Energy Transfer LP Q4 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Performance

  • Full-year 2023 adjusted EBITDA was $13.7 billion, up 5% from 2022 and a company record.
  • Full-year DCF was $7.6 billion, producing $3.6 billion in excess cash after distributions.
  • Q4 2023 adjusted EBITDA was $3.6 billion, compared to $3.4 billion in Q4 2022.
  • Q4 DCF was $2.0 billion vs. $1.9 billion in the prior-year quarter; excess cash flow was $970 million.
  • Quarterly distribution increased to $0.315 per unit, up 3.3% from $0.305 in Q4 2022.
  • Investment-grade credit rating upgrades from S&P and Fitch to BBB with stable outlook.
  • Leverage now in the lower half of the 4.0–4.5x target range.
  • Issued $3 billion in senior notes and $800 million in subordinated notes in January 2024; redeemed Series C and D preferred units, with Series E to be redeemed by May 2024.

Segment Highlights (Q4 2023)

NGL and Refined Products

  • Adjusted EBITDA: $1.0 billion, up from $928 million in Q4 2022.
  • NGL transportation volumes up 10% to 2.2 million barrels/day.
  • Fractionation volumes up 16% to a record 1.1 million barrels/day.
  • NGL exports up 13% year-over-year; Energy Transfer maintained ~20% global market share in 2023.

Midstream

  • Adjusted EBITDA: $674 million vs. $632 million in Q4 2022.

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Operator: Good afternoon. And welcome to the Energy Transfer Fourth 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 Tom Long. Please go ahead. Tom Long: Thank you, Operator, and good afternoon, everyone. And welcome to the Energy Transfer's fourth 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 full year ended December 31, 2023, which we expect to file this Friday, February 16. 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 website. Let's start today by going over our financial results. For the full year 2023, we generated adjusted EBITDA $13.7 billion, which i

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