Energy Transfer LP Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Overall Financial Performance

  • Adjusted EBITDA: $3.1B, up ~20% from $2.6B in Q3 2021. Excluding nonrecurring items, EBITDA would have been $3.34B.
  • DCF (as adjusted): $1.6B vs. $1.3B in Q3 2021.
  • Excess cash flow after distributions: ~$760M.
  • Quarterly distribution increased to $0.265/unit (up more than 70% YoY), aiming to restore $0.305/unit.
  • Updated 2022 EBITDA guidance raised to $12.8B–$13.0B from prior $12.6B–$12.8B.

Segment Highlights

NGL & Refined Products

  • Adjusted EBITDA: $634M vs. $706M in Q3 2021. Excluding a $130M hedging-timing impact, EBITDA would have been ~$764M.
  • Record fractionation volumes: 940k bpd (vs. 884k bpd in Q3 2021).
  • Record ethane exports from both Nederland and Marcus Hook.
  • ET continues to account for ~20% of global NGL exports.

Midstream

  • Adjusted EBITDA: $868M vs. $556M in Q3 2021, driven by higher volumes and Enable acquisition.
  • Record gathered gas volumes: 19.1M MMBtu/d (vs. 13M in Q3 2021).
  • Processing capacity tight; new plants (Grey Wolf and Bear) under construction.

Crude Oil

  • Adjusted EBITDA: $461M vs. $496M in Q3 2021; excluding a $126M legal charge, EBITDA would have been $587M.
  • Transportation volumes hit record 4.6M bpd (vs. 4.2M bpd YoY).

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Operator: Good afternoon, and welcome to the Energy Transfer Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded today. I would now like to turn the conference over to Tom Long, Co-CEO. Please go ahead, sir. Tom Long: Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer third quarter 2022 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 the 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 quarterly report on Form 10-Q for the quarter ended September 30, 2022, which we expect to be filed this Thursday, November 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'll start today by going over our third quarter financial results. We wer

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