Energy Transfer LP (ET) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 4, 2022 4:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Hello, and welcome to the Energy Transfer First Quarter 2022 Earnings Conference Call. My name is Brandon, and I'll be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct the question and answer session. [Operator Instructions] As a reminder, this conference is being recorded.

I will now turn the call over to Tom Long, Energy Transfer's Co-CEO. And Mr. Long, you may begin.

Tom Long

Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer first quarter 2022 earnings call. I'm also joined today by Mackie McCrea and other members of our senior management team, who are here to help answer your questions after our prepared remarks.

Hopefully, you saw the press release we issued earlier this afternoon, as well as the slides posted to our website. As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements are based on our current beliefs as well as certain assumptions and information currently available to us and are discussed in more detail in our quarterly report on Form 10-Q for the quarter ended March 31, 2022, which we expect to be filed tomorrow, May 5.

I'll also refer to adjusted EBITDA and distributable cash flow, or DCF, both of which are non-GAAP financial measures. You'll find a reconciliation of our non-GAAP measures on our website.

I'd like to start today by looking at some of our first quarter highlights. We started the year off with a strong first quarter, where we generated adjusted EBITDA of $3.3 billion and DCF attributable to the partners of Energy Transfer, as adjusted, was $2.1 billion. This resulted in excess cash flow after distributions of approximately $1.5 billion. On an incurred basis, we had excess DCF of approximately $1.1 billion after distributions of $618 million and growth capital of approximately $390 million.

On April 26, we were pleased to announce a quarterly cash distribution of $0.20 per common unit or $0.80 on an annualized basis, which represents a more than 30% increase over the first quarter of 2021. As a reminder, future increases to the distribution level will be evaluated quarterly with the ultimate goal of returning distributions to the previous level of $30.5 per quarter or $1.22 on an annual basis, while balancing our leverage target, growth opportunities and unit buybacks.