
General Partner |
|
(4 |
) |
|
|
(8 |
) |
|
Accumulated other comprehensive income (loss) |
|
23 |
|
|
|
6 |
|
|
Total partners’ capital |
|
31,300 |
|
|
|
18,529 |
|
|
Noncontrolling interest |
|
8,045 |
|
|
|
12,859 |
|
|
Total equity |
|
39,345 |
|
|
|
31,388 |
|
|
Total liabilities and equity |
$ |
105,963 |
|
|
$ |
95,144 |
|
| (1) |
As of December 31, 2021, current liabilities included $680 million of current maturities of long-term debt. This total includes all of the $650 million of senior notes due in April 2022 from the Bakken Pipeline entities, for which our proportional ownership is 36.4%. |
|
ENERGY TRANSFER LP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per unit data) (unaudited) |
|||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
REVENUES |
$ |
18,657 |
|
|
$ |
10,034 |
|
|
$ |
67,417 |
|
|
$ |
38,954 |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
||||||||
|
Cost of products sold |
|
14,754 |
|
|
|
6,703 |
|
|
|
50,395 |
|
|
|
25,487 |
|
|
Operating expenses |
|
989 |
|
|
|
796 |
|
|
|
3,574 |
|
|
|
3,218 |
|
|
Depreciation, depletion and amortization |
|
980 |
|
|
|
963 |
|
|
|
3,817 |
|
|
|
3,678 |
|
|
Selling, general and administrative |
|
235 |
|
|
|
156 |
|
|
|
818 |
|
|
|
711 |
|
|
Impairment losses |
|
10 |
|
|
|
77 |
|
|
|
21 |
|
|
|
2,880 |
|
|
Total costs and expenses |
|
16,968 |
|
|
|
8,695 |
|
|
|
58,625 |
|
|
|
35,974 |
|
|
OPERATING INCOME |
|
1,689 |
|
|
|
1,339 |
|
|
|
8,792 |
|
|
|
2,980 |
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net of interest capitalized |
|
(554 |
) |
|
|
(577 |
) |
|
|
(2,267 |
) |
|
|
(2,327 |
) |
|
Equity in earnings of unconsolidated affiliates |
|
55 |
|
|
|
73 |
|
|
|
246 |
|
|
|
119 |
|
|
Impairment of investments in unconsolidated affiliates |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(129 |
) |
|
Losses on extinguishments of debt |
|
(30 |
) |
|
|
(13 |
) |
|
|
(38 |
) |
|
|
(75 |
) |
|
Gains (losses) on interest rate derivatives |
|
(11 |
) |
|
|
74 |
|
|
|
61 |
|
|
|
(203 |
) |
|
Other, net |
|
32 |
|
|
|
6 |
|
|
|
77 |
|
|
|
12 |
|
|
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT) |
|
1,181 |
|
|
|
902 |
|
|
|
6,871 |
|
|
|
377 |
|
|
Income tax expense (benefit) |
|
(50 |
) |
|
|
69 |
|
|
|
184 |
|
|
|
237 |
|
|
NET INCOME |
|
1,231 |
|
|
|
833 |
|
|
|
6,687 |
|
|
|
140 |
|
|
Less: Net income attributable to noncontrolling interest |
|
297 |
|
|
|
312 |
|
|
|
1,167 |
|
|
|
739 |
|
|
Less: Net income attributable to redeemable noncontrolling interests |
|
13 |
|
|
|
12 |
|
|
|
50 |
|
|
|
49 |
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO PARTNERS |
|
921 |
|
|
|
509 |
|
|
|
5,470 |
|
|
|
(648 |
) |
|
General Partner’s interest in net income (loss) |
|
1 |
|
|
|
— |
|
|
|
6 |
|
|
|
(1 |
) |
|
Preferred Unitholders’ interest in net income |
|
100 |
|
|
|
— |
|
|
|
285 |
|
|
|
— |
|
|
Limited Partners’ interest in net income (loss) |
$ |
820 |
|
|
$ |
509 |
|
|
$ |
5,179 |
|
|
$ |
(647 |
) |
|
NET INCOME (LOSS) PER LIMITED PARTNER UNIT: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.29 |
|
|
$ |
0.19 |
|
|
$ |
1.89 |
|
|
$ |
(0.24 |
) |
|
Diluted |
$ |
0.29 |
|
|
$ |
0.19 |
|
|
$ |
1.89 |
|
|
$ |
(0.24 |
) |
|
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
2,824.5 |
|
|
|
2,699.1 |
|
|
|
2,734.4 |
|
