Energy Transfer Reports Second Quarter 2023 Results
Business Wire
Wed, Aug 2, 2023, 4:10 PM EDT10 min read
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DALLAS, August 02, 2023--(BUSINESS WIRE)--Energy Transfer LP (NYSE:ET) ("Energy Transfer" or the "Partnership") today reported financial results for the quarter ended June 30, 2023.
Energy Transfer reported net income attributable to partners for the three months ended June 30, 2023 of $911 million. For the three months ended June 30, 2023, net income per common unit (basic) was $0.25 per unit.
Adjusted EBITDA for the three months ended June 30, 2023 was $3.12 billion compared to $3.23 billion for the three months ended June 30, 2022.
Distributable Cash Flow attributable to partners, as adjusted, for the three months ended June 30, 2023 was $1.55 billion compared to $1.88 billion for the three months ended June 30, 2022.
Growth capital expenditures in the second quarter of 2023 were $387 million while maintenance capital expenditures were $216 million.
Operational Highlights
During the second quarter of 2023, Energy Transfer’s assets continued to reach new milestones, with volumes increasing across most segments compared to the same period last year.
NGL fractionation volumes were up 5%, setting a new Partnership record.
NGL transportation volumes were up 13%, setting a new Partnership record.
Midstream gathered volumes increased 8%, setting a new Partnership record.
Intrastate natural gas transportation volumes were up 3%, setting a new Partnership record.
Interstate natural gas transportation volumes were up 17%.
Crude transportation and terminal volumes were up 23% and 15%, respectively.
Total NGL exports out of both the Nederland and Marcus Hook Terminals reached another record in the second quarter.
In June 2023, the 200 MMcf/d Bear cryogenic processing plant, which is located in the Delaware Basin, was placed into service.
Strategic Highlights
In May 2023, the Partnership completed the acquisition of Lotus Midstream Operations, LLC, and integration of operations is ongoing.
In July 2023, Lake Charles LNG entered into three non-binding Heads of Agreements ("HOAs") related to long-term LNG offtake for an aggregate of 3.6 million tonnes per annum.
Financial Highlights
Energy Transfer expects its full-year 2023 Adjusted EBITDA to range between $13.1 billion and $13.4 billion, which is slightly tighter than the previous range ($13.05 billion to $13.45 billion) while keeping the midpoint the same.
In July 2023, Energy Transfer announced a quarterly cash distribution of $0.31 per common unit ($1.24 annualized) for the quarter ended June 30, 2023.
As of June 30, 2023, the Partnership’s revolving credit facility had an aggregate $2.36 billion of available borrowing capacity.
For the three months ended June 30, 2023, the Partnership invested approximately $387 million on growth capital expenditures.
Energy Transfer benefits from a portfolio of assets with exceptional product and geographic diversity. The Partnership’s multiple segments generate high-quality, balanced earnings with no single segment contributing more than 30% of the Partnership’s consolidated Adjusted EBITDA for the three months ended June 30, 2023. The vast majority of the Partnership’s segment margins are fee-based and therefore have limited commodity price sensitivity.
