Summary
Energy Transfer LP (ET) reported its third-quarter 2019 financial results, showcasing a significant increase in Adjusted EBITDA, primarily driven by new asset completions and acquisitions, alongside robust demand for its services. For the nine months ended September 30, 2019, ET achieved a substantial 23% increase in consolidated Adjusted EBITDA, reaching $8.4 billion, compared to $6.84 billion in the prior year. This growth was fueled by key projects coming online, including the Mariner East 2 pipeline, additional fractionators, and the Rover pipeline. The company also saw strong performance across its NGL and refined products, crude oil transportation, and interstate transportation segments, benefiting from increased throughput volumes and favorable market conditions. Financially, the company maintained compliance with its debt covenants. ET also actively managed its debt profile through various note offerings and exchanges during the period. Looking ahead, ET has announced its intention to acquire SemGroup for approximately $5 billion, a move expected to further strengthen its midstream portfolio.
Financial Highlights
42 data points| Revenue | $13.49B |
| Cost of Revenue | $9.86B |
| Gross Profit | $3.63B |
| SG&A Expenses | $173.00M |
| Operating Expenses | $11.64B |
| Operating Income | $1.83B |
| Interest Expense | $579.00M |
| Net Income | $858.00M |
Key Highlights
- 1Consolidated Adjusted EBITDA increased by 23% to $8.4 billion for the nine months ended September 30, 2019, compared to $6.84 billion in the prior year, driven by new asset completions and acquisitions.
- 2The Mariner East 2 pipeline, additional fractionators, and the Rover pipeline contributed significantly to the revenue growth across various segments.
- 3The company's NGL and refined products transportation and services segment saw a 36% increase in Segment Adjusted EBITDA for the nine months, supported by higher throughput volumes and new pipeline services.
- 4The crude oil transportation and services segment also experienced strong growth, with Segment Adjusted EBITDA up 33% for the nine months, driven by increased throughput on Texas and Bakken pipelines.
- 5Energy Transfer LP announced a definitive agreement to acquire SemGroup for approximately $5 billion, expected to close in late 2019 or early 2020, further expanding its midstream operations.
- 6ET maintained compliance with all debt covenants throughout the period.
- 7The company's balance sheet showed total assets of $91.9 billion and total liabilities and equity of $91.9 billion as of September 30, 2019.