08 Aug Energy Transfer Reports Second Quarter 2024 Results
DALLAS–(BUSINESS WIRE)–Energy Transfer LP (NYSE:ET) (“Energy Transfer” or the “Partnership”) today reported financial results for the quarter ended June 30, 2024.
Energy Transfer reported net income attributable to partners for the three months ended June 30, 2024 of $1.31 billion. For the three months ended June 30, 2024, net income per common unit (basic) was $0.35.
Adjusted EBITDA for the three months ended June 30, 2024 was $3.76 billion compared to $3.12 billion for the three months ended June 30, 2023. Adjusted EBITDA for the current quarter includes more than $80 million of transaction-related expenses incurred by the Partnership and Sunoco LP.
Distributable Cash Flow attributable to partners, as adjusted, for the three months ended June 30, 2024 was $2.04 billion compared to $1.55 billion for the three months ended June 30, 2023, an increase of $485 million.
Growth capital expenditures in the second quarter of 2024 were $549 million, while maintenance capital expenditures were $223 million.
Operational Highlights
-
With the addition of new organic growth projects and acquisitions, volumes on Energy Transfer’s assets continued to increase during the second quarter of 2024.
- Crude oil transportation volumes were up 23%, setting a new Partnership record.
- Crude oil exports were up 11%.
- NGL fractionation volumes were up 11%.
- NGL exports were up approximately 3%, setting a new Partnership record.
- NGL transportation volumes were up 4%, setting a new Partnership record.
- NGL and refined products terminal volumes were up 4%, setting a new Partnership record.
- Refined products transportation volumes were up 9%.
- In June 2024, Energy Transfer began the relocation of a currently idle 200 MMcf/d cryogenic processing plant to the Delaware Basin. The Badger plant is expected to be in service in mid-2025.
- In July 2024, Energy Transfer placed a previously idle two million barrel butane well back into service at Mont Belvieu. This brings Energy Transfer’s total NGL storage capacity at Mont Belvieu to approximately 62 million barrels.
Strategic Highlights
- In July 2024, Energy Transfer completed the acquisition of WTG Midstream Holdings LLC (“WTG Midstream”). The acquired assets add approximately 6,000 miles of complementary gas gathering pipelines that extend Energy Transfer’s network in the Midland Basin. Also, as part of the transaction, the Partnership added eight gas processing plants with a total capacity of approximately 1.3 Bcf/d, and two additional processing plants under construction. Since closing the transaction, one of these 200 MMcf/d processing plants was placed into service.
- In July 2024, Energy Transfer and Sunoco LP announced the formation of a joint venture combining their respective crude oil and produced water gathering assets in the Permian Basin. Energy Transfer will serve as the operator of the joint venture and contribute its Permian crude oil and produced water gathering assets and operations to the joint venture.
- Energy Transfer recently approved the construction of its ninth fractionator at Mont Belvieu. Frac IX will have capacity of 165,000 Bbls/d and is expected to be in service in the fourth quarter of 2026.
Financial Highlights
- Energy Transfer now expects its full-year 2024 Adjusted EBITDA to range between $15.3 billion and $15.5 billion, compared to the previous range of between $15.0 billion and $15.3 billion. Energy Transfer’s updated Adjusted EBITDA estimate includes the impact of the WTG Midstream acquisition, which closed on July 15, 2024, and outperformance in the base business, even with over $100 million of transaction costs also included within the full-year guidance. With the addition of new growth projects, Energy Transfer now expects its 2024 growth capital expenditures to be approximately $3.1 billion, primarily due to the addition of growth capital related to WTG Midstream and quicker returning projects in our crude oil transportation and services segment related to the recent Crestwood acquisition.
- During the second quarter of 2024, Energy Transfer redeemed all of its outstanding Series A and Series E preferred units.
- In June 2024, Energy Transfer’s senior unsecured debt rating was upgraded by Moody’s Ratings to Baa2. This follows upgrades by Fitch and S&P to BBB in February 2024 and August 2023, respectively.
- In June 2024, the Partnership issued $1.00 billion aggregate principal amount of 5.25% Senior Notes due 2029, $1.25 billion aggregate principal amount of 5.60% Senior Notes due 2034, $1.25 billion aggregate principal amount of 6.05% Senior Notes due 2054 and $400 million aggregate principal amount of 7.125% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2054.
- In July 2024, Energy Transfer announced a cash distribution of $0.32 per common unit ($1.28 annualized) for the quarter ended June 30, 2024, which is an increase of 3.2% compared to the second quarter of 2023.
