Energy Transfer LP Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Overall Financial Performance

  • Adjusted EBITDA was $3.5 billion, up from $3.1 billion in Q3 2022, driven by record NGL, refined products, and crude volumes.
  • Distributable Cash Flow (DCF) attributable to partners was $2 billion, up from $1.6 billion in Q3 2022.
  • Excess cash flow after distributions reached $1 billion.
  • Quarterly cash distribution was increased to $0.3125 per common unit (annualized $1.25), compared with $0.2650 in Q3 2022.
  • S&P upgraded Energy Transfer's (ET) senior unsecured credit rating to BBB with a stable outlook.
  • Total available revolver liquidity was $2.12 billion as of September 30, 2023.

Capital Markets & Balance Sheet

  • $4 billion senior notes issued in October, used to repay revolver borrowings and pre-fund 2024 maturities.
  • Q3 organic growth capital spending was $418 million.
  • 2023 growth capital expected to come in slightly below prior guidance of $2 billion.
  • Long-term annual growth capital expected to normalize at $2–$3 billion.

Segment Performance Highlights

  • NGL & Refined Products:
    • Adjusted EBITDA was $1.1 billion vs. $634 million in Q3 2022.
    • Record NGL transport volumes of 2.2 million bpd (up 14% year-over-year).
    • Fractionation volumes hit 1 million bpd, up 9% year-over-year.

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Operator: Good day, and welcome to the Energy Transfer Third 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 that this event is being recorded. I would like to turn the call over to Mr. Tom Long, Co-CEO of Energy Transfer. Please go ahead. Tom Long: Thank you, Operator, and good afternoon everyone. Welcome to the Energy Transfer's third 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 Web site. 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 September 30, 2023, which we expect to file tomorrow November 2. 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 financial measures on our Web site. We will start today by going over our financial results for the third quarter of 2023. We generated adjusted EBITDA

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