Summary
Energy Transfer Equity, L.P. (ETE) reported its third quarter 2016 financial results, showing a decrease in net income to $41 million from $238 million in the prior year's comparable quarter. This decline was primarily influenced by a significant non-cash impairment charge of $308 million related to its investment in MEP. Despite the net income dip, the company's Segment Adjusted EBITDA remained strong, totaling $1.504 billion for the quarter, a slight increase from $1.500 billion in Q3 2015, indicating resilient operational performance across its various segments, particularly ETP and Sunoco LP. Total assets grew to $76.8 billion from $71.2 billion at the end of 2015, driven by substantial capital expenditures and acquisitions across its subsidiaries. Long-term debt also increased to $40.0 billion from $36.8 billion, reflecting continued investment and financing activities. The company has been actively managing its debt and capital structure, including the issuance of new debt and the repayment of existing obligations. Investors should monitor the company's ongoing litigation, particularly the appeal by WMB regarding the terminated merger, and the significant capital expenditure programs underway, especially the Bakken pipeline project, which continues to face regulatory and legal challenges.
Financial Highlights
43 data points| Revenue | $14.51B |
| Cost of Revenue | $5.78B |
| Gross Profit | $8.74B |
| SG&A Expenses | $209.00M |
| Operating Expenses | $7.06B |
| Operating Income | $1.70B |
| Interest Expense | $474.00M |
| Net Income | $209.00M |
Key Highlights
- 1Total revenues decreased to $9.675 billion for Q3 2016 from $10.616 billion in Q3 2015.
- 2Net income attributable to partners was $207 million for Q3 2016, down from $291 million in Q3 2015, largely due to a $308 million non-cash impairment charge on an investment in an unconsolidated affiliate (MEP).
- 3Total assets increased to $76.8 billion as of September 30, 2016, from $71.2 billion as of December 31, 2015, reflecting growth in property, plant, and equipment.
- 4Long-term debt, less current maturities, increased to $40.0 billion as of September 30, 2016, from $36.8 billion as of December 31, 2015.
- 5Segment Adjusted EBITDA for the quarter was $1.504 billion, a slight increase from $1.500 billion in the prior year's comparable quarter, demonstrating stable operational performance.
- 6Cash provided by operating activities for the first nine months of 2016 was $2.39 billion, an increase from $2.15 billion in the same period of 2015.
- 7The company has significant ongoing capital expenditure programs, with ETP expecting total direct growth capital expenditures of approximately $1.9 billion in 2017.