- As of June 30, 2024, the Partnership’s revolving credit facility had no outstanding 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 June 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, August 7, 2024 to discuss its second 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 |
|||||||
|
|
June 30, 2024 |
|
December 31, 2023 |
||||
|
ASSETS |
|||||||
|
Current assets |
$ |
13,406 |
|
|
$ |
12,433 |
|
|
|
|
|
|
||||
|
Property, plant and equipment, net |
|
91,888 |
|
|
|
85,351 |
|
|
|
|
|
|
||||
|
Investments in unconsolidated affiliates |
|
3,236 |
|
|
|
3,097 |
|
|
Non-current derivative assets |
|
1 |
|
|
|
— |
|
|
Lease right-of-use assets, net |
|
854 |
|
|
|
826 |
|
|
Other non-current assets, net |
|
1,842 |
|
|
|
1,733 |
|
|
Intangible assets, net |
|
6,202 |
|
|
|
6,239 |
|
|
Goodwill |
|
3,910 |
|
|
|
4,019 |
|
|
Total assets |
$ |
121,339 |
|
|
$ |
113,698 |
|
|
LIABILITIES AND EQUITY |
|||||||
|
Current liabilities |
$ |
11,709 |
|
|
$ |
11,277 |
|
|
|
|
|
|
||||
|
Long-term debt, less current maturities |
|
57,359 |
|
|
|
51,380 |
|
|
Non-current derivative liabilities |
|
— |
|
|
|
4 |
|
|
Non-current operating lease liabilities |
|
750 |
|
|
|
778 |
|
|
Deferred income taxes |
|
4,001 |
|
|
|
3,931 |
|
|
Other non-current liabilities |
|
1,631 |
|
|
|
1,611 |
|
|
|
|
|
|
||||
|
Commitments and contingencies |
|
|
|
||||
|
Redeemable noncontrolling interests |
|
417 |
|
|
|
778 |
|
|
|
|
|
|
||||
|
Equity: |
|
|
|
||||
|
Limited Partners: |
|
|
|
||||
|
Preferred Unitholders |
|
3,852 |
|
|
|
6,459 |
|
|
Common Unitholders |
|
30,414 |
|
|
|
30,197 |
|
|
General Partner |
|
(2 |
) |
|
|
(2 |
) |
|
Accumulated other comprehensive income |
|
48 |
|
|
|
28 |
|
|
Total partners’ capital |
|
34,312 |
|
|
|
36,682 |
|
|
Noncontrolling interests |
|
11,160 |
|
|
|
7,257 |
|
|
Total equity |
|
45,472 |
|
|
|
43,939 |
|
|
Total liabilities and equity |
$ |
121,339 |
|
|
$ |
113,698 |
|
|
ENERGY TRANSFER LP AND SUBSIDIARIES |
|||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
REVENUES |
$ |
20,729 |
|
|
$ |
18,320 |
|
|
$ |
42,358 |
|
|
$ |
37,315 |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
||||||||
|
Cost of products sold |
|
15,609 |
|
|
|
14,092 |
|
|
|
32,206 |
|
|
|
28,702 |
|
|
Operating expenses |
|
1,227 |
|
|
|
1,094 |
|
|
|
2,365 |
|
|
|
2,119 |
|
|
Depreciation, depletion and amortization |
|
1,213 |
|
|
|
1,061 |
|
|
|
2,467 |
|
|
|
2,120 |
|
|
Selling, general and administrative |
|
332 |
|
|
|
228 |
|
|
|
592 |
|
|
|
466 |
|
|
Impairment losses |
|
50 |
|
|
|
10 |
|
|
|
50 |
|
|
|
11 |
|
|
Total costs and expenses |
|
18,431 |
|
|
|
16,485 |
|
|
|
37,680 |
|
|
|
33,418 |
|
|
OPERATING INCOME |
|
2,298 |
|
|
|
1,835 |
|
|
|
4,678 |
|
|
|
3,897 |
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net of interest capitalized |
|
(762 |
) |
|
|
(641 |
) |
|
|
(1,490 |
) |
|
|
(1,260 |
) |
|
Equity in earnings of unconsolidated affiliates |
|
85 |
|
|
|
95 |
|
|
|
183 |
|
|
|
183 |
|
|
Loss on extinguishment of debt |
|
(6 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
— |
|
|
Gain on interest rate derivatives |
|
3 |
|
|
|
35 |
|
|
|
12 |
|
|
|
15 |
|
|
Gain on sale of Sunoco LP West Texas assets |
|
598 |
|
|
|
— |
|
|
|
598 |
|
|
|
— |
|
|
Other, net |
|
3 |
|
|
|
17 |
|
|
|
30 |
|
|
|
24 |
|
|
INCOME BEFORE INCOME TAX EXPENSE |
|
2,219 |
|
|
|
1,341 |
|
|
|
4,000 |
|
|
|
2,859 |
|
|
Income tax expense |
|
227 |
|
|
|
108 |
|
|
|
316 |
|
|
|
179 |
|
|
NET INCOME |
|
1,992 |
|
|
|
1,233 |
|
|
|
3,684 |
|
|
|
2,680 |
|
|
Less: Net income attributable to noncontrolling interests |
|
663 |
|
|
|
308 |
|
|
|
1,099 |
|
|
|
629 |
|
|
Less: Net income attributable to redeemable noncontrolling interests |
|
15 |
|
|
|
14 |
|
|
|
31 |
|
|
|
27 |
|
|
NET INCOME ATTRIBUTABLE TO PARTNERS |
|
1,314 |
|
|
|
911 |
|
|
|
2,554 |
|
|
|
2,024 |
|
|
General Partner’s interest in net income |
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
Preferred Unitholders’ interest in net income |
|
98 |
|
|
|
113 |
|
|
|
227 |
|
|
|
222 |
|
|
Loss on redemption of preferred units |
|
33 |
|
|
|
— |
|
|
|
54 |
|
|
|
— |
|
|
Common Unitholders’ interest in net income |
$ |
1,182 |
|
|
$ |
797 |
|
|
$ |
2,271 |
|
|
$ |
1,800 |
|
|
NET INCOME PER COMMON UNIT: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.35 |
|
|
$ |
0.25 |
|
|
$ |
0.67 |
|
|
$ |
0.58 |
|
|
Diluted |
$ |
0.35 |
|
|
$ |
0.25 |
|
|
$ |
0.67 |
|
|
$ |
0.57 |
|
|
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
3,370.6 |
|
|
|
3,126.9 |
|
|
|
3,369.6 |
|
|
|
3,111.3 |
|
|
Diluted |
|
3,394.9 |
|
|
|
3,148.2 |
|
|
|
3,393.3 |
|
|
|
3,133.0 |
|
|
ENERGY TRANSFER LP AND SUBSIDIARIES |
|||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Reconciliation of net income to Adjusted EBITDA and Distributable Cash Flow(a): |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
