Energy Transfer LP Q4 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Adjusted EBITDA for full-year 2021 was $13 billion, significantly higher than 2020 and in line with expectations.
  • Distributable Cash Flow (DCF), as adjusted, was $8.2 billion with excess cash flow after distributions of approximately $6.4 billion.
  • Quarterly distribution raised 15% to $0.175 per unit ($0.70 annualized), the first planned step toward restoring the prior $1.22 annual distribution.
  • Strong operational performance included record NGL pipeline volumes, refined products terminal volumes, and fractionation throughput.
  • Enable Midstream acquisition contributed to increased scale and synergy opportunities, including $100 million annual cost savings (with $75 million expected in 2022).

Financial Performance (Q4 2021 vs Q4 2020)

  • Adjusted EBITDA: $2.8 billion, up from $2.6 billion (+200 million).
  • DCF attributable to partners: $1.6 billion, up from $1.4 billion.
  • NGL & Refined Products EBITDA: $739 million vs $703 million.
    • NGL pipeline volumes hit 1.9 million barrels/day vs 1.4 million.
    • Fractionation volumes were 895,000 barrels/day vs 825,000.
  • Crude Oil EBITDA: $533 million vs $517 million, with improving volumes in Permian and Bakken.
  • Midstream EBITDA: $547 million vs $390 million, driven by favorable NGL/gas prices and Permian/South Texas/Northeast growth.

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Operator: Greetings, and welcome to the Energy Transfer Fourth Quarter Earnings Results Conference Call. [Operator Instructions] Please note that this conference is also being recorded. I will now turn the conference over to our 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 Fourth Quarter 2021 Earnings Call, and thank you for joining us today. I'm also joined today by Mackie McCrea and other members of our 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 annual report on Form 10-K for the year ended December 31, 2021, which we expect to be filed this Friday, February 18. 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 looking at some of our fourth quarter and full year 2021 highlights. For the full year 2021, we generated adjust

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