Energy Transfer reports record crude pipeline volumes in Q324

Energy Transfer reported net income attributable to partners for the three months ended September 30, 2024 of US$1.18 billion. For the three months ended September 30, 2024, net income per common unit (basic) was US$0.33.

Adjusted EBITDA for the three months ended September 30, 2024 was US$3.96 billion compared to US$3.54 billion for the three months ended September 30, 2023.

Distributable Cash Flow attributable to partners, as adjusted, for the three months ended September 30, 2024 was US$1.99 billion, an increase of US$4 million from the three months ended September 30, 2023.

Growth capital expenditures in the third quarter of 2024 were US$724 million, while maintenance capital expenditures were US$359 million.

Operational highlights

With the addition of new organic growth projects and acquisitions, volumes on Energy Transfer’s 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 million ft3/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 bbls/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 bbls/d. Frac IX is expected to be in service in the fourth quarter of 2026 and will increase the Partnership’s total fractionation capacity at Mont Belvieu to more than 1.3 million bbls/d.

Strategic highlights

In July 2024, Energy Transfer completed the acquisition of WTG Midstream Holdings LLC, which added approximately 6000 miles of complementary gas gathering pipelines and extended Energy Transfer’s network in the Midland Basin. The transaction also added nine gas processing plants with a total capacity of approximately 1.5 billion ft3/d, and an additional 200 million ft3/d processing plant is currently under construction.In July 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 fuelled power demand will increase significantly in the future, Energy Transfer is seeing increasing opportunities to provide natural gas to power plants and data centres spread across its natural gas footprint, from Arizona to Florida and from Texas to Michigan.

Financial highlights

In October 2024, Energy Transfer announced a cash distribution of US$0.3225 per common unit (US$1.29 annualised) for the quarter ended September 30, 2024.As of September 30, 2024, the Partnership’s revolving credit facility had US$3.34 billion available for future borrowings.

Energy Transfer benefits from a portfolio of assets with exceptional product and geographic diversity. The Partnership’s multiple segments generate high-quality, balanced earnings with no single segment contributing more than one-third of the Partnership’s consolidated Adjusted EBITDA for the three months ended September 30, 2024. The vast majority of the Partnership’s segment margins are fee-based and therefore have limited commodity price sensitivity.

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