Energy Transfer LP Q2 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Quarterly Financial Performance

  • Adjusted EBITDA was $3.12 billion, down from $3.23 billion in Q2 2022 due to significantly lower natural gas (-70%) and NGL (-45%) prices despite record operational volumes.
  • Distributable cash flow was $1.55 billion, compared with $1.88 billion in Q2 2022.
  • Excess cash flow after distributions totaled $579 million.
  • The quarterly distribution was raised to $0.31 per common unit (up from $0.23 in Q2 2022). The company reiterates its 3%–5% targeted annual distribution growth.
  • Liquidity stood at $2.36 billion under revolving credit facilities as of June 30, 2023.
  • Full-year 2023 adjusted EBITDA guidance tightened to $13.1–$13.4 billion, midpoint unchanged.

Segment Performance Highlights

NGL & Refined Products
  • Adjusted EBITDA rose to $837 million from $763 million YoY. Adjusted for hedging timing effects, EBITDA would have been $888 million.
  • NGL pipeline volumes hit a record 2.2 million bpd (+13% YoY).
  • Fractionation volumes reached a record 989,000 bpd (+5% YoY).
  • NGL export volumes increased 15% YoY with record activity at Nederland and Marcus Hook terminals.
  • The company maintains ~20% market share in global NGL exports and ~40% of U.S. exports.
Midstream

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Operator: Good day, and welcome to the Energy Transfer Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note today's event is being recorded. I now like to turn the conference over to, Tom Long. Please go ahead. Tom Long: Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer’s second quarter 2023 earnings call. I'm also joined today by Mackie McCrea and other members of the senior management team who are here to help answer your questions after our prepared remarks. Hopefully, you saw the press release we issued earlier this afternoon as well as the slides posted to our website. As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements are based upon our current beliefs as well as certain assumptions and information currently available to us and are discussed in more detail in our Form 10-Q for the quarter ended June 30, 2023, which we expect to file tomorrow August, the 3. I'll also refer to adjusted EBITDA and distributable cash flow or DCF, both of which are non-GAAP financial measures. You'll find a reconciliation of our non-GAAP measures on our website. I'd like to start today by going over our financial results for the second quarter of 2023. We generated adjusted EBITDA of $3.12 billion, compared to $3.2

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