10-QPeriod: Q2 FY2013

Energy Transfer LP Quarterly Report for Q2 Ended Jun 30, 2013

Filed August 8, 2013For Securities:ETET-PI

Summary

Energy Transfer Equity, L.P. (ET) reported its financial results for the period ending June 29, 2013. The company's total assets grew to $50.14 billion, up from $48.90 billion at the end of the previous year, driven by significant acquisitions and operational expansions. Total revenues for the six months ended June 30, 2013, reached $23.24 billion, a substantial increase compared to $3.55 billion in the same period of 2012, largely due to the inclusion of crude oil and refined product sales from recent transactions, notably the Sunoco merger. Net income attributable to partners was $217 million for the first six months of 2013, compared to $220 million for the same period in 2012. The company's liquidity remains robust, supported by cash flows from operations and available credit facilities, although long-term debt also increased to $21.86 billion.

Financial Highlights

43 data points
Beta

Revenue

$12.06B

12.4% Gross Margin

Net Income

$127.00M

1.1% Net Margin

Total Assets

$50.14B

Cash & Equivalents

$621.00M

Free Cash Flow

$797.00M

Financial Statements
Beta
Revenue$12.06B
Cost of Revenue$10.56B
Gross Profit$1.50B
SG&A Expenses$149.00M
Operating Expenses$11.42B
Operating Income$644.00M
Interest Expense$305.00M
Net Income$127.00M

Key Highlights

  • 1Total assets increased to $50.14 billion as of June 30, 2013, from $48.90 billion as of December 31, 2012, reflecting growth through acquisitions and asset deployment.
  • 2Total revenues surged to $23.24 billion for the six months ended June 30, 2013, a significant increase from $3.55 billion in the prior year's comparable period, primarily due to the inclusion of crude oil and refined product sales from recent transactions.
  • 3Net income attributable to partners was $217 million for the six months ended June 30, 2013, a slight decrease from $220 million for the same period in 2012.
  • 4Long-term debt increased to $21.86 billion as of June 30, 2013, from $21.44 billion as of December 31, 2012, reflecting continued financing for operations and acquisitions.
  • 5The company completed significant transactions including the SUGS Contribution to Regency and ETP's acquisition of ETE's Holdco interest on April 30, 2013, which expanded its operational footprint and consolidated certain assets.
  • 6Segment Adjusted EBITDA showed strong performance, with total Segment Adjusted EBITDA reaching $2.215 billion for the six months ended June 30, 2013, up from $1.309 billion in the prior year's period, driven by the Investment in ETP segment.
  • 7The company maintained compliance with its debt covenants, demonstrating ongoing financial stability in managing its obligations.

Frequently Asked Questions

The substantial increase in revenue was primarily driven by the inclusion of crude oil and refined product sales, stemming from recent acquisitions and transactions, notably the Sunoco merger, which significantly expanded the company's product portfolio and operational scale.

Recent transactions, such as the SUGS Contribution to Regency and ETP's acquisition of ETE's Holdco interest, have led to an increase in total assets and consolidated revenues. These moves expanded the company's operational capabilities and consolidated key assets under ETP and Regency, impacting segmental reporting and overall financial structure.

The company's long-term debt increased to $21.86 billion as of June 30, 2013. While this indicates continued use of debt financing for growth and operations, the company was in compliance with its debt covenants, suggesting management is actively managing its leverage and financial commitments.

Energy Transfer Equity, L.P. utilizes various exchange-traded and over-the-counter commodity financial instrument contracts, including futures, swaps, and options, to manage its exposure to commodity price volatility across its subsidiaries. These derivatives are recorded at fair value, and the company actively monitors and manages these positions through established risk management policies.