|
|
2,695.6 |
|
|
Diluted |
|
2,830.6 |
|
|
|
2,699.1 |
|
|
|
2,739.6 |
|
|
|
2,695.6 |
|
|
ENERGY TRANSFER LP AND SUBSIDIARIES SUPPLEMENTAL INFORMATION (Dollars and units in millions) (unaudited) |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 (a) |
|
2020 |
||||||||
|
Reconciliation of net income to Adjusted EBITDA and Distributable Cash Flow (b): |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
1,231 |
|
|
$ |
833 |
|
|
$ |
6,687 |
|
|
$ |
140 |
|
|
Interest expense, net of interest capitalized |
|
554 |
|
|
|
577 |
|
|
|
2,267 |
|
|
|
2,327 |
|
|
Impairment losses |
|
10 |
|
|
|
77 |
|
|
|
21 |
|
|
|
2,880 |
|
|
Income tax expense (benefit) |
|
(50 |
) |
|
|
69 |
|
|
|
184 |
|
|
|
237 |
|
|
Depreciation, depletion and amortization |
|
980 |
|
|
|
963 |
|
|
|
3,817 |
|
|
|
3,678 |
|
|
Non-cash compensation expense |
|
30 |
|
|
|
28 |
|
|
|
111 |
|
|
|
121 |
|
|
(Gains) losses on interest rate derivatives |
|
11 |
|
|
|
(74 |
) |
|
|
(61 |
) |
|
|
203 |
|
|
Unrealized (gains) losses on commodity risk management activities |
|
(88 |
) |
|
|
44 |
|
|
|
(162 |
) |
|
|
71 |
|
|
Losses on extinguishments of debt |
|
30 |
|
|
|
13 |
|
|
|
38 |
|
|
|
75 |
|
|
Inventory valuation adjustments (Sunoco LP) |
|
(22 |
) |
|
|
(44 |
) |
|
|
(190 |
) |
|
|
82 |
|
|
Impairment of investment in an unconsolidated affiliate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
129 |
|
|
Equity in earnings of unconsolidated affiliates |
|
(55 |
) |
|
|
(73 |
) |
|
|
(246 |
) |
|
|
(119 |
) |
|
Adjusted EBITDA related to unconsolidated affiliates |
|
123 |
|
|
|
148 |
|
|
|
523 |
|
|
|
628 |
|
|
Other, net |
|
57 |
|
|
|
31 |
|
|
|
57 |
|
|
|
79 |
|
|
Adjusted EBITDA (consolidated) |
|
2,811 |
|
|
|
2,592 |
|
|
|
13,046 |
|
|
|
10,531 |
|
|
Adjusted EBITDA related to unconsolidated affiliates |
|
(123 |
) |
|
|
(148 |
) |
|
|
(523 |
) |
|
|
(628 |
) |
|
Distributable Cash Flow from unconsolidated affiliates |
|
78 |
|
|
|
99 |
|
|
|
346 |
|
|
|
452 |
|
|
Interest expense, net of interest capitalized |
|
(554 |
) |
|
|
(577 |
) |
|
|
(2,267 |
) |
|
|
(2,327 |
) |
|
Preferred unitholders’ distributions |
|
(113 |
) |
|
|
(96 |
) |
|
|
(418 |
) |
|
|
(378 |
) |
|
Current income tax (expense) benefit |
|
(10 |
) |
|
|
(19 |
) |
|
|
(44 |
) |
|
|
(27 |
) |
|
Maintenance capital expenditures |
|
(210 |
) |
|
|
(152 |
) |
|
|
(581 |
) |
|
|
(520 |
) |
|
Other, net |
|
18 |
|
|
|
17 |
|
|
|
68 |
|
|
|
74 |
|
|
Distributable Cash Flow (consolidated) |
|
1,897 |
|
|
|
1,716 |
|
|
|
9,627 |
|
|
|
7,177 |
|
|
Distributable Cash Flow attributable to Sunoco LP (100%) |
|
(143 |
) |
|
|
(97 |
) |
|
|
(542 |
) |
|
|
(516 |
) |
|
Distributions from Sunoco LP |
|
41 |
|
|
|
42 |
|
|
|
165 |
|
|
|
165 |
|
|
Distributable Cash Flow attributable to USAC (100%) |
|
(52 |
) |
|
|
(51 |
) |
|
|
(209 |
) |
|
|
(221 |
) |
|
Distributions from USAC |
|
24 |
|
|
|
25 |
|
|
|
97 |
|
|
|
97 |
|
|
Distributable Cash Flow attributable to noncontrolling interest in other non-wholly-owned consolidated subsidiaries |
|
(327 |
) |
|
|
(282 |
) |
|
|
(1,113 |
) |
|
|
(1,015 |
) |
|
Distributable Cash Flow attributable to the partners of Energy Transfer |
|
1,440 |
|
|
|
1,353 |
|
|
|
8,025 |
|
|
|
5,687 |
|
|
Transaction-related adjustments (c) |
|
160 |
|
|
|
9 |
|
|
|
194 |
|
