10-KPeriod: FY2023

Energy Transfer LP Annual Report, Year Ended Dec 31, 2023

Filed February 16, 2024For Securities:ETET-PI

Summary

Energy Transfer LP (ET) reported a strong 2023 with significant growth across its business segments, driven by strategic acquisitions and organic growth projects. The company completed the acquisition of Crestwood Equity Partners LP and Lotus Midstream, expanding its footprint in key basins. Operationally, ET placed its eighth NGL fractionator at Mont Belvieu into service and brought a new cryogenic processing plant in the Permian Basin online. These strategic moves are expected to enhance ET's market position and operational efficiencies. Financially, the company demonstrated resilience, with Adjusted EBITDA increasing by $605 million year-over-year to $13.7 billion. Despite a net income decrease driven by a significant litigation-related loss and higher interest expenses, the underlying operational performance remained robust. The company's extensive network of natural gas and NGL pipelines, terminals, and storage facilities, supported by fee-based contracts, provides a stable cash flow foundation. ET continues to focus on fee-based businesses and enhancing profitability of existing assets, while also navigating the evolving energy landscape and regulatory environment.

Financial Highlights

43 data points
Beta

Revenue

$78.59B

23.0% Gross Margin

Net Income

$3.94B

5.0% Net Margin

Total Assets

$113.70B

Cash & Equivalents

$161.00M

Free Cash Flow

$9.55B

Financial Statements
Beta
Revenue$78.59B
Cost of Revenue$60.54B
Gross Profit$18.05B
SG&A Expenses$985.00M
Operating Expenses$70.29B
Operating Income$8.29B
Interest Expense$2.58B
Net Income$3.94B

Key Highlights

  • 1Completed the acquisition of Crestwood Equity Partners LP and Lotus Midstream, expanding its asset base and market reach.
  • 2Achieved strong operational performance with an 8% increase in Adjusted EBITDA to $13.7 billion for the year ended December 31, 2023.
  • 3Successfully integrated new assets and placed growth projects, such as the eighth NGL fractionator at Mont Belvieu and a new Permian processing plant, into service.
  • 4Demonstrated resilience in its diverse midstream operations, with positive contributions from NGL/refined products and crude oil segments, despite headwinds in the midstream natural gas sector.
  • 5Maintained a strong liquidity position with $3.56 billion in availability under its revolving credit facility as of December 31, 2023.
  • 6Increased common unit distributions for the fifth consecutive year, reflecting confidence in the company's financial health and cash flow generation.
  • 7Sunoco LP, a subsidiary, entered into an agreement to acquire NuStar Energy L.P., a significant move expected to enhance its midstream footprint.

Frequently Asked Questions

In 2023, Energy Transfer made significant strategic moves including the acquisition of Crestwood Equity Partners LP and Lotus Midstream. Operationally, the company placed its eighth NGL fractionator at the Mont Belvieu NGL Complex into service and commissioned a new 200 MMcf/d cryogenic processing plant in the Permian Basin. These actions are aimed at expanding its asset base, enhancing operational efficiencies, and strengthening its market position.

Energy Transfer reported a strong financial performance in 2023, with Adjusted EBITDA increasing by $605 million year-over-year to $13.7 billion. While net income decreased due to a litigation-related loss and higher interest expenses, the underlying operational segments showed resilience and growth, particularly in NGL and refined products transportation and services, and crude oil transportation and services.

Energy Transfer anticipates continued growth supported by production improvements, favorable market conditions, and increased utilization of its existing assets. The company expects to continue its focus on fee-based businesses, enhancing profitability of existing assets, and pursuing strategic acquisitions. Capital expenditures for 2024 are projected to be between $3.24 billion and $3.47 billion, a significant portion of which is allocated to growth projects, particularly in the NGL and refined products transportation and services segment.

Energy Transfer maintains a strong liquidity position, with $3.56 billion in availability under its revolving credit facility as of December 31, 2023. The company is actively managing its debt through refinancing activities and has a stated commitment to maintaining investment-grade credit metrics. Its debt level and debt agreements include covenants that the company was in compliance with as of December 31, 2023.