On August 7, 2024, Energy Transfer LP (ET, Financial) released its 8-K filing for the second quarter of 2024, reporting net income attributable to partners of $1.31 billion and net income per common unit (basic) of $0.35. The company, which owns a large platform of crude oil, natural gas, and natural gas liquid assets primarily in Texas and the U.S. midcontinent region, also reported adjusted EBITDA of $3.76 billion for the quarter.
Performance Overview
Energy Transfer LP (ET, Financial) reported revenues of $20.73 billion for Q2 2024, missing the analyst estimate of $22.01 billion. However, the reported earnings per share (EPS) of $0.35 fell short of the estimated $0.38. The company's adjusted EBITDA increased to $3.76 billion from $3.12 billion in Q2 2023, reflecting a robust operational performance despite incurring over $80 million in transaction-related expenses.
Operational and Strategic Highlights
Energy Transfer LP (ET, Financial) achieved several operational milestones during the quarter:
- Crude oil transportation volumes increased by 23%, setting a new record for the Partnership.
- Crude oil exports rose by 11%, and NGL fractionation volumes increased by 11%.
- In June 2024, the company began relocating a 200 MMcf/d cryogenic processing plant to the Delaware Basin, expected to be operational by mid-2025.
- In July 2024, Energy Transfer completed the acquisition of WTG Midstream Holdings LLC, adding approximately 6,000 miles of gas gathering pipelines and eight gas processing plants.
Financial Achievements
Energy Transfer LP (ET, Financial) reported distributable cash flow attributable to partners of $2.04 billion, up from $1.55 billion in Q2 2023. The company also announced a cash distribution of $0.32 per common unit for the quarter, a 3.2% increase compared to Q2 2023.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenues | $20.73 billion | $18.32 billion |
| Net Income Attributable to Partners | $1.31 billion | $911 million |
| Net Income per Common Unit (Basic) | $0.35 | $0.25 |
| Adjusted EBITDA | $3.76 billion | $3.12 billion |
Balance Sheet and Cash Flow Highlights
As of June 30, 2024, Energy Transfer LP (ET, Financial) reported total assets of $121.34 billion, up from $113.70 billion as of December 31, 2023. The company's long-term debt stood at $57.36 billion, compared to $51.38 billion at the end of 2023. The Partnership's revolving credit facility had no outstanding borrowings as of June 30, 2024.
Analysis and Commentary
Energy Transfer LP (ET, Financial) demonstrated strong operational performance with significant increases in transportation and export volumes. The acquisition of WTG Midstream Holdings LLC and the formation of a joint venture with Sunoco LP are strategic moves that expand the company's asset base and operational capabilities. However, the miss on EPS estimates indicates potential challenges in cost management and transaction-related expenses.
Overall, Energy Transfer LP (ET, Financial) continues to leverage its diversified asset portfolio to drive growth and enhance shareholder value. The company's focus on expanding its infrastructure and optimizing operations positions it well for future growth in the energy sector.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Energy Transfer LP for further details.
