Summary
Energy Transfer LP (ET) reported its third-quarter and nine-month results for the period ending September 29, 2010. The company's financial performance was significantly impacted by the completion of the Regency Transactions in May 2010, which involved acquiring a controlling interest in Regency Energy Partners LP (Regency). This acquisition led to a substantial increase in total assets, goodwill, and intangible assets, reflecting the purchase accounting for the transaction. Operationally, consolidated revenues for the nine months increased compared to the prior year, driven by contributions from both ETP and Regency. However, net income attributable to partners saw a notable decrease for the nine-month period, largely due to increased interest expenses, the impairment of an investment in an affiliate, and the costs associated with the Regency Transactions and related debt extinguishment. The company also issued new senior notes and entered into a new credit facility during the period to manage its debt structure. Investors should monitor the integration of Regency and the ongoing management of the company's substantial debt load.
Financial Highlights
42 data points| Revenue | $1.59B |
| Gross Profit | $592.70M |
| SG&A Expenses | $61.53M |
| Operating Expenses | $1.39B |
| Operating Income | $202.05M |
| Interest Expense | $209.87M |
| Net Income | -$15.34M |
Key Highlights
- 1Significant increase in total assets from $12.16 billion to $16.85 billion, primarily due to the Regency Transactions.
- 2Goodwill and intangible assets saw substantial increases, reflecting the purchase accounting for the acquisition of Regency.
- 3Consolidated revenues for the nine months ended September 30, 2010, increased to $4.82 billion from $3.91 billion in the prior year.
- 4Net income attributable to partners decreased significantly for the nine months ended September 30, 2010, to $116.7 million from $302.9 million in the prior year.
- 5Increased interest expense of $460.6 million for the nine months ended September 30, 2010, up from $341.1 million, largely due to new debt issuances and preferred unit distributions.
- 6Completion of a $1.8 billion senior notes offering in September 2010 to repay existing debt and for general partnership purposes.
- 7The company reported $927.7 million in net cash provided by operating activities for the nine months ended September 30, 2010, an increase from $721.4 million in the prior year.