Summary
Energy Transfer LP (ET) reported its first quarter 2013 financial results, showing a significant year-over-year decrease in Net Income attributable to Partners, dropping from $166 million in Q1 2012 to $90 million in Q1 2013. This decline is largely due to a substantial gain on the deconsolidation of its Propane Business in the prior year ($1,056 million), which did not recur in the current period. Total revenues increased significantly to $11.18 billion in Q1 2013 from $1.67 billion in Q1 2012, driven by higher crude and refined product sales, indicating expansion and integration of acquired businesses like Sunoco. The company has been active with significant debt issuance and repayment activities in early 2013. The balance sheets show an increase in total assets to $50.14 billion from $48.90 billion at year-end 2012, with property, plant, and equipment remaining the largest asset category. Long-term debt also increased to $22.34 billion from $21.44 billion. Investors should note the substantial noncontrolling interest of $14.35 billion, reflecting the significant portion of subsidiary earnings attributable to third parties. The company is managing commodity price risk through various derivative instruments, with substantial fair value assets and liabilities related to these contracts.
Financial Highlights
42 data points| Revenue | $11.18B |
| Cost of Revenue | $9.81B |
| Gross Profit | $1.37B |
| SG&A Expenses | $157.00M |
| Operating Expenses | $10.65B |
| Operating Income | $531.00M |
| Interest Expense | $310.00M |
| Net Income | $90.00M |
Key Highlights
- 1Net income attributable to partners decreased by 45.8% year-over-year, from $166 million in Q1 2012 to $90 million in Q1 2013, primarily due to the absence of a large gain recognized in the prior year.
- 2Total revenues surged to $11.18 billion in Q1 2013 from $1.67 billion in Q1 2012, driven by increased crude oil and refined product sales, indicating significant business expansion.
- 3Total assets grew to $50.14 billion as of March 31, 2013, from $48.90 billion as of December 31, 2012, primarily due to increases in property, plant, and equipment.
- 4Long-term debt increased to $22.34 billion as of March 31, 2013, from $21.44 billion as of December 31, 2012.
- 5The company issued new Senior Notes totaling $1.25 billion for ETP and $700 million for Sunoco Logistics in January 2013 to repay existing borrowings and for general partnership purposes.
- 6Noncontrolling interest remained substantial at $14.35 billion, indicating a significant portion of consolidated earnings not attributable to ET unitholders.
- 7The company actively uses commodity derivatives to manage price volatility across its various segments, with significant fair value assets and liabilities related to these instruments.