Q1 2024 Energy Transfer LP Earnings Call Transcript
Key Points
- Energy Transfer LP reported a significant increase in adjusted EBITDA to $3.9 billion in Q1 2024 from $3.4 billion in Q1 2023.
- Record volumes were achieved through the company's crude pipelines, contributing to strong overall performance.
- The company announced a quarterly cash distribution increase to $0.3175 per common unit, up 3.3% from the previous year.
- Energy Transfer's credit rating was upgraded by Fitch to BBB with a stable outlook, following a similar upgrade by S&P in 2023.
- Strategic acquisitions and organic growth projects are underway, including expansions at Nederland and Marcus Hook terminals, enhancing future capacity and flexibility.
- Lower operational sales and unplanned maintenance projects impacted the Interstate segment, with adjusted EBITDA falling to $483 million from $536 million in Q1 2023.
- The company noted a $40 million benefit related to favorable timing on gains associated with hedged inventory in the crude oil segment, which is expected to reverse in Q2.
- Despite growth in NGL and refined products, the segment faced challenges from lower gains on hedged NGL inventory compared to the previous year.
- The intrastate segment's gains of approximately $250 million related to pipeline optimization opportunities are not expected to repeat throughout the remainder of the year.
- Energy Transfer faces ongoing market headwinds such as lower gas prices and production curtailments that have impacted midstream volumes.
Good day, and welcome to the Energy Transfer LP First Quarter 2024 Earnings Conference Call. (Operator Instructions). Should you need assistance,ÃÂ (Operator Instructions). After today's presentation, there will be an opportunity to ask questions.ÃÂ (Operator Instructions).ÃÂ We ask that you limit to asking one question and one follow-up question. Please note this event is being recorded. I would now like to turn the conference over to Tom Long, CEO of Energy Transfer. Please go ahead.
Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer First Quarter 2024 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
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