Energy Transfer LP Q1 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Merger and Strategic Updates

  • The Form S-4 registration statement for the pending merger with Energy Transfer was declared effective in early April.
  • Major sponsors CenterPoint and OG&E have delivered written consents approving the merger; all unit holders may still submit written consents before the deadline.
  • The merger is expected to close mid-2021, subject to conditions including Hart-Scott-Rodino clearance.
  • Management reiterated strategic benefits of the all‑equity transaction such as asset diversification, tax efficiency, and unitholder participation in post‑integration upside.

Q1 2021 Financial Highlights (Compared to Q1 2020)

  • Revenue and gross margin increased, driven by:
    • Higher commodity prices
    • Asset optimization
    • Increased billings associated with winter storm Uri
  • Net income improved due to:
    • Lower O&M expenses from ongoing cost‑discipline initiatives
    • Lower interest expense
    • Absence of non‑cash impairments (vs. $28 million impairment in Q1 2020)
  • Adjusted EBITDA increased 15% year over year.
  • Distributable cash flow (DCF) increased 22% year over year.
  • DCF exceeded common unit distributions by $189 million, achieving a 3.63x coverage ratio.

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Operator: Good morning. My name is Rebecca and I will be your conference operator today. At this time, I would like to welcome everyone to the Enable Midstream First Quarter 2021 Earnings Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. Thank you. Mr. Matt Beasley, you may begin your conference. Matt Beasley: Thank you and good morning everyone. Presenting on this morning's call are Rod Sailor, our President and CEO; and John Laws, our Chief Financial Officer. Earlier this morning, we issued our earnings press release and filed our Form 10-Q with the SEC. Our earnings press release, Form 10-Q filing, and the presentation that accompanies this call are all available in the Investor Relations section of our website. We will also be posting a replay of today's call to the site. Today's discussion will include forward-looking statements within the meaning of the securities laws. Actual results could differ materially from our projections and a discussion of factors that could cause actual results to differ from projections can be found in our SEC filings. We will also be referencing non-GAAP financial measures on today's call, which we have reconciled to the nearest GAAP measures in the appendix of today's presentation. We invite you to review the disclaimers in this presentation for both forward-looking statements including statements about our pending merger with Energy Transfer and non-GAAP financial measures. In light of the pen

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