10-KPeriod: FY2021

Energy Transfer LP Annual Report, Year Ended Dec 31, 2021

Filed February 18, 2022For Securities:ETET-PI

Summary

Energy Transfer LP (ET) reported significant operational and financial performance in its 2021 10-K, highlighted by a substantial increase in Adjusted EBITDA driven by strong contributions from its intrastate transportation and storage segment, largely due to favorable impacts from Winter Storm Uri. The company also completed the significant acquisition of Enable Midstream Partners in December 2021, which is expected to enhance its natural gas businesses. ET operates a diversified portfolio across natural gas, NGL, and refined products transportation and services, as well as crude oil operations. The company continues to focus on fee-based businesses to generate stable cash flows and maintain a strong balance sheet, balancing growth initiatives with financial discipline. While facing various risks including commodity price volatility, regulatory changes, and potential impacts from climate change initiatives, Energy Transfer remains committed to operational excellence and strategic growth through both organic expansion and acquisitions.

Financial Highlights

44 data points
Beta

Revenue

$67.42B

25.2% Gross Margin

Net Income

$5.47B

8.1% Net Margin

Total Assets

$105.96B

Cash & Equivalents

$336.00M

Free Cash Flow

$11.16B

Financial Statements
Beta
Revenue$67.42B
Cost of Revenue$50.40B
Gross Profit$17.02B
SG&A Expenses$818.00M
Operating Expenses$58.63B
Operating Income$8.79B
Interest Expense$2.27B
Net Income$5.47B

Key Highlights

  • 1Completed the acquisition of Enable Midstream Partners in December 2021, integrating its natural gas assets.
  • 2Achieved a significant increase in Adjusted EBITDA for 2021, driven by a strong performance in the intrastate transportation and storage segment, largely attributed to the impacts of Winter Storm Uri.
  • 3Demonstrated resilience and recovery across key segments, including NGL and refined products transportation and services, and midstream operations, despite market disruptions.
  • 4Maintained compliance with debt covenants and managed liquidity effectively, with substantial availability under its revolving credit facility as of December 31, 2021.
  • 5Continued to invest in growth and maintenance capital expenditures, with planned capital expenditures of $1.6 billion to $1.9 billion for 2022 across various segments.
  • 6Focused on increasing fee-based revenues to enhance stable, consistent cash flows while reducing commodity price exposure.
  • 7Initiated efforts to support alternative energy projects and reduce its environmental footprint, including the formation of an alternative energy group.

Frequently Asked Questions

Energy Transfer's 2021 financial performance was primarily driven by a substantial increase in Adjusted EBITDA, largely due to favorable impacts from Winter Storm Uri on its intrastate transportation and storage segment, as well as strong contributions from its midstream and NGL/refined products segments. The successful completion of the Enable Midstream Partners acquisition in December 2021 also contributed to the company's asset base and future growth prospects.

The acquisition of Enable Midstream Partners is strategically significant as it strengthens Energy Transfer's position in the natural gas sector by integrating Enable's substantial natural gas gathering, processing, and transportation assets. This move is expected to enhance ET's scale, operational efficiencies, and cash flow generation, particularly within its natural gas businesses, and is anticipated to be accretive to distributable cash flow per unit.

Energy Transfer manages its debt and liquidity through a combination of operational cash flow generation, disciplined capital allocation, and access to credit facilities. As of December 31, 2021, the company reported substantial liquidity with $336 million in cash and cash equivalents and $2.03 billion available under its revolving credit facility. ET also actively manages its debt portfolio through refinancing and repayment activities, while maintaining compliance with its debt covenants.

Energy Transfer operates across several key segments: Intrastate Transportation and Storage, Interstate Transportation and Storage, Midstream, NGL and Refined Products Transportation and Services, Crude Oil Transportation and Services, Investment in Sunoco LP, Investment in USAC, and All Other. In 2021, the Intrastate Transportation and Storage segment showed significant growth, largely due to Winter Storm Uri impacts. The Midstream and NGL/Refined Products segments also performed well. Crude Oil Transportation and Services experienced a decrease in Segment Adjusted EBITDA, primarily due to lower tariff rates and decreased acquisition/marketing business performance.