Summary
Energy Transfer LP (ET) reported a solid financial performance for the second quarter and first six months of 2021, demonstrating a significant recovery and operational strength. The company experienced substantial increases in revenue and net income compared to the same periods in 2020, largely driven by favorable commodity prices and the operational impacts of Winter Storm Uri. The "Rollup Mergers" completed in April 2021 streamlined ET's corporate structure, with all long-term debt now assumed by ET. The company also continues to advance its strategic acquisition of Enable Midstream Partners, with expectations to close in the second half of 2021, subject to regulatory clearance. Overall, ET appears to be navigating a strong market environment effectively, with positive momentum in its key operating segments and a continued focus on strategic growth and financial management.
Financial Highlights
40 data points| Revenue | $15.10B |
| Cost of Revenue | $11.51B |
| Gross Profit | $3.60B |
| SG&A Expenses | $184.00M |
| Operating Expenses | $13.50B |
| Operating Income | $1.60B |
| Interest Expense | $566.00M |
| Net Income | $626.00M |
Key Highlights
- 1**Revenue Growth:** Total revenues for the three months ended June 30, 2021, were $15.10 billion, a significant increase from $7.34 billion in the prior year period. For the six months ended June 30, 2021, revenues were $32.10 billion, up from $18.97 billion in the prior year.
- 2**Profitability Improvement:** Net income attributable to partners was $626 million for the three months ended June 30, 2021, up from $353 million in the prior year. For the six months ended June 30, 2021, net income attributable to partners was $3.91 billion, a substantial increase from a net loss of $501 million in the prior year period.
- 3**Adjusted EBITDA Increase:** Consolidated Adjusted EBITDA increased by 7% to $2.62 billion for the three months ended June 30, 2021, compared to $2.44 billion in the prior year. For the six months ended June 30, 2021, Adjusted EBITDA surged by 51% to $7.66 billion from $5.07 billion in the prior year, significantly benefiting from Winter Storm Uri impacts.
- 4**Enable Acquisition Progress:** The acquisition of Enable Midstream Partners is progressing, with unitholder approval received and expected closure in the second half of 2021, pending regulatory approvals.
- 5**Debt Management:** Long-term debt, less current maturities, decreased to $45.61 billion as of June 30, 2021, from $51.42 billion as of December 31, 2020, indicating active debt reduction efforts.
- 6**Commitment to Distributions:** The company announced its quarterly distribution of $0.1525 per common unit for the quarter ended June 30, 2021, maintaining its regular distribution.
- 7**Winter Storm Uri Impact:** The company recognized significant positive impacts from Winter Storm Uri, particularly in its intrastate transportation and storage segment, contributing substantially to the increase in Adjusted EBITDA for both the quarterly and year-to-date periods.