Summary
Energy Transfer LP (ET) reported a strong financial performance for the second quarter and the first half of 2024, driven by robust operational execution and strategic acquisitions. Total revenues increased significantly year-over-year, supported by growth across multiple segments, particularly NGL and refined products transportation and services, and crude oil transportation and services. The company highlighted significant increases in Adjusted EBITDA, reflecting improved segment margins and contributions from recent acquisitions. Key strategic moves during the period included the acquisition of WTG Midstream and the completion of Sunoco LP's acquisition of NuStar Energy L.P., which are expected to enhance ET's scale and service offerings. ET also announced the formation of a joint venture in the Permian Basin combining crude oil and water gathering assets. Despite increased interest expenses due to higher debt levels from these transactions, the company maintained compliance with its debt covenants and demonstrated healthy cash flow generation from operations. Distributions to common unitholders were increased to $0.3200 per unit for the quarter, signaling confidence in ongoing financial strength.
Financial Highlights
41 data points| Revenue | $20.73B |
| Cost of Revenue | $15.61B |
| Gross Profit | $5.12B |
| SG&A Expenses | $332.00M |
| Operating Expenses | $18.43B |
| Operating Income | $2.30B |
| Interest Expense | $762.00M |
| Net Income | $1.31B |
Key Highlights
- 1Total revenues for the quarter increased to $20.73 billion, up from $18.32 billion in the prior year quarter, and year-to-date revenues reached $42.36 billion, up from $37.32 billion.
- 2Adjusted EBITDA (consolidated) rose significantly to $3.76 billion for the quarter, an increase of $638 million year-over-year, and $7.64 billion year-to-date, up $1.08 billion.
- 3Completed the acquisition of WTG Midstream for $2.28 billion in cash and approximately 50.8 million ET common units, adding significant gas gathering and processing capacity in the Midland Basin.
- 4Sunoco LP (a subsidiary) completed the acquisition of NuStar Energy L.P. in May 2024, expanding its footprint in pipeline and terminal infrastructure.
- 5Formed a joint venture in the Permian Basin with Sunoco LP, combining crude oil and produced water gathering assets, with ET holding a 67.5% interest.
- 6Net income attributable to common unitholders was $1.18 billion for the quarter, compared to $797 million in the prior year quarter.
- 7The company maintained compliance with all debt covenants and had $4.97 billion available for borrowing under its Five-Year Credit Facility as of June 30, 2024.