Summary
Energy Transfer LP (ET) filed its 2019 Form 10-K on February 20, 2020, detailing a year of significant strategic moves and operational growth. The company successfully integrated the acquisition of SemGroup Corporation, expanding its crude oil and refined products infrastructure, including the planned Ted Collins pipeline. ET also made progress on its Lake Charles LNG liquefaction project by issuing commercial tender packages for construction bids. The company's diversified business segments, including intrastate and interstate natural gas transportation and storage, midstream, and NGL/refined products and crude oil transportation, all demonstrated growth in key performance metrics and EBITDA. ET's investments in Sunoco LP and USA Compression Partners (USAC) also contributed positively to the overall results. The company highlighted its commitment to growth through acquisitions and organic projects while maintaining a strong balance sheet and investment-grade credit metrics. Despite facing a competitive and evolving energy landscape, ET remains focused on enhancing unitholder value through stable cash flows and strategic expansion.
Financial Highlights
44 data points| Revenue | $54.21B |
| Cost of Revenue | $39.80B |
| Gross Profit | $14.41B |
| SG&A Expenses | $694.00M |
| Operating Expenses | $47.01B |
| Operating Income | $7.20B |
| Interest Expense | $2.33B |
| Net Income | $3.52B |
Key Highlights
- 1Completed the acquisition of SemGroup Corporation in December 2019, adding crude oil and refined products infrastructure and expanding market access along the Gulf Coast.
- 2Announced significant progress on the Lake Charles LNG liquefaction project, issuing commercial tender packages for construction bids.
- 3Experienced growth across its diverse operating segments, with NGL and Refined Products Transportation and Services, and Crude Oil Transportation and Services showing particularly strong increases in Segment Adjusted EBITDA.
- 4Investments in Sunoco LP and USA Compression Partners (USAC) performed well, contributing positively to the company's overall financial results.
- 5ET reported an increase in consolidated Adjusted EBITDA by 18% to $9.51 billion for 2019 compared to 2018, driven by new assets, acquisitions, and increased demand.
- 6The company reiterated its commitment to a growth-oriented strategy, balancing expansion with a focus on maintaining a strong balance sheet and investment-grade credit metrics.
- 7Capital expenditures for growth projects were robust, with ETO expecting between $3.92 billion and $4.13 billion in growth capital expenditures for 2020.