(Energy Transfer, 6.Nov.2024) â Energy Transfer LP revealed its third-quarter 2024 results including details related to development of a large-scale LNG export facility at existing Lake Charles LNG regasification terminal as well as a ammonia hub concept at Lake Charles, LA and Nederland, TX that would provide infrastructure services to several blue ammonia facilities, including natural gas supply, CO2 transportation to 3rd party sequestration sites, ammonia storage and deep-water marine loading services.
Energy Transfer reported net income attributable to partners for the three months ended 30 Sep. 2024 of $1.18bn. For the three months ended 30 Sep. 2024, net income per common unit (basic) was $0.33.
Adjusted EBITDA for the three months ended 30 Sep. 2024 was $3.96bn compared to $3.54bn for the three months ended 30 Sep. 2023.
Distributable Cash Flow attributable to partners, as adjusted, for the three months ended 30 Sep. 2024 was $1.99bn, an increase of $4mn from the three months ended 30 Sep. 2023.
Growth capital expenditures in the third quarter of 2024 were $724mn, while maintenance capital expenditures were $359mn.
Operational Highlights
- With the addition of new organic growth projects and acquisitions, volumes on Energy Transferâs assets continued to increase during the third quarter of 2024.
- Crude oil transportation volumes were up 25%, setting a new Partnership record.
- Crude oil exports were up 49%.
- Midstream gathered volumes and produced volumes were up 6% and 26%, respectively, setting new Partnership records.
- NGL fractionation volumes were up 12%, setting a new Partnership record.
- NGL transportation volumes were up 4%, setting a new Partnership record.
- The Partnership recently completed a 50 MMcf/d expansion to the Orla East processing plant in the Permian Basin.
- The Partnership also recently completed construction of a 30-mile crude oil pipeline that allows Energy Transfer to transport approximately 100,000 B/d of crude oil from its terminals in Midland, Texas to Cushing, Oklahoma.
- Energy Transfer recently approved construction of its ninth fractionator at Mont Belvieu, which will have a capacity of 165,000 B/d. Frac IX is expected to be in service in the fourth quarter of 2026 and will increase the Partnershipâs total fractionation capacity at Mont Belvieu to more than 1.3 million B/d.
Strategic Highlights
- In Jul. 2024, Energy Transfer completed the acquisition of WTG Midstream Holdings LLC, which added approximately 6,000 miles of complementary gas gathering pipelines and extended Energy Transferâs network in the Midland Basin. The transaction also added nine gas processing plants with a total capacity of approximately 1.5 Bcf/d, and an additional 200 MMcf/d processing plant is currently under construction.
- In Jul. 2024, Energy Transfer and Sunoco LP formed a joint venture combining their respective crude oil and produced water gathering assets in the Permian Basin. Energy Transfer serves as the operator of the joint venture.
- With forecasts suggesting that natural gas fueled power demand will increase significantly in the future, Energy Transfer is seeing increasing opportunities to provide natural gas to power plants and data centers spread across its natural gas footprint, from Arizona to Florida and from Texas to Michigan.
Financial Highlights
- In Oct. 2024, Energy Transfer announced a cash distribution of $0.3225 per common unit ($1.29 annualized) for the quarter ended 30 Sep. 2024.
- As of 30 Sep. 2024, the Partnershipâs revolving credit facility had $3.34bn available for future borrowings.
Energy Transfer benefits from a portfolio of assets with exceptional product and geographic diversity. The Partnershipâs multiple segments generate high-quality, balanced earnings with no single segment contributing more than one-third of the Partnershipâs consolidated Adjusted EBITDA for the three months ended 30 Sep. 2024. The vast majority of the Partnershipâs segment margins are fee-based and therefore have limited commodity price sensitivity.
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