Energy Transfer LP Q3 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Quarterly Performance Overview

  • Adjusted EBITDA was $2.6 billion, down from $2.9 billion in Q3 2020. Decline driven by the absence of 2020’s significant optimization gains and a $103 million midstream one-time gain last year.
  • Distributable Cash Flow (DCF) was $1.31 billion versus $1.69 billion in Q3 2020.
  • Excess cash flow after distributions was approximately $900 million.
  • Growth in volumes across most segments, including record volumes in NGL transportation, fractionation, and refined products terminals.

Segment Highlights

  • NGL & Refined Products: Adjusted EBITDA of $706 million versus $762 million in Q3 2020. Record NGL transport volumes at 1.8 million barrels/day (up from 1.5 million). Fractionation volumes also reached a record 884,000 barrels/day.
  • Crude Oil: Adjusted EBITDA was $496 million vs. $631 million last year. Increased Bakken/Bayou Bridge volumes were offset by prior-year one-time items and lower optimization results.
  • Midstream: Adjusted EBITDA of $556 million, up from $530 million in Q3 2020. Benefit from higher commodity prices and Permian/Northeast volume growth.
  • Interstate: Adjusted EBITDA fell to $334 million from $425 million, driven by contract expirations and shipper bankruptcy.

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Operator: Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Energy Transfer Third Quarter Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Tom Long, Co-Chief Executive Officer for Energy Transfer. Thank you. You may begin. Tom Long: Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer Third Quarter 2021 Earnings Call, and thank you for joining us today. 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 on our current beliefs as well as certain assumptions and information currently available to us and are discussed in more detail in our quarterly report on Form 10-Q for the quarter ended September 30, 2021, which we expect to be filed tomorrow, November 4. I'll also refer to adjusted EBITDA and distributable cash flow, or DCF, all 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 looking at some of our third quarter highlights. We generated adjusted EBITDA of $2.6

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