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Energy Transfer boosts Q2 net income by $523M

by Erika Green

Energy Transfer LP has reported second quarter 2019 net income of $878 million, or 33 cents per share, Kallanish Energy reports, up $523 million, or 147.3%, compared to Q2 2018.

The increase is due primarily to higher operating income and the impact of the simplification transaction involving Energy Transfer and Energy Transfer Operating in October 2018, the Texas-based company said.

It had Q2 2019 revenue of $13.88 billion, down from $14.12 billion in Q2 2018.

The company also reported record adjusted Ebitda of $2.82 billion, up 25% from a year ago.

The results were supported by significant increases in four of the partnership’s five core segments, with record operating performance in the partnership’s natural gas liquids and refined products segment.

It reported distributable cash flow of $1.60 billion, up 23% from Q2 2018.

Energy Transfer increased its full-year 2019 adjusted Ebitda guidance to $10.8 billion to $11 billion and reduced its full-year capital expenditures to between $4.6 billion and $4.8 billion.

The company said it expects the Permian Express 4 pipeline expansion will be in service by Oct. 1. The project will flow 120,000 barrels per day from the Permian Basin of West Texas/southeast New Mexico to Gulf Coast markets.

It said construction is continuing on the company’s ethane storage tank and chilling facilities in Nederland, Texas, with an expected in-service date in Q4 2020.

ET and its Sunoco unit have closed on the JC Nolan Pipeline joint venture and successfully commissioned the diesel fuel pipeline in West Texas this week.

The company announced its eighth natural gas liquids fractionator at Mont Belvieu, Texas, and is seeking shippers to expand its Bakken pipeline system. That fractionator will add 150,000 Bpd of capacity and will be in service in Q2 2021, and will give the company 1 million barrels per day of fractionation capacity at Mont Belvieu.

It also opened an office in Beijing, China, last April, in an effort to boost LNG and Ngl sales.

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