- Net income attributable to partners of $1.01 billion, reflecting an increase over the prior period primarily due to higher operating income.
- Adjusted EBITDA of $2.81 billion, up 5 percent from the fourth quarter of 2018.
- Distributable Cash Flow attributable to partners of $1.55 billion, up 2 percent from the fourth quarter of 2018.
- Distribution coverage ratio of 1.88x, yielding excess coverage of $725 million of Distributable Cash Flow attributable to partners in excess of distributions.
- Provides 2020 outlook for Adjusted EBITDA of $11.0 billion to $11.4 billion.
- 2020 growth capital expenditures outlook, updated to include $300 million of capital expenditures related to the acquisition of SemGroup Corporation (“SemGroup”), expected to range from $3.9 billion to $4.1 billion.
- Reduces expected annual run-rate growth capital expenditures for 2021 and beyond to $2 billion to $2.5 billion based on increased project returns threshold.
Energy Transfer LP (NYSE:ET) (“ET” or the “Partnership”) today reported financial results for the quarter and year ended December 31, 2019.
ET reported net income attributable to partners for the three months ended December 31, 2019 of $1.01 billion, an increase of $395 million compared to the three months ended December 31, 2018. For the three months ended December 31, 2019, net income per limited partner unit (basic and diluted) was $0.38 per unit.
Adjusted EBITDA for the three months ended December 31, 2019 was $2.81 billion, an increase of $138 million compared to the three months ended December 31, 2018. Results were supported by continued strong performance among several of the Partnership’s core segments, with additional record operating performance in our NGL and refined products transportation and services segment.
Distributable Cash Flow attributable to partners, as adjusted, for the three months ended December 31, 2019 was $1.55 billion, an increase of $30 million compared to the three months ended December 31, 2018. The increase was primarily due to the increase in Adjusted EBITDA.
Key accomplishments and recent developments:
- In October 2019, the Permian Express 4 pipeline expansion went into full service.
- In December 2019, ET and Shell US LNG, LLC (“Shell”) announced that a comprehensive commercial tender package has been issued to engineering, procurement and construction contractors to submit final commercial bids for the proposed Lake Charles LNG liquefaction project being jointly developed by ET and Shell on a 50/50 basis. The project would modify ET’s existing LNG import facility in Lake Charles, Louisiana to add LNG liquefaction capacity of 16.45 million tonnes per annum for export to global markets.
- In February 2020, Frac VII was placed in service, bringing the total fractionation capacity at Mont Belvieu to over 900,000 barrels per day.
- On December 5, 2019, ET successfully acquired SemGroup and as a result of the merger, ET issued approximately 57.6 million of its common units to SemGroup stockholders. The combined operations of the two companies are expected to generate annual run-rate efficiencies of more than $170 million, consisting of commercial and operational synergies of $80 million, financial savings of $50 million and cost savings of $40 million.
- In January 2020, Energy Transfer Operating, LP (“ETO”) completed a registered offering of $4.5 billion of its senior notes, consisting of $1.0 billion aggregate principal amount of 2.90% senior notes due 2025, $1.5 billion aggregate principal amount of 3.75% senior notes due 2030 and $2.0 billion aggregate principal amount of 5.0% senior notes due 2050. ETO also completed a public offering of 500,000 of its 6.75% Series F Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units at a price of $1,000 per unit and 1,100,000 of its 7.125% Series G Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units at a price of $1,000 per unit. ETO used the aggregate net proceeds of approximately $6.04 billion from both offerings to repay certain of its outstanding indebtedness, including prepayment of certain senior indebtedness, and for general partnership purposes.
- In January 2020, ET announced a quarterly distribution of $0.305 per unit ($1.220 annualized) on ET common units for the quarter ended December 31, 2019.
- As of December 31, 2019, ETO’s $6.00 billion revolving credit facilities had an aggregate $1.71 billion of available capacity, and ETO’s leverage ratio, as defined by its credit agreement, was 3.96x.
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 30% of the Partnership’s consolidated Adjusted EBITDA in 2019. The vast majority of the Partnership’s segment margins are fee-based and therefore have limited commodity price sensitivity.
Conference call information:
The Partnership has scheduled a conference call for 4:00 p.m. Central Time/5:00 p.m. Eastern Time on Wednesday, February 19, 2020 to discuss its fourth quarter 2019 results. The conference call will be broadcast live via an internet webcast, which can be accessed through www.energytransfer.com or ir.energytransfer.com and will also be available for replay on the Partnership’s website for a limited time.