Energy Transfer LP (ET) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 15, 2023 4:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and welcome to the Energy Transfer Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in 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.

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

Tom Long

Thank you, operator, and good afternoon everyone and welcome to the Energy Transfer fourth 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 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 upon our current beliefs, as well as certain assumptions and information currently available to us, and are discussed in more detail in our Form 10-K for the full year ended December 31, 2022, which we expect to file this Friday, February 17. 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 going over our financial results. For full year 2022, we generated adjusted EBITDA of $13.1 billion, which reflects continued growth over 2021 and is a partnership record. DCF attributable to the partners of Energy Transfer, as adjusted, was $7.4 billion, which resulted in excess cash flow after distributions of approximately $4.4 billion. On an incurred basis, we had excess DCF of approximately $2.4 billion, after distributions of $3.1 billion and growth capital of approximately $1.9 billion. Operationally, we moved record volumes across all of our segments for the year ended 2022, which included record volumes on our legacy midstream, intrastate and NGL transport systems as well as through our fractionators at Mont Belvieu. In addition, we exported a record amount of NGLs out of our Nederland Terminal in 2022, and we expect our exports to continue to grow into 2023.

Looking at our fourth quarter 2022 results, we were pleased to report another strong quarter during which we generated consolidated adjusted EBITDA of $3.4 billion, which was up more than 20% compared to the fourth quarter of 2021. DCF attributable to the partners, as adjusted, was $1.9 billion compared to $1.6 billion for the fourth quarter of 2021. This resulted in excess cash flow after distributions of approximately $965 million. On an incurred basis, we had excess DCF of approximately $360 million after distributions of $945 million and growth capital of approximately $605 million. On January 25, we announced a quarterly cash distribution of $0.305 per common unit or $1.22 on an annualized basis. This distribution represents a 75% increase over the fourth quarter of 2021 and is a 15% increase over the third quarter of 2022.