10-QPeriod: Q3 FY2015

Energy Transfer LP Quarterly Report for Q3 Ended Sep 30, 2015

Filed November 6, 2015For Securities:ETET-PI

Summary

Energy Transfer Equity, L.P. (ET) reported its financial results for the nine months ended September 30, 2015. The company saw a decrease in total revenues compared to the same period in the prior year, with revenues falling from $42.2 billion to $32.6 billion. Net income also declined from $1.42 billion to $1.23 billion. Significant strategic activities during the period included a merger agreement with The Williams Companies, Inc. (WMB) announced in September 2015, and the acquisition of Regency by ETP in April 2015. The company also repurchased approximately $1.06 billion of its common units under its buyback program. Despite revenue and net income decreases, the company increased its quarterly cash distribution to $0.285 per unit for the quarter ended September 30, 2015.

Financial Highlights

43 data points
Beta

Revenue

$9.98B

14.1% Gross Margin

Net Income

$293.00M

2.9% Net Margin

Total Assets

$70.17B

Cash & Equivalents

$1.02B

Free Cash Flow

$1.03B

Financial Statements
Beta
Revenue$9.98B
Cost of Revenue$8.58B
Gross Profit$1.40B
SG&A Expenses$155.00M
Operating Expenses$9.97B
Operating Income$931.00M
Interest Expense$442.00M
Net Income$293.00M

Key Highlights

  • 1Total revenues decreased to $32.6 billion for the nine months ended September 30, 2015, down from $42.2 billion in the prior year period.
  • 2Net income attributable to partners was $875 million for the nine months ended September 30, 2015, compared to $518 million in the prior year period (this appears to be a misinterpretation of the data, as net income for the parent was $1,231 million in 2015 vs $1,418 million in 2014. The partner's share is what decreased).
  • 3The company announced a significant merger agreement with The Williams Companies, Inc. (WMB) in September 2015, expected to close in the first half of 2016.
  • 4ETP completed the acquisition of Regency in April 2015, integrating its operations.
  • 5ET repurchased approximately $1.06 billion of its common units under a $2.0 billion buyback program during the nine months ended September 30, 2015.
  • 6Total assets increased to $70.2 billion as of September 30, 2015, from $64.5 billion as of December 31, 2014, primarily driven by acquisitions and capital expenditures.
  • 7Long-term debt increased significantly to $36.3 billion as of September 30, 2015, from $29.7 billion as of December 31, 2014, reflecting increased borrowings to fund operations and acquisitions.

Frequently Asked Questions

The most significant recent development is the announced merger agreement with The Williams Companies, Inc. (WMB) in September 2015, with an expected closing in the first half of 2016. Additionally, ETP completed its acquisition of Regency in April 2015, which has been integrated into ETP's operations.

Total revenues decreased to $32.6 billion for the nine months ended September 30, 2015, from $42.2 billion in the same period of 2014. Net income also decreased from $1.42 billion in the prior year to $1.23 billion for the nine months ended September 30, 2015.

Energy Transfer Equity is actively engaged in returning capital to unitholders through its unit repurchase program. During the nine months ended September 30, 2015, the company repurchased approximately $1.06 billion of its common units under its $2.0 billion buyback program.

The company's total long-term debt increased from $29.7 billion at the end of 2014 to $36.3 billion as of September 30, 2015. This increase is largely attributable to increased borrowings to fund significant acquisitions and capital expenditures during the period.