1,992 |
|
|
$ |
1,233 |
|
|
$ |
3,684 |
|
|
$ |
2,680 |
|
|
Interest expense, net of interest capitalized |
|
762 |
|
|
|
641 |
|
|
|
1,490 |
|
|
|
1,260 |
|
|
Impairment losses |
|
50 |
|
|
|
10 |
|
|
|
50 |
|
|
|
11 |
|
|
Income tax expense |
|
227 |
|
|
|
108 |
|
|
|
316 |
|
|
|
179 |
|
|
Depreciation, depletion and amortization |
|
1,213 |
|
|
|
1,061 |
|
|
|
2,467 |
|
|
|
2,120 |
|
|
Non-cash compensation expense |
|
30 |
|
|
|
27 |
|
|
|
76 |
|
|
|
64 |
|
|
Gain on interest rate derivatives |
|
(3 |
) |
|
|
(35 |
) |
|
|
(12 |
) |
|
|
(15 |
) |
|
Unrealized (gain) loss on commodity risk management activities |
|
(38 |
) |
|
|
(55 |
) |
|
|
103 |
|
|
|
75 |
|
|
Loss on extinguishment of debt |
|
6 |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
Inventory valuation adjustments (Sunoco LP) |
|
32 |
|
|
|
57 |
|
|
|
(98 |
) |
|
|
28 |
|
|
Equity in earnings of unconsolidated affiliates |
|
(85 |
) |
|
|
(95 |
) |
|
|
(183 |
) |
|
|
(183 |
) |
|
Adjusted EBITDA related to unconsolidated affiliates |
|
170 |
|
|
|
171 |
|
|
|
341 |
|
|
|
332 |
|
|
Gain on sale of Sunoco LP West Texas assets |
|
(598 |
) |
|
|
— |
|
|
|
(598 |
) |
|
|
— |
|
|
Other, net |
|
2 |
|
|
|
(1 |
) |
|
|
(7 |
) |
|
|
4 |
|
|
Adjusted EBITDA (consolidated) |
|
3,760 |
|
|
|
3,122 |
|
|
|
7,640 |
|
|
|
6,555 |
|
|
Adjusted EBITDA related to unconsolidated affiliates |
|
(170 |
) |
|
|
(171 |
) |
|
|
(341 |
) |
|
|
(332 |
) |
|
Distributable cash flow from unconsolidated affiliates |
|
121 |
|
|
|
115 |
|
|
|
246 |
|
|
|
233 |
|
|
Interest expense, net of interest capitalized |
|
(762 |
) |
|
|
(641 |
) |
|
|
(1,490 |
) |
|
|
(1,260 |
) |
|
Preferred unitholders’ distributions |
|
(100 |
) |
|
|
(127 |
) |
|
|
(218 |
) |
|
|
(247 |
) |
|
Current income tax expense |
|
(239 |
) |
|
|
(26 |
) |
|
|
(261 |
) |
|
|
(44 |
) |
|
Transaction-related income taxes (b) |
|
199 |
|
|
|
— |
|
|
|
199 |
|
|
|
— |
|
|
Maintenance capital expenditures |
|
(258 |
) |
|
|
(237 |
) |
|
|
(393 |
) |
|
|
(399 |
) |
|
Other, net |
|
19 |
|
|
|
5 |
|
|
|
56 |
|
|
|
10 |
|
|
Distributable Cash Flow (consolidated) |
|
2,570 |
|
|
|
2,040 |
|
|
|
5,438 |
|
|
|
4,516 |
|
|
Distributable Cash Flow attributable to Sunoco LP (100%) |
|
(186 |
) |
|
|
(173 |
) |
|
|
(357 |
) |
|
|
(333 |
) |
|
Distributions from Sunoco LP |
|
61 |
|
|
|
44 |
|
|
|
122 |
|
|
|
87 |
|
|
Distributable Cash Flow attributable to USAC (100%) |
|
(85 |
) |
|
|
(67 |
) |
|
|
(172 |
) |
|
|
(130 |
) |
|
Distributions from USAC |
|
24 |
|
|
|
24 |
|
|
|
48 |
|
|
|
48 |
|
|
Distributable Cash Flow attributable to noncontrolling interests in other non-wholly owned consolidated subsidiaries |
|
(346 |
) |
|
|
(324 |
) |
|
|
(688 |
) |
|
|
(638 |
) |
|
Distributable Cash Flow attributable to the partners of Energy Transfer |
|
2,038 |
|
|
|
1,544 |
|
|
|
4,391 |
|
|
|
3,550 |
|
|
Transaction-related adjustments |
|
1 |
|
|
|
10 |
|
|
|
4 |
|
|
|
12 |
|
|
Distributable Cash Flow attributable to the partners of Energy Transfer, as adjusted |
$ |
2,039 |
|
|
$ |
1,554 |
|
|
$ |
4,395 |
|
|
$ |
3,562 |
|
|
Distributions to partners: |
|
|
|
|
|
|
|
||||||||
|
Limited Partners |
$ |
1,095 |
|
|
$ |
974 |
|
|
$ |
2,165 |
|
|
|
1,940 |
|
|
General Partner |
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
Total distributions to be paid to partners |
$ |
1,096 |
|
|
$ |
975 |
|
|
$ |
2,167 |
|
|
$ |
1,942 |
|
|
Common Units outstanding – end of period |
|
3,371.4 |
|
|
|
3,143.2 |
|
|
|
3,371.4 |
|
|
|
3,143.2 |
|
|
(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. |
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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. |
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Definition of Adjusted EBITDA |
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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. |
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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. |
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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. |
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Definition of Distributable Cash Flow |
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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. |
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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. |
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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: |
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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. |
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(b) |
For the three and six months ended June 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. |
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ENERGY TRANSFER LP AND SUBSIDIARIES |
