Energy Transfer LP (NYSE: ET) (“Energy Transfer” or the “Partnership”) today announced its financial results for the quarter ended June 30, 2024.
The Partnership reported net income attributable to partners of $1.31 billion for the three months ended June 30, 2024, with a net income per common unit (basic) of $0.35.
Adjusted EBITDA for the quarter was $3.76 billion, up from $3.12 billion for the same period in 2023. The increase includes over $80 million in transaction-related expenses incurred by the Partnership and Sunoco LP.
Distributable Cash Flow attributable to partners, as adjusted, rose to $2.04 billion for the three months ended June 30, 2024, compared to $1.55 billion for the same period in 2023, reflecting an increase of $485 million.
Growth capital expenditures for Q2 2024 amounted to $549 million, while maintenance capital expenditures were $223 million.
Operational Highlights:
- Energy Transfer’s assets saw increased volumes due to new organic growth projects and acquisitions during Q2 2024.
- Crude oil transportation volumes increased by 23%, setting a new Partnership record.
- Crude oil exports rose by 11%.
- NGL (Natural Gas Liquids) fractionation volumes increased by 11%.
- NGL exports rose by approximately 3%, also setting a new Partnership record.
- NGL transportation volumes were up 4%, setting another record.
- NGL and refined products terminal volumes increased by 4%, setting a new Partnership record.
- Refined products transportation volumes were up 9%.
- In June 2024, Energy Transfer began relocating an idle 200 MMcf/d cryogenic processing plant to the Delaware Basin, expected to be operational by mid-2025.
- In July 2024, the Partnership reactivated a two million barrel butane well at Mont Belvieu, bringing total NGL storage capacity there to approximately 62 million barrels.
Strategic Highlights:
- In July 2024, Energy Transfer completed the acquisition of WTG Midstream Holdings LLC, adding approximately 6,000 miles of gas gathering pipelines in the Midland Basin and eight gas processing plants with a total capacity of 1.3 Bcf/d, plus two additional plants under construction. One of these plants, with a capacity of 200 MMcf/d, has already been brought online.
- Energy Transfer and Sunoco LP announced a joint venture in July 2024, combining their crude oil and produced water gathering assets in the Permian Basin. Energy Transfer will operate the joint venture.
- The Partnership has approved the construction of its ninth fractionator at Mont Belvieu, with a capacity of 165,000 Bbls/d, expected to be in service by Q4 2026.
Financial Highlights:
- Energy Transfer has updated its full-year 2024 Adjusted EBITDA guidance to range between $15.3 billion and $15.5 billion, up from the previous range of $15.0 billion to $15.3 billion. This revision accounts for the impact of the WTG Midstream acquisition and the strong performance of the base business, despite over $100 million in transaction costs included in the full-year guidance.
- The Partnership expects its 2024 growth capital expenditures to be approximately $3.1 billion, driven by additional growth capital related to the WTG Midstream acquisition and accelerated projects in the crude oil transportation and services segment following the recent Crestwood acquisition.
- During Q2 2024, Energy Transfer redeemed all of its outstanding Series A and Series E preferred units.
- In June 2024, Moody’s upgraded Energy Transfer’s senior unsecured debt rating to Baa2, following similar upgrades by Fitch and S&P to BBB in February 2024 and August 2023, respectively.
- Also in June 2024, Energy Transfer issued $1.00 billion in 5.25% Senior Notes due 2029, $1.25 billion in 5.60% Senior Notes due 2034, $1.25 billion in 6.05% Senior Notes due 2054, and $400 million in 7.125% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2054.
- In July 2024, Energy Transfer declared a cash distribution of $0.32 per common unit ($1.28 annualized) for Q2 2024, marking a 3.2% increase compared to Q2 2023.
- As of June 30, 2024, the Partnership’s revolving credit facility had no outstanding borrowings.
Energy Transfer benefits from a diversified portfolio of assets, with no single segment contributing more than one-third of the Partnership’s consolidated Adjusted EBITDA for Q2 2024. The vast majority of the Partnership’s segment margins are fee-based, providing limited exposure to commodity price fluctuations.
