Energy Transfer LP (ET) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 1, 2022 4:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good afternoon, and welcome to the Energy Transfer Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded today.

I would now like to turn the conference over to Tom Long, Co-CEO.

Please go ahead, sir.

Tom Long

Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer third quarter 2022 earnings call. I'm also joined today by Mackie McCrea and other members of the senior management team, who are here to help answer your questions after the 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 upon 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 September 30, 2022, which we expect to be filed this Thursday, November 3.

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'll start today by going over our third quarter financial results. We were pleased to report another strong quarter during which we generated consolidated adjusted EBITDA of $3.1 billion, which was up approximately 20% compared to $2.6 billion for the third quarter of 2021.

In the third quarter, we experienced a nonrecurring $126 million charge in the crude oil segment related to the resolution of a prior year legal metal. In addition, we had an approximately $130 million negative impact due to the timing of the recognition of gains on hedged inventory in the NGL and refined products segment.

Absent these 2 items, adjusted EBITDA for the third quarter would have been $3.34 billion. Results for the third quarter benefited from higher volumes across all of our segments, including record volumes in the Midstream, intrastate, crude oil and through our fractionators. In addition, the acquisition of the Enable assets in December of 2021 contributed to our growth over the prior period. DCF attributable to the partners, as adjusted, was $1.6 billion for the third quarter of 2022 compared to $1.3 billion for the third quarter of 2021.