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Three Months Ended June 30, |
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2024 |
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2023 |
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Segment Adjusted EBITDA: |
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Intrastate transportation and storage |
$ |
328 |
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$ |
216 |
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Interstate transportation and storage |
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392 |
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441 |
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Midstream |
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693 |
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579 |
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NGL and refined products transportation and services |
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1,070 |
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|
837 |
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Crude oil transportation and services |
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801 |
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|
674 |
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Investment in Sunoco LP |
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320 |
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250 |
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Investment in USAC |
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144 |
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125 |
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All other |
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12 |
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— |
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Adjusted EBITDA (consolidated) |
$ |
3,760 |
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$ |
3,122 |
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| 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. |
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Intrastate Transportation and Storage |
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Three Months Ended June 30, |
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2024 |
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2023 |
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Natural gas transported (BBtu/d) |
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13,143 |
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15,207 |
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Withdrawals from storage natural gas inventory (BBtu) |
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— |
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2,400 |
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Revenues |
$ |
637 |
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$ |
807 |
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Cost of products sold |
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205 |
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470 |
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Segment margin |
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432 |
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337 |
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Unrealized gains on commodity risk management activities |
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(29 |
) |
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(44 |
) |
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Operating expenses, excluding non-cash compensation expense |
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(66 |
) |
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(74 |
) |
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Selling, general and administrative expenses, excluding non-cash compensation expense |
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(14 |
) |
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(11 |
) |
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Adjusted EBITDA related to unconsolidated affiliates |
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5 |
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7 |
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Other |
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— |
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1 |
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Segment Adjusted EBITDA |
$ |
328 |
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$ |
216 |
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Contacts
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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