What was the primary driver for the significant increase in net income and Adjusted EBITDA in Q1 2021?

The primary driver for the significant increase in net income and Adjusted EBITDA was the impact of Winter Storm Uri in February 2021. This event led to substantial increases in realized storage margins and natural gas sales, particularly benefiting the intrastate transportation and storage segment.

What is the status of the Enable Midstream Partners acquisition?

Energy Transfer LP entered into a definitive merger agreement to acquire Enable Midstream Partners on February 16, 2021. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the second half of 2021.

How did the internal reorganization (Rollup Mergers) affect the company?

On April 1, 2021, ET completed several internal reorganization transactions known as the Rollup Mergers. These mergers involved consolidating certain subsidiaries, assuming long-term debt, and converting preferred units. The objective was to simplify the company's structure.

What is the outlook for capital expenditures in 2021?

Energy Transfer LP anticipates capital expenditures for 2021 to be between $1.54 billion and $1.75 billion for growth projects and between $515 million and $555 million for maintenance projects, excluding expenditures related to its investments in Sunoco LP and USAC. The company expects to fund maintenance capital expenditures and distributions with operating cash flow, and growth capital expenditures with borrowings under credit facilities and cash from operations.

ET/ET-PI 10-Q Quarterly Report Q1 FY2021 — Revenue, Net Income, EPS

Summary

Energy Transfer LP (ET) reported strong financial results for the first quarter of 2021, marked by a significant increase in net income and Adjusted EBITDA compared to the same period in 2020. This improvement was largely driven by the impacts of Winter Storm Uri, which significantly boosted realized storage margins and natural gas sales. Operationally, ET saw varied performance across its segments. While some segments experienced declines in transported volumes due to factors like contract expirations and customer bankruptcies, others benefited from new service initiations and increased demand. The company continues to advance its strategic initiatives, including the pending acquisition of Enable Midstream Partners, expected to close in the second half of 2021. ET also completed internal reorganization transactions (Rollup Mergers) on April 1, 2021, which are expected to simplify its structure. The company affirmed its commitment to returning capital to unitholders with a declared quarterly distribution of $0.1525 per unit.

Financial Highlights

40 data points

Beta

Revenue

$17.00B

0.4% Gross Margin

Net Income

$3.29B

0.2% Net Margin

Total Assets

$96.22B

Cash & Equivalents

$355.00M

Free Cash Flow

$5.16B

Financial Statements

Beta

Revenue	$17.00B
Cost of Revenue	$10.95B
Gross Profit	$6.05B
SG&A Expenses	$201.00M
Operating Expenses	$12.93B
Operating Income	$4.07B
Interest Expense	$589.00M
Net Income	$3.29B

Key Highlights

1Net income for the quarter was $3.64 billion, a substantial increase from a net loss of $964 million in Q1 2020, largely due to the impact of Winter Storm Uri.
2Adjusted EBITDA more than doubled to $5.04 billion, up from $2.64 billion in Q1 2020, primarily driven by strong performance in the intrastate transportation and storage segment due to storm-related pricing.
3The pending acquisition of Enable Midstream Partners remains on track for closing in the second half of 2021, subject to customary conditions, including regulatory clearance.
4ET completed significant internal reorganization transactions (Rollup Mergers) on April 1, 2021, simplifying its corporate structure.
5Cash used in investing activities decreased significantly to $635 million from $1.56 billion in the prior year, reflecting lower capital expenditures.
6Total debt decreased to $47.74 billion as of March 31, 2021, from $51.44 billion as of December 31, 2020.
7The company declared a quarterly cash distribution of $0.1525 per common unit for the quarter ended March 31, 2021.

Energy Transfer LP Quarterly Report for Q1 Ended Mar 31, 2021

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions