Energy Transfer Q4 Profit Misses Estimates

Energy Transfer LP has reported $1.08 billion in net income attributable to partners for the fourth quarter (Q4) of 2024, down from $1.33 billion for the same three-month period in 2023.

Per common unit, net earnings landed at $0.29 for the October-December 2024 period. That missed the Zacks Consensus Estimate by 19.4 percent.

However, adjusted earnings before interests, taxes, depreciation and amortization rose to $3.88 billion for Q4 2024 from $3.6 billion for Q4 2023, helped by an increase in transport volumes for petroleum and refined products.

Crude oil transport volumes averaged 6.83 million barrels per day (MMbpd), up from 5.95 MMbpd in Q4 2023. “Crude oil transportation volumes were higher due to continued growth on our gathering systems, as well as contributions from recently acquired assets and from assets contributed upon the recent formation of the ET-S Permian joint venture with Sunoco LP, partially offset by lower volumes on our Bakken Pipeline”, Dallas, Texas-based Energy Transfer said in an online statement.

Terminaling volumes for crude fell to 3.32 MMbpd from 3.43 MMbpd. Crude transport and terminaling generated $6.22 billion in revenue, down from $7.21 billion for Q4 2023 as newly acquired assets drove an increase in expenses.

Natural gas liquid (NGL) transport volumes grew to 2.62 MMbpd in Q4 2024 from 2.16 MMbpd in Q4 2023. Refined products transport volumes climbed to 570,000 bpd from 552,000 bpd. Terminaling volumes for both products totaled 1.47 MMbpd, up from 1.45 MMbpd. NGL fractionation volumes were largely stable at 1.14 MMbpd.

“NGL transportation and terminal volumes increased primarily due to higher volumes from the Permian region, on our Mariner East pipeline system and on our Gulf Coast export pipelines”, Energy Transfer explained. “The increase in transportation volumes and the commissioning of our eighth fractionator in August 2023 also led to higher fractionated volumes at our Mont Belvieu NGL Complex”.

NGL segment revenue increased to $6.36 billion for Q4 2024 from $6.04 billion for Q4 2023.

In the interstate transport and storage segment, Energy Transfer recorded 17,026 BBtud of transported natural gas, up from 16,651 BBtud in Q4 2023, and 46 BBtud of sold gas, up from 31 BBtud. “Transported volumes increased primarily due to more capacity sold and higher utilization on our Panhandle, Trunkline and Gulf Run systems due to increased demand”, it said.

Segment revenue came at $600 million, down from $620 million.

In the Intrastate transport and storage segment, it registered 13,145 BBtud of transported gas, down from 14,229 BBtud in Q4 2023, and 10,350 BBtu of gas withdrawals, up from 6,440 BBtud.

“Transported volumes of gas on our Texas and Oklahoma intrastate pipelines decreased primarily due to less third-party transportation and decreased gas production from the Haynesville area”, Energy Transfer said. “Transported volumes reported above exclude volumes attributable to purchases and sales of gas for our pipelines’ own accounts and the optimization of any unused capacity”.

Segment revenue totaled $820 million, down from $892 million for Q4 2023.

In the midstream segment, gathering volumes increased to 20,690 BBtud from 20,322 BBtud, while NGL output grew to 1.13 MMbpd from 976,000 bpd. “Gathered volumes increased primarily due to recently acquired assets and higher volumes in the Permian region”, the company said. “NGL production increased primarily due to recently acquired assets and increased Permian plant utilization”.

Segment revenue landed at $3.16 billion, up from $2.41 billion for Q4 2023. Energy Transfer reported “an increase of $228 million in segment margin primarily due to recently acquired assets and higher volumes in the Permian region; partially offset by a decrease of $6 million in segment margin due to lower natural gas prices of $7 million, partially offset by higher NGL prices of $1 million”.

Total revenue was $19.54 billion, down from $20.53 billion for Q4 2023. Operating income was $2.28 billion, up from $2.17 billion.

Adjusted distributable cash flow attributable to partners was $1.98 billion.

Energy Transfer ended 2024 with $14.2 billion in current assets and $12.66 billion in current liabilities.

To contact the author, email jov.onsat@rigzone.com