Energy Transfer LP has reported its financial results for the quarter ended 30 June 2019.
ET reported net income attributable to partners for the three months ended 30 June 2019 of US$878 million, an increase of US$523 million compared to the three months ended 30 June 2018. For the prior period, net income attributable to partners continues to reflect only the amount of net income attributable to the legacy Energy Transfer LP partners prior to the simplification merger transaction of ET and Energy Transfer Operating, L.P. (ETO) on 19 October 2018.
Adjusted EBITDA for the three months ended 30 June 2019 was US$2.82 billion, an increase of US$562 million compared to the three months ended 30 June 2018. Results were supported by significant increases in four of the partnership’s five core segments, with record operating performance in the partnership’s NGL and refined products segment.
Distributable Cash Flow attributable to partners, as adjusted, for the three months ended 30 June 2019 was US$1.60 billion, an increase of US$301 million compared to the three months ended 30 June 2018. The increase was primarily due to the increase in Adjusted EBITDA.
Key accomplishments and current developments
- ET announced its eighth natural gas liquids (NGL) fractionation facility at Mont Belvieu, Texas. Fractionator VIII will be a 150 000 bpd fractionator that is scheduled to be in service in 2Q21. With the addition of Fractionator VIII, ET will have more than one million barrels per day of fractionation capacity at Mont Belvieu.
- ET announced a binding supplemental open season in July 2019 to solicit additional shipper commitments that would further support a capacity optimisation on the Bakken pipeline system.
- The Permian Express 4 expansion is ongoing, and ET expects to have the project, which adds 120 000 barrels per day of capacity from the Permian Basin to Gulf Coast markets, in-service by the end of 3Q19.
- ET and Sunoco LP closed on the JC Nolan Pipeline joint venture in July 2019 and successfully commissioned the diesel fuel pipeline in West Texas this week.
- Construction is ongoing at ET’s ethane storage tank and chilling facilities in Nederland, Texas with an expected in-service date in 4Q20.
- ET opened an office in Beijing in April and continues to expand its international marketing efforts to meet growing demand for LNG and NGL products.
- In July 2019, ET announced a quarterly distribution of US$0.305 per unit (US$1.220 annualised) on ET common units for the quarter ended 30 June 2019. The distribution coverage ratio for 2Q19 is 2.00x.
- As of 30 June 2019, ETO’s US$6.00 billion revolving credit facilities had an aggregate US$3.56 billion of available capacity, and ETO’s leverage ratio, as defined by its credit agreement, was 3.61x.
ET benefits from a portfolio of assets with product and geographic diversity. The partnership’s multiple segments generate high-quality, balanced earnings with no single segment contributing more than 30% of the partnership’s consolidated Adjusted EBITDA for the three months ended 30 June 2019. The great majority of the partnership’s segment margins are fee-based and therefore have limited commodity price sensitivity.
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