|
|
55 |
|
|
Distributable Cash Flow attributable to the partners of Energy Transfer, as adjusted |
$ |
1,600 |
|
|
$ |
1,362 |
|
|
$ |
8,219 |
|
|
$ |
5,742 |
|
|
Distributions to partners: |
|
|
|
|
|
|
|
||||||||
|
Limited Partners |
$ |
540 |
|
|
$ |
412 |
|
|
$ |
1,777 |
|
|
$ |
2,468 |
|
|
General Partner |
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
|
Total distributions to be paid to partners |
$ |
541 |
|
|
$ |
413 |
|
|
$ |
1,779 |
|
|
$ |
2,471 |
|
|
Common Units outstanding – end of period |
|
3,082.5 |
|
|
|
2,702.3 |
|
|
|
3,082.5 |
|
|
|
2,702.3 |
|
|
Distribution coverage ratio |
2.96x |
|
3.30x |
|
4.62x |
|
2.32x |
||||||||
|
(a) |
Winter Storm Uri, which occurred in February 2021, resulted in one-time impacts to the Partnership’s consolidated net income, Adjusted EBITDA and Distributable Cash Flow. Please see additional discussion of these impacts, as well as the potential impacts to future periods, included in the “Summary Analysis of Quarterly Results by Segment” below. |
| (b) |
Adjusted EBITDA, Distributable Cash Flow and distribution coverage ratio 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, Distributable Cash Flow and distribution coverage ratio, 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, Distributable Cash Flow and distribution coverage ratio may not be consistent with similarly titled measures of other companies and should be viewed in conjunction with measurements 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. 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 Distributable Cash Flow attributable to partners, as adjusted, certain transaction-related adjustments and non-recurring expenses that are included in net income are excluded.
Definition of Distribution Coverage Ratio
Distribution coverage ratio for a period is calculated as Distributable Cash Flow attributable to partners, as adjusted, divided by distributions expected to be paid to the partners of Energy Transfer in respect of such period. |
|
|
(c) |
For the three months and year ended December 31, 2021, “Transaction-related adjustments” includes $143 million of Distributable Cash Flow attributable to the operations of Enable for October 1 through December 1, 2021, which represents amounts distributable to Energy Transfer’s common unitholders (including the holders of the common units issued in the Enable acquisition) with respect to the fourth quarter 2021 distribution. |
|
ENERGY TRANSFER LP AND SUBSIDIARIES SUMMARY ANALYSIS OF QUARTERLY RESULTS BY SEGMENT (Tabular dollar amounts in millions) (unaudited) |
|||||
|
|
Three Months Ended |
||||
|
|
2021 |
|
2020 |
||
|
Segment Adjusted EBITDA: |
|
|
|
||
|
Intrastate transportation and storage |
$ |
274 |
|
$ |
233 |
|
Interstate transportation and storage |
|
397 |
|
|
448 |
|
Midstream |
|
547 |
|
|
390 |
|
NGL and refined products transportation and services |
|
739 |
|
|
703 |
|
Crude oil transportation and services |
|
533 |
|
|
517 |
|
Investment in Sunoco LP |
|
198 |
|
|
159 |
|
Investment in USAC |
|
99 |
|
|
99 |
|
All other |
|
24 |
|
|
43 |
|
Total Segment Adjusted EBITDA |
$ |
2,811 |
|
$ |
2,592 |
Contacts
Energy Transfer
Investor Relations:
Bill Baerg, Brent Ratliff, Lyndsay Hannah, 214-981-0795
or
Media Relations:
Vicki Granado, 214-840-5820
