Energy Transfer LP (NYSE:ET) Q4 2023 Earnings Conference Call February 14, 2024 4:30 PM ET

Company Participants

Tom Long - Co Chief Executive Officer and Director

Mackie McCrea - Co Chief Executive Officer and Director

Conference Call Participants

Jeremy Tonet - J.P. Morgan

Jean Salisbury - Bernstein

Keith Stanley - Wolf Research

Brian Reynolds - UBS

Michael Blum - Wells Fargo

Operator

Good afternoon. And welcome to the Energy Transfer Fourth Quarter 2023 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. Please note that this event is being recorded.

I would like to turn the call over to Tom Long. Please go ahead.

Tom Long

Thank you, Operator, and good afternoon, everyone. And welcome to the Energy Transfer's fourth quarter 2023 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-Q for the full year ended December 31, 2023, which we expect to file this Friday, February 16. 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 financial measures on our website.

Let's start today by going over our financial results. For the full year 2023, we generated adjusted EBITDA $13.7 billion, which is up 5% over 2022 and is a partnership record. DCF, attributable to the partners of Energy Transfer, as adjusted $7.6 billion, which resulted in excess cash flow after distributions of approximately $3.6 billion. Operationally, we moved record volumes across all of our segments for the year ended 2023, which included record volumes on our legacy assets before including contributions from assets acquired in 2023. In addition, we exported a record amount of total NGLs out of our Nederland and Marcus Hook of terminals in 2023.

For the fourth quarter of 2023, we generated adjusted EBITDA of $3.6 billion compared to $3.4 billion for the fourth quarter of 2022. In our base business, we had strong performances across our operations, which included record volumes through our NGL pipelines and fractionators, as well as record volumes in our crude oil and midstream segments. DCF, attributable to the partners of ET, as adjusted, was $2 billion compared to $1.9 billion for the fourth quarter of 2022. This resulted in excess cash flow after distributions of approximately $970 million. On January 25th, we announced a quarterly cash distribution of $0.315 per common unit or $1.26 on an annualized basis. This distribution represents an increase of 3.3% from $0.305 paid in the fourth quarter